WORLD TRADE  
ORGANIZATION  G/SCM/N/186/EEC/Add.25 
23 December 2009 
 
 (09-6569) 
Committee on Subsidies and 
Countervailing Measures Original:   Spanish 
 
 
 
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 Spain . 
 
_______________ 
                                                      
∗ On 1 December 2009, the Treaty of Lisbon amendi ng the Treaty on European Union and the Treaty 
establishing the European Community (done at Lisbon, 13 December 2007) entered into force.  On 
29 November 2009, the WTO received a Verbal Note (WT/L/779) from the Council of the Eu ropean Union and 
the Commission of the European Communi ties stating that, by virtue of the Treaty of Lisbon, as of 1 December 
2009, the European Union replaces an d succeeds the European Community. G/SCM/N/186/EEC/Add.25 
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  SPAIN 
TABLE OF CONTENTS 
 
Page 
 
I. FISHERIES ...................................................................................................................... .........4  
A. PROMOTION OF AQUACULTURE ..................................................................................................5  
B. MARINE CULTIVATION PLANS ....................................................................................................5  
C. REORGANIZATION AND RENOVATION OF THE FISHING FLEET :  RENOVATION AND 
MODERNIZATION OF THE FISHING FLEET ...................................................................................6  
D. REORGANIZATION AND RENOVATION OF THE FISHING FLEET :  DEFINITIVE STOPPAGE ............7  
E. REORGANIZATION AND RENOVATION OF THE FISHING FLEET .  SOCIO -ECONOMIC 
MEASURES ............................................................................................................................... ...8 
F. PILOT EXPERIMENTAL FISHING PROJECTS ..................................................................................9  
II. MINING......................................................................................................................... ..........10  
A. AID TO JOB CREATION PROJECTS IN MINING AREAS ................................................................10  
B. AID FOR COAL MINING .............................................................................................................11  
C. DEVELOPMENT OF NON-ENERGY MINING ................................................................................13  
III. INDUSTRY AND INNOVATION.........................................................................................14 
Innovation ............................................................................................................................... ............... 14 
A. INNOVATION TECHNICAL RESEARCH DEVELOPMENT PROGRAMME ........................................14  
B. TECHNICAL RESEARCH DEVELOPMENT PROGRAMME FOR THE TEXTILE /CLOTHING 
SECTOR ............................................................................................................................... ......16  
C. AVANZA  R+D  PROGRAMME .......................................................................................................17  
D. RESEARCH , DEVELOPMENT AND INNOVATION (R+D+i)  PROJECTS .........................................19  
E. IMPLEMENTATION PROCESS FOR THE COORDINATION AND INTERNATIONALIZATION 
OF THE SYSTEM .........................................................................................................................20  
F. FINANCING OF RESEARCH , DEVELOPMENT AND INNOVATION (R+D+i)  PROJECTS 
CONDUCTED BY ENTERPRISES ..................................................................................................21  
G. SUBSIDIES TO TECHNOLOGY -BASED ENTERPRISES - NEOTEC  SUBSIDIES .............................23  
H. PROGRAMME TO PROMOTE STABLE PUBLIC -PRIVATE COLLABORATION IN 
RESEARCH , DEVELOPMENT AND INNOVATION THROUGH THE CREATION OF 
NATIONAL STRATEGIC CONSORTIA FOR TECHNICAL RESEARCH 
(CENIT P ROGRAMME )..............................................................................................................24 
I. SUPPORT FOR SCIENCE AND TECHNOLOGY PARKS ...................................................................26 
Small and Medium-Sized Enterprises (SMEs) . ...................................................................................... 27 
J. AVANZA  SME  PROGRAMME .......................................................................................................27  
K. INNOEMPRESA ...........................................................................................................................29  
L. INNOVATIVE BUSINESS GROUPS ...............................................................................................30  G/SCM/N/186/EEC/Add.25 
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  Page 
 
Information and Communication Technology Infrastructures  .............................................................. 32 
M. AVANZA  INFRASTRUCTURE SUBPROGRAMME ............................................................................32  
N. PROGRAMME FOR THE EXTENSION OF BROADBAND ACCESS TO RURAL AND 
ISOLATED AREAS  (PEBA) ........................................................................................................35 
Climate Change ............................................................................................................................... .......37 
O. ENERGY AND CLIMATE CHANGE ACTION STRATEGY ..............................................................37  
P. PROGRAMME FOR THE PROMOTION OF RENEWABLE ENERGIES AND ENERGY 
EFFICIENCY ............................................................................................................................... 38 
Naval ............................................................................................................................... .......................39 
Q. SHIPBUILDING SUBSIDIES .........................................................................................................39  
R. INTEREST SUBSIDY FOR SHIPBUILDING LOANS ........................................................................40  
S. AID FOR TRAINING SHIPBUILDING WORKERS ..........................................................................41  
IV. REGIONAL SUBSIDIES.......................................................................................................43  
A. REINDUSTRIALIZATION OF DECLINING INDUSTRIAL AREAS ....................................................43  
B. R EGIONAL ECONOMIC INCENTIVES SCHEME ............................................................................44 G/SCM/N/186/EEC/Add.25 
Page 4  
 
  I. FISHERIES 
2007 AND 2008 BUDGET - DOMESTIC FUNDING  COMPONENT IN EU CO-FINANCED 
PROGRAMMES 
 
 The information includes a summary of all fisheries programmes together with detailed 
information on each of them. 
  Pursuant to Council Regulation (EC) No. 2369/2002 of 20 December 2002, amending 
Council Regulation (EC) No. 2792/1999 of 17 Decemb er 1999, laying down the detailed rules and 
arrangements regarding Community structural assistan ce in the fisheries and aquaculture sector, and 
Royal Decree 3448/2000 of 22 December, establishing th e basic regulations for structural aid in the 
fisheries and aquaculture sector, Royal Decree 235/2002 of 1 March, amending Royal 
Decree 3448/2000, Royal Decree 1048/2003 of 1 August, on the regulation of the fisheries sector and structural aid, and Royal Decree 1473/2004 of 18 June, introducing socio-economic measures in the fisheries sector and amending Royal Decree 3448/ 2000, the following aid has been granted: 
 
Promotion of aquaculture
 
 
 2007:  €5.27 million was allocated to 310 projects.  2008:  €4.35 million was allocated to 420 projects.  Marine cultivation plans
 
 
 2007:  €3.6 million.  2008:  €3.8 million.  Reorganization and renovation of the fishing fleet
 
 
2007: 
 
 Definitive stoppage of fishing 
€7.12 million was allocated for 150 projects. 
Renovation and modernization of the fishing fleet 
€4.91 million was allocated for 731 projects. 
 Socio-economic measures for reorganization of the fleet 
 €0.42 million was allocated to 202 beneficiaries. 
 
 2008:  
 
Definitive stoppage of fishing  
€1.05 million was allocated for 40 projects. 
Renovation and modernization of the fishing fleet 
€3.27 million was allocated for 450 projects. 
Socio-economic measures for reorganization of the fleet 
€0.14 million was allocated to 103 beneficiaries. 
 
 Pilot experimental fishing projects  
  2007:  €0.52 million was allocated to 28 projects. 
 2008:  €0.62 million was allocated to 33 projects.  G/SCM/N/186/EEC/Add.25 
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  A. PROMOTION OF AQUACULTURE  
1. Title of the programme  
 
Promotion of aquaculture. 
 
2. Period covered by the notification  
  2007 and 2008. 
 3. Policy objective and/or purpose of the subsidy
 
 
 Promotion and development of tangible inve stment in marine and inland aquaculture. 
 4. Authority
 
 
 Royal Decree 3448/2000 of 22 December, establishi ng the basic regulations for structural aid 
in the fisheries sector, and Royal Decree 235/200 2 of 1 March, amending Royal Decree 3448/2000. 
 5. Form of the subsidy
 
 
Direct aid. 
 
6. Beneficiaries:  to whom and how the subsidy is provided  
  Enterprises in the aquaculture sector.  
7. Subsidy per unit or total amount of the subsidy
 
  2007:  €5.27 million was allocated to 310 projects.   2008:  €4.35 million was allocated to 420 projects.  
8. Duration of the subsidy
 
  FIFG programme 2000-2006.  The deadline set by the FIFG programme 2000-2006 allows commitments and payments to be made up to 30 June 2009.  
9. Statistical data permitting an assessment of the trade effects of the subsidy
 
  The promotion of aquaculture helps to alleviate the fish supply crisis, while reducing pressure on fish stocks, and would thus not appear to have any effects on trade. 
B. M
ARINE CULTIVATION PLANS  
1. Title of the programme  
 
 National Marine Cultivation Plans. 
 2. Period covered by the notification
 
 
 2007 and 2008. 
 G/SCM/N/186/EEC/Add.25 
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  3. Policy objective and/or purpose of the subsidy
 
  Development and implementation of Nationa l Marine Cultivation Plans as a means of 
strengthening the balanced development of aquaculture, at the national level. 
 
4. Authority
 
  Law 23/1984 of 25 June, on marine cultivation.  5. Form of the subsidy
 
 
 Direct aid.1 
 6. Beneficiaries:  to whom and how the subsidy is provided
 
 
 Aquaculture Research Centres. 
 7. Subsidy per unit or total amount of the subsidy
 
 
2007:   €3,600,000  
 
2008:  €3,800,000 
 8. Duration of the subsidy
 
  Annual. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy
 
 The promotion of aquaculture helps to alleviate the fish supply crisis, while reducing pressure on 
fish stocks, and would thus not appear to have any effects on trade. 
C. REORGANIZATION AND RENOVATION OF THE FISHING FLEET :  RENOVATION AND 
MODERNIZATION OF THE FISHING FLEET  
1. Title of the programme  
  Renovation and reorganization of fishing vessels.  2. Period covered by the notification
 
 
 Financial years 2007 and 2008.  3. Policy objective and/or purpose of the subsidy
 
  Promotion of investment in the renovation and m odernization of the fishing fleet with a view 
to improving safety and working conditions in the fi sheries sector.  The cut-off date for aid to 
shipbuilding was 31 December 2004.  However, subsidies for projects approved up until 31 December 2004 may be paid until 31 July 2009.  
                                                     
 
1 That is to say, grants within the meaning of Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures.  G/SCM/N/186/EEC/Add.25 
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  4. Authority  
  Royal Decree 3448/2000 of 22 December, establishi ng the basic regulations for structural aid 
in the fisheries sector;  Royal Decree 235/2002 of 1 March, amending Royal Decree 3448/2000;  and 
Royal Decree 1048/2003 of 1 August, on the regulation of the fisheries sector and structural aid. 
 
5. Form of the subsidy
 
  Non-repayable subsidies.  
6. Beneficiaries
 
  Owners of new fishing vessels.  Shipowners in the fisheries sector.  7. Subsidy per unit or total amount of the subsidy
 
 
 2007:  €4.91 million was allocated to 731 projects.   2008:  €3.27 million was allocated to 450 projects.  8. Duration of the subsidy
 
 
 FIFG programme 2000-2006.  The deadline set by the FIFG programme 2000-2006 allows 
commitments and payments to be made up to 30 June 2009.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 There has been a reduction in the gross register ed tonnage (GRT) of the Spanish fishing fleet 
and therefore there are not considered to have  been any effects on trade in recent years. 
 D. R
EORGANIZATION AND RENOVATION OF THE FISHING FLEET :  DEFINITIVE STOPPAGE  
1. Title of the programme  
 
 Definitive stoppage of fishing.  2. Period covered by the notification
 
 
 Financial years 2007 and 2008. 
 3. Policy objective and/or purpose of the subsidy
 
  Restructuring of the fleet to encourage a co mplete end to fishing by certain vessels.  
Decommissioned fishing vessels that are deleted from the Third List of the Shipping Register and the 
official fishing fleet records may be scrapped, sunk or assayed to activities unrelated to fishing 
(historical heritage, research).  4. Authority
 
 
 Royal Decree 3448/2000 of 22 December (Official Journal of 23 December 2000), 
establishing the basic regulations for stru ctural aid in the fisheries sector. 
 G/SCM/N/186/EEC/Add.25 
Page 8  
 
   Royal Decree 1048/2003 of 1 August, establis hing the basic regulations for the fisheries 
sector and structural aid.  5. Form of the subsidy
 
 
 Capital grants. 
 6. Beneficiaries
 
  The aid is paid directly to sh ip-owners in the fisheries sector. 
 
 The amount granted varies in accordan ce with Table 1 of Annex I to Royal 
Decree 1048/2003.  7. Amount of the subsidy
 
 
 2007:  €7.12 million was allocated for 150 projects. 
 2008:  €1.05 million was allocated for 40 projects. 
 8. Duration of the subsidy
 
 
 FIFG programme 2000-2006.  The deadline set by the FIFG programme 2000-2006 allows 
commitments and payments to be made up to 30 June 2009.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 There are no effects on trade since these paymen ts are made to compensate for the stoppage 
of fishing.  E. R
EORGANIZATION AND RENOVATION OF THE FISHING FLEET .  SOCIO -ECONOMIC MEASURES  
1. Title of the programme  
 
 Socio-economic measures. 
 2. Period covered by the notification
 
  2007 and 2008. 
 
3. Policy objective and/or purpose of the subsidy
 
  To introduce socio-economic measures for fi shermen of boats subject to fisheries 
restructuring measures.  
4. Authority
 
  Royal Decree 3448/2001 of 22 December, establishi ng the basic regulations for structural aid 
in the fisheries sector;  Royal Decree 235/2002 of 1 March, amending Royal Decree 3448/2002;  and 
Royal Decree 1473/2004 of 18 June, introducing socio-economic measures in the fisheries sector and 
amending Royal Decree 3448/2000. 
  G/SCM/N/186/EEC/Add.25 
 Page 9 
 
 
  5. Form of the subsidy  
  Non-repayable subsidy of a per centage of the amount requested. 
 6. Beneficiaries:  to whom and how the subsidy is provided
 
 
 Workers in the fisheries sector.  7. Subsidy per unit or total amount of the subsidy
 
 
 2007:  €0.42 million was allocated to 202 beneficiaries. 
  2008:  €0.14 million was allocated to 103 beneficiaries.  8. Duration of the subsidy
 
 
 FIFG programme 2000-2006.  The deadline set by the FIFG programme 2000- 2006 allows 
commitments and payments to be made up to 30 June 2009. 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy  
  The subsidy is not considered to have any negative trade effects since it is intended for 
measures in support of workers in the sector. 
 F. P
ILOT EXPERIMENTAL FISHING PROJECTS  
1. Title of the programme  
 
 Pilot experimental fishing projects. 
 2. Period covered by the notification
 
  2007 and 2008.  
3. Policy objective and/or purpose of the subsidy
 
  Subsidies to the owners of Spanish fishing vessels for participation in pilot projects for 
experimental fishing in external and internati onal waters and waters under the jurisdiction of 
third countries.  According to Council Regulation (EC) No. 2792/1999 of 17 December, a pilot 
experimental fishing project means a project carri ed out by an economic operator, a scientific or 
technical body or another competent body to test, in conditions approaching actual conditions in the 
industry, the technical reliability and/or financial viability of an innovative t echnology with a view to 
acquiring and disseminating technical and/or financ ial knowledge of the technology being tested.  
Pilot projects must always comprise scientific monitoring of sufficient intensity and duration to obtain significant results.  They are required to have as their aim the conservation of fishery resources and to 
implement more selective techniques. 
 4. Authority
 
  Royal Decree 3448/2000 of 22 December (Official Journal of 23 December 2000), 
establishing the basic regulations for stru ctural aid in the fisheries sector. 
 G/SCM/N/186/EEC/Add.25 
Page 10  
 
  5. Form of the subsidy
 
  Non-repayable subsidy.  6. Beneficiaries:  to whom and how the subsidy is provided
 
 
 Owners of fishing vessels.  7. Subsidy per unit or total amount of the subsidy
 
 
 2007:  €0.52 million was allocated to 28 projects. 
  2008:  €0.62 million was allocated to 33 projects.  8. Duration of the subsidy
 
 
 FIFG programme 2000-2006.  The deadline set by the FIFG programme 2000-2006 allows 
commitments and payments to be made up to 30 June 2009.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 The subsidies are intended for research and experimentation in the fisheries sector and are 
therefore not considered to have any effects on trade.  
II. MINING 
A. A
ID TO JOB CREATION PROJECTS IN MINING AREAS  
1. Title of the programme  
  Aid scheme for job creation business projects that promote alternative development in mining areas.  State Aid Decision N476/2006.  2. Period covered by the notification
 
 
 2007 and 2008.  3. Policy objective and/or purpose of the subsidy
 
 
 The purpose is to promote regional development through aid for investment projects that help 
to reduce the dependency on coal mining of the areas concerned.  4. Authority
 
  Order ITC/1044/2007 of 12 April, adopting the regulatory basis for aid for job creation 
business projects that promote the alternative develo pment of mining areas, for the period 2007-2012.  
Order ITC/3741/2007 of 18 December, amending Order ITC/1044/2007 of 12 April, adopting the regulatory basis for aid for job creation business proj ects that promote the alternative development of 
mining areas, for the period 2007-2012.   G/SCM/N/186/EEC/Add.25 
 Page 11 
 
 
  5. Form of the subsidy  
  Non-repayable subsidies, granted for productiv e investments and calculated on the basis of 
the investment approved by the authorities.  
6. Beneficiaries:  to whom and how the subsidy is provided
 
  Aid is granted to enterprises, in genera l SMEs, and to independent entrepreneurs. 
  Once approved, the subsidy is notified individua lly to the parties concerned in an individual 
resolution establishing the basic project data, including the name of the beneficiary enterprise 
requesting it.   The aid is paid once the corresponding Autonomous Community, acting through the relevant body, has issued a report substantiating full execu tion of the project and fulfilment, within the 
specified periods, of the requirements laid down in  the individual resolution accepted beforehand by 
the beneficiary.  Enterprises may apply to receive  the subsidy in instalments provided that they 
produce evidence that the part of the investment fo r each instalment has been made, together with 
adequate guarantees against failure to complete.  7. Subsidy per unit or total amount of the subsidy
 
 
 2007:  €152,490,0 00 budgeted.  €137.5 million granted. 
  2008:  €160,102,000.  The allocation process is ongoing. 
 
8. Duration of the subsidy
 
  The current scheme will remain in effect until the end of 2012.  The scheme was amended in 
2007 to bring the maximum subsidies available into  line with the new regional aid map drawn up by 
the European Commission.  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  With regard to the statistical data permitting an assessment of trade effects, it should be noted 
that, since the subsidies take the form of capital for productive investment in disadvantaged regions 
and are authorized by the European Commission, th ey are not regarded as jeopardizing the principle 
of free competition. 
 B. A
ID FOR COAL MINING  
1. Title of the programme  
  State aid to the coal industry. 
2. Period covered by the notification
 
  2007 and 2008.  3. Policy objective and/or purpose of the subsidy
 
 
 The programme aims to cover the difference between coal mining costs and coal sales revenues. G/SCM/N/186/EEC/Add.25 
Page 12  
 
   
4. Authority
 
  Community legislation:  
 Council Regulation (EC) No. 1407/2002 of 23 July 2002 on State aid to the coal industry. 
  National legislation:   Order ITC/1188/2006 of 21 April, establishing the regulatory basis for aid to the coal-mining 
industry for the financial periods 2006 and 2007, corresponding to the aid provided for in Articles 4 
and 5.3 of Council Regulation (EC) No. 1407/2002 of 23 July 2002 on State aid to the coal industry.   Resolution of 28 March 2007 of the Institute for the Restructuring of Coal Mining and the 
Alternative Development of Mi ning Regions, announcing aid for the coal-mining industry for the 
financial period 2007, corresponding to the aid provided for in Articles 4 and 5.3 of Council 
Regulation (EC) No. 1407/2002 of 23 July 2002 on State aid to the coal industry.   Order ITC/3666/2007 of 14 December, adopting the regulatory basis for aid to the coal-mining industry for the financial periods 20 08, 2009 and 2010, corresponding to the aid provided 
for in Article 5.3 of Council Regulation (EC) No . 1407/2002 of 23 July 2002 on State aid to the coal 
industry. 
  Order ITC/2002/2006 of 15 June, adopting the regulatory basis for aid for labour costs in the form of pay-offs and aid intended to offset costs arising from the closure of coal-mining company production units, for the financial periods 2006-2012. 
 
 Resolution of 13 March 2007 of the Institute for the Restructuring of Coal Mining and the 
Alternative Development of Mining Regions, announcing aid for labour costs in the form of payoffs 
and aid intended to offset costs arising from the closure of coal-mining company production units, for 
the financial period 2007.  
 Order ITC/2304/2007 of 25 July, amending Order ITC/2002/2006 of 15 June adopting the 
regulatory basis for aid for labour costs in the form of payoffs and aid intended to offset costs arising 
from the closure of coal mining company produc tion units for the financial periods 2006-2012. 
  Resolution of 23 October 2008 of the Institute for the Restructuring of Coal Mining and the 
Alternative Development of Mining Regions, announcing aid for labour costs in the form of payoffs 
and aid intended to offset costs arising from the closure of coal-mining company production units, for 
the financial period 2008.   Royal Decree 8008/2006 of 30 June, establishing the aid scheme for labour costs in the form 
of early retirement, intended to cover exceptional costs from rationalization and restructuring plans 
for coal-mining company activities. 
 5. Form of the subsidy
 
  In the case of loss coverage, non-repayable subs idies are granted to coal-mining companies 
the production costs of which exceed their sales revenue.  Aid is approved by the European 
Commission.  Costs related to closure are also subsidized.   G/SCM/N/186/EEC/Add.25 
 Page 13 
 
 
  6. Beneficiaries:  to whom and how the subsidy is provided  
  Coal-mining companies which sustain operating losses are eligible for this subsidy.  The 
subsidy is payable in twelve instalments.  Early retir ement payments are paid directly to the workers;  
the companies receive no subsidy whatsoever. 
 
7. Subsidy per unit or total amount of the subsidy
 
  Aid to cover losses:  
 2007: €85,302,800 for State enterprises a nd €284,321,420 for private enterprises. 
 2008: €85,302,800 for State enterprises a nd €266,500,000 for private enterprises. 
  Aid for the closure of mining operations and early retirement:  
 2007: social costs:  €290,000,000;  technical costs:  €35,000,000. 
 2008: social costs:  €302,550,000;  technical costs:  €40,000,000.   Part of the budget for technical costs may be  transferred to social costs, if necessary. 
 8. Duration of the subsidy
 
 
 The current scheme will remain in effect until the end of 2010 when Council Regulation 
(EC) No. 1407/2002 expires.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 With regard to the statistical data permitting an assessment of trade effects, it should be noted 
that Spain imports 20 to 24 million tonnes of coal  per year, in accordance with annual hydrological 
behaviour.  The disappearance of the 11 million tonnes of  coal produced by Spai n, equivalent in terms 
of calorific value to 6.5 million tonnes of imported coal, would have hardly any impact on the global 
interoceanic trade of 800 million tonnes of coal per year. 
 
C. DEVELOPMENT OF NON-ENERGY MINING  
1. Title of the programme  
  Development of non-energy mining. 
 
 State Aid Decision N684/2006.  2. Period covered by the notification
 
  2007 and 2008. 
 
3. Purpose of the subsidy
 
  To develop geological/mining exploration and research in the non-energy mining sector and 
to reduce the environmental impact of non-energy mining activities. 
 
4. Authority
 
  Ministerial Order ITC/1797/2007 of 13 J une (Official Journal of 19 June 2007). G/SCM/N/186/EEC/Add.25 
Page 14  
 
  5. Form of the subsidy
 
  Non-repayable subsidy
2 and repayable subsidy.  Non-repa yable subsidy in the case of all 
environmental projects and certain geological/mining research projects.  Repayable subsidy (up to a 
maximum of 70 per cent of the eligible investment) at the request of the applicant, in the case of 
geological/mining research projects geared towards th e opening of new work centres, provided that 
research results are positive, with an interest-free repayment period of five to ten years;  with this type 
of project, the repayable subsidy becomes a non- repayable subsidy where research results are 
negative.  
6. To whom and how the subsidy is provided
 
  Enterprises, associations of enterprises or ins titutions which implement projects that meet the 
objectives set forth in point 3 (purpose of the subsidy) are eligible for the subsidy.  
 The subsidies for both environmental projects and geological/mining research projects are 
available for projects located in any region.   This aid is contingent upon the applicants me eting their tax and social security obligations, 
and the recipients must produce documents showing th at the subsidized activity has been carried out. 
 
7. Amount of the subsidy
 
  2007:  €6.88 million.   2008:  €6.74 million. 
 
 The maximum aid varies between 15 per cent and 70 per cent of the subsidizable investment 
depending on the kind of project, whether a repayabl e subsidy or a non-repayable subsidy is requested 
and whether or not the enterprise is an SME.  8. Duration of the subsidy
 
 
 The programme ends on 31 December 2011.  9. Statistical data on the trade effects of the subsidy
 
 
 The programme has no trade effects because of its small scale compared with the size of the 
sector (annual turnover of around €4,800 million) and the high number of recipients, i.e. 153 projects 
in 2007 and 143 projects in 2008.  
III. INDUSTRY AND INNOVATION 
Innovation  
 
A. I
NNOVATION TECHNICAL RESEARCH DEVELOPMENT PROGRAMME  
1. Title of the programme  
  Technical Research Development Programme (PROFIT). 
                                                     
 
2 That is to say, grants within the meaning of Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures.  G/SCM/N/186/EEC/Add.25 
 Page 15 
 
 
   
2. Period covered by the notification  
  2007 and 2008.  
3. Policy objective and/or purpose of the subsidy
 
  To contribute to the further and more balan ced development of the still small-scale Spanish 
Science-Technology-Enterprise (CTE) system by m eans of an aid scheme for various research and 
development projects and activities, in order: 
 
 - To promote research, development a nd innovation through T echnology Centres; 
  - to encourage the implementation of special science-technology projects of a strategic 
nature, defined as a collection of inter-rel ated research, development and innovation 
(R+D+i) activities which seek to attain a common objective, which may include 
generic activities of research, technological developments, demonstration of technologies, dissemination of the results and the implementation of complementary activities.  The strategic nature may deri ve from the environmental benefit, the 
promotion of competitiveness, the national socio-economic benefit or issues relating to a clear improvement in the quality of life; 
 
 - to stimulate the establishment of technological networks, that is to say, systems that 
allow for a fluid exchange of information with a view to encouraging collaboration 
between those involved in a specific technological sector or field; 
 
 - to encourage collaboration between the various elements of the science and 
technology system by means of projects to be carried out on a cooperative basis with the compulsory participation of a public research, development and innovation centre 
or a private research centre. 
 4. Authority
 
 
 Order PRE/690/2005 of 18 March 2005 (Offici al Journal of 19 March 2005), setting out the 
basis, support arrangements and management of technical research development under the National 
Scientific Research, Development and T echnological Innovation Plan (2004-2007). 
 
 Order PRE/402/2006 of 16 February (Official  Journal of 20 February 2006), amending 
Order PRE/690/2005 of 18 March.  5. Form of the subsidy
 
  Non-repayable subsidies
3 and interest-free loans and/or repayable advances. 
 
6. Beneficiaries:  to whom and how the subsidy is provided  
  Support is available to enterprises, technol ogy centres, private non-profit-making research 
and development centres, private research and development universities, public research and 
development centres, other public legal entities and business groups or associations (temporary 
business associations (UTE), economic interest  groups (AIE), non-profit-making sectoral 
                                                     
 
3 That is to say, grants within the meaning of Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures. G/SCM/N/186/EEC/Add.25 
Page 16  
 
  associations), as defined in Order PRE/690/2005 of 18 March 2005, amended by Order PRE/402/2006 
of 16 February.   This Programme invites applications for its subsidies on an annual basis.  The competitive 
application process is open to anyone who wishes to  carry out research and development projects or 
activities in the various technological areas already defined as of interest by the programme. 
 7. Subsidy per unit or total amount of the subsidy
 
  In 2007, subsidies amounting to €199.1 million, loans amounting to €526.7 million and 
repayable advances of €4.1 million were granted. 
  In 2008, subsidies amounting to €32.3 million and loans amounting to €61.5 million were granted.  
8. Duration of the subsidy
 
  The PROFIT Programme remains in effect un til the end of 2007, although payments may be 
made until 2010.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Given the nature of this pr ogramme, which mainly concerns  technological development and 
which is open to enterprises in many industrial and service sectors, together with the considerable 
number of beneficiaries of the specific projects subm itted (over 4,000 each year), the trade effects of 
the subsidies are minimal, since such aid is distributed over a wide range of economic activities. 
 
B. TECHNICAL RESEARCH DEVELOPMENT PROGRAMME FOR THE TEXTILE /CLOTHING SECTOR  
1. Title of the programme  
  Technical Research Development Programme for the Textile/Clothing Sector (2005-2007). 
 
2. Period covered by the notification
 
  2007.  3. Policy objective and/or purpose of the subsidy
 
 
 The primary objectives of this programme are as follows:  to encourage any industrial 
research and technological development programme  that enhances the technological capacity of 
enterprises;  to extend the culture of cooperati on in research and development among enterprises and 
between enterprises and other research bodies;  to  disseminate the results and achievements of 
research and development;  and to encourage coope ration between enterprises in order to acquire 
critical mass and enhance the competitiveness of SMEs in the sector. 
 4. Authority
 
  Order ITC/217/2005 of 4 February (Official Journal of 9 February 2005), setting out the 
basis, support arrangements and management of th e Technical Research De velopment Programme for 
the Textile/Clothing Sector (2005-2007), and the invitation for subsidy a pplications for 2005. 
  G/SCM/N/186/EEC/Add.25 
 Page 17 
 
 
   Order ITC/194/2006 of 1 February, amending Or der ITC/217/2005 of 4 February setting out 
the regulatory basis of the support arrangements a nd management for the granting of aid under the 
Technical Research Development Programme for the Textiles/Clothing Sector.   Order ITC/137 of 25 January, amending Order ITC/217/2005 of 4 February, setting out the 
regulatory basis of the support arrangements a nd management for the granting of aid under the 
Technical Research Development Programme for the Textiles/Clothing Sector (2005-2007).  5. Form of the subsidy
 
 
 Subsidies4 and repayable interest-free loans. 
 6. Beneficiaries:  to whom and how the subsidy is provided
 
  Private enterprises and groups or associations of enterprises in the textile/clothing sector, 
private non-profit-making research centres and other private non-profit-making entities are eligible for 
the subsidy.   The programme invites applications for its subsidies on an annual basis.  The competitive 
application process is open to anyone wishi ng to develop a project under the programme. 
 
 The granting of subsidies is contingent upon the applicants meeting their tax and social 
security obligations.  7. Subsidy per unit or total amount of the subsidy
 
 
 In 2007, subsidies amounting to €4.25 milli on and loans amounting to €10.04 million were 
granted.  8. Duration of the subsidy
 
  This programme is in effect until the end of 2007. 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  The Order establishing the regulatory basi s for the aid scheme (Order ITC/217/2005 of 
4 February) expressly stipulates that "such aid shall no t apply to export-related activities, in particular 
aid that is directly related to the quantities e xported, aid for the establishment and operation of a 
distribution network or aid for other current expendi tures linked to export activities, nor will there be 
any aid that depends on the use of domestic products over imported products".  This aid has therefore 
no impact on trade.  C. A
VANZA  R+D  PROGRAMME  
1. Title of the programme  
  Avanza  R+D subprogramme. 
 
                                                     
 
4 That is to say, grants within the meaning of Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures. G/SCM/N/186/EEC/Add.25 
Page 18  
 
  2. Period covered by the notification
 
  2008  3. Policy objective and/or purpose of the subsidy
 
 
 To contribute to the further and more balanced  development of the still small-scale Spanish, 
Science-Technology-Enterprise (CTE system) by mean s of an aid scheme for research, development 
and technological innovation projects and activiti es in relation to telecommunications and the 
information society. 
 
4. Authority  
  Order ITC/464/2008 of 20 February, setting out the basis, support arrangements and 
management of the Telecommunications and Inform ation Society Action Strategy under the National 
Scientific Research, Development and T echnological Innovation Plan (2008-2011). 
  Order ITC/2382/2008 of 5 August amending the above.  5. Form of the subsidy
 
 
 Non-repayable subsidies5 and interest-free loans with bank guarantees. 
 6. Beneficiaries:  to whom and how the subsidies provided
 
  Support is available to enterprises, research  bodies, other public legal entities, legally 
constituted non-profit-making entit ies and groups or associations (temporary business associations 
(UTE), economic interest groups (AIE), non-pr ofit-making sectoral associations and innovative 
business groups), as defined in Or der ITC/464/2008 of 20 February. 
  This programme invites applications for s ubsidies on an annual basis.  The competitive 
application process is open to anyone who wishes to carry out research, development and innovation 
(R+D+i) projects or activities in the various technolog ical areas already defined as of interest by the 
programme.  The activities receiving a subsidy may be  spread over several years (up to three annual 
instalments), provided that they begin in 2008.  In 2008 there were two invitations to apply:  in the 
first the payments for the multiannual projects are ma de annually, while in the second all the annual 
instalments are paid as a single payment. 
 
7. Subsidy per unit or total amount of the subsidy
 
  In the first invitation to apply in 2008 (the  annual instalments) €68.36million were paid in 
subsidies for 2008.  Approval was also given fo r €110.88million in loans for 2008.  In the second 
invitation (single payment) €14.98 million were a pproved as subsidies and €29.25 million as loans. 
 
8. Duration of the subsidy
 
  Under the Avanza  R+D subprogramme invitations to a pply will take place annually until the 
end of 2011. 
 
                                                     
 
5 That is to say, grants within the meaning of Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures.  G/SCM/N/186/EEC/Add.25 
 Page 19 
 
 
  9. Statistical data permitting an assessmen t of the trade effects of the subsidy  
  Given the nature of this pr ogramme, which mainly concerns  technological development and 
which is open to enterprises in many industrial and service sectors, together with the considerable 
number of beneficiaries of the specific projects s ubmitted, the trade effects of the subsidies are 
minimal, since such aid is distributed over a wide range of economic activities. 
 D. R
ESEARCH , DEVELOPMENT AND INNOVATION (R+D+i)  PROJECTS  
1. Title of the programme  
 
 Programmes of Applied Research and Experimental Development Projects. 
 2. Period covered by the notification
 
  2008 
 
3. Policy objective and/or purpose of the subsidy
 
  The main aims of the National Experiment al Development Programme are to promote 
technological development among the various agents of the Spanish Science and Technology System 
so as to encourage the competitiv eness of the production sectors th rough the improvement of their 
technological capacity, while at the same time solv ing problems of socioeconomic and environmental 
interest and promoting cooperation between the various elements of the system.  It contains two 
subprogrammes covering industrial deve lopment and the technology centres. 
  The main aims of the National Programme for Applied Research Projects are to encourage 
activities directed towards the acquisition of new knowledge, exploring the possible application of 
new technologies in the creation of new products or  processes, or to obtain a substantial improvement 
in existing products, processes or services, incl uding the implementation of projects of a 
precompetitive nature, whose results are not directly marketable and have a high technical risk.  There 
are three subprogrammes covering industrial app lied research, cooperative applied research and the 
technology centres. 
 
4. Authority
 
  Order PRE/621/2008 of 7 Ma rch, setting out the basis, support arrangements and 
management of the process of implementing R+D+ i projects under the National Scientific Research, 
Development and Technological Innovation Plan, (2008-2011). 
  Order PRE/1007/2008 of 11 April, inviting appli cations in 2008 for the granting of subsidies 
by the National Experimental Development Progr amme under the National Scientific Research, 
Development and Technological Innovation Plan, (2008-2011). 
 
5. Form of the subsidy
 
  Subsidies
6 and repayable interest-free loans and/or repayable advances. 
 
                                                      
6 That is to say, grants within the meaning of Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures. G/SCM/N/186/EEC/Add.25 
Page 20  
 
  6. Beneficiaries:  to whom and how the subsidies are provided
 
  Enterprises (micro-enterprises only in cooperati on projects as both applicant and co-operator);  
private non-university non-profit-making research  and development centres;  other private 
non-profit-making entities such as foundations or asso ciations;  business groups or associations;  
technological centres;  public R+D+i centres;  priv ate university research and development centres;  
other public legal entities.   This programme invites applications for its subsidies on an annual basis.  The competitive 
application process is open to anyone who wi shes to carry out projects under the programme. 
 
7. Subsidy per unit or total amount of the subsidy
 
  In 2008 subsidies amounting to €83.3milli on, loans amounting to €441.37 million and 
ERDF (European Regional Development Fund) repa yable advances amounting to €0.64 million were 
granted. 
 8. Duration of the subsidy
 
  This programme is in effect until the end of 2011.  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Given the nature of this subprogramme, wh ich mainly concerns technological development 
and which is open to enterprises in many industrial a nd service sectors, together with the considerable 
number of beneficiaries of the specific projects s ubmitted (over 2,000 annually), the trade effects of 
the subsidies are minimal, since such aid is distributed over a wide range of economic activities. 
 E. I
MPLEMENTATION PROCESS FOR THE COORDINATION AND INTERNATIONALIZATION OF THE 
SYSTEM  
1. Title of the programme  
 
 National programmes for public-pri vate cooperation and networks. 
 2. Period covered by the notification
 
  2008 
 
3. Policy objective and/or purpose of the subsidy
 
  The aim of the subsidy is to encourage st able medium-term coopera tion between public and 
private agents through the implementation of R+D proj ects.  It seeks to develop activities capable of 
generating growth in the current knowledge so ciety that will bring about development and 
technological innovation in each economic sector, facilitating the means necessary to undertake 
activities directed towards the design of products, new processes or services. 
  In addition, it seeks to promote scientific-tec hnological research among the different agents of 
the science-technology-business system through the estab lishment of stable public-private groups that 
will stimulate the improvement of technological  capacity and the increasing competitiveness of the 
Spanish production sector.  Subprogramme of support for technological platforms.   G/SCM/N/186/EEC/Add.25 
 Page 21 
 
 
  4. Authority  
  Order PRE/756/2008 of 14 March, setting out the regulatory basis for the granting of public subsides to science and technology within the Implementation Process for the Coordination and 
Internationalization of the System, under the Na tional Scientific Research, Development and 
Technological Innovation Plan (2008-2011)  Official Journal of 19 March 2008. 
 5. Form of the subsidy
 
  Non-repayable subsidies
7, loans and/or repayable advances from the European Regional 
Development Fund. 
 6. Beneficiaries:  to whom and how the subsidy is provided
 
  The beneficiaries may be:  enterprises (inc luding small and medium-sized enterprises and 
micro-enterprises);  technological centres listed as  Innovation and Technology Centres (CITs);  
private university research and development centr es;  other private non-profit making research and 
development centres;  public R&D centres (public research bodies and universities);  business groups 
or associations;  other public legal entities.  The forms of participa tion are either individual or in 
cooperation.  
 This programme invites applications for its subsidies on an annual basis through a public and 
open competitive application process in which th e process for granting subsidies operates in 
accordance with the principles of ob jectivity, publicity, transparency, equality and non-discrimination.  
Subsidies may be requested for ac tivities spread over several years. 
 
7. Subsidy per unit or total amount of the subsidy
 
  In 2008, subsidies amounting to €42.5 million,  loans amounting to €12 million and repayable 
advances amounting to €6 .91 were granted. 
 8. Duration of the subsidy
 
 
 The programmes are scheduled to remain in force until the end of 2011.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Given the nature of this activity, which main ly concerns the promotion of R&D and which is 
open to enterprises in many industrial and service sect ors, together with the considerable number of 
beneficiaries, the trade effects of the subsidies are minimal, since such aid is distributed over a wide 
range of economic activities.  F. F
INANCING OF RESEARCH , DEVELOPMENT AND INNOVATION (R+D+i)  PROJECTS 
CONDUCTED BY ENTERPRISES  
1. Title of the programme  
  Business R+D+i projects  
                                                     
 
7 That is to say, grants within the meaning of Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures. G/SCM/N/186/EEC/Add.25 
Page 22  
 
  2. Period covered by the notification
 
  2007 and 2008.  3. Policy objective and/or purpose of the subsidy
 
 
 The aim of the subsidy is to help Spanish enterprises increase their technological capacity 
through the financing of business projects in th e areas of technological research, development, 
innovation and promotion.  
4. Authority
 
  Royal Decree 1406/1986 of 6 June, approving the Articles of Association of the Centre for 
Industrial Technological Development (CDTI).  
5. Form of the subsidy
 
  Repayable interest-free and partially repayable subsidies.  6. Beneficiaries:  to whom and how the subsidies is provided
 
 
 The CDTI provides funding for research, development and innovation projects that are 
conducted by enterprises and subm itted through an ongoing open application process.  Such projects 
may be carried out individually, in collaboration w ith knowledge-generating centres, or in the form of 
a consortium of several enterprises.  
 The amount of the loan for each project is variab le:  in 2007 it amounted to up to 60 per cent 
depending on the type of project (industrial r esearch, technological development and technological 
innovation) and in 2008 it may reach 75 per cent
8, while complying with the limits established in the 
framework of Community law for State subsidies to research, development and innovation.  Payment 
of the loan is contingent upon the presentation of documents certifying the targets met, as established 
in the contract with the enterprise.  Enterprises ha ve the option of taking an advance of up to 75 per 
cent of the subsidy granted through bank pre-financing. 
 7. Subsidy per unit or total amount of the subsidy
 
  In 2007, disbursements, in the form of re payable interest-free and partially repayable 
subsidies, amounted to €328.03 million. 
  In 2008, disbursements, in the form of re payable interest-free and partially repayable 
subsidies, amounted to €411.97 million.   In 2007, the average loan granted for each project was €0.66 million and the total average 
investment was €1.27 million. 
  In 2008, the average loan granted for each project was €0.53 million and the total average 
investment was €1 million.  
                                                     
 
8 In 2008 the CDTI restructured its R+D+i projects by integrating individual projects of coordinated 
industrial research, technological de velopment and innovation in R&D proj ects with industrial research and 
technological development activities.  G/SCM/N/186/EEC/Add.25 
 Page 23 
 
 
  8. Duration of the subsidy  
  Duration of the programme:  indefinite   Loans granted by the CDTI finance projects spa nning a number of years.  In 2008 the average 
duration of a project was 23 months with a repayment period of ten years, in which up to three years 
may be free of repayments.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Given the nature of this programme, which ma inly concerns the promotion of research and 
development and which is open to enterprises in many industrial and service sectors, together with the 
considerable number of beneficiaries of these spec ific projects submitted, the trade effects of the 
subsidies are minimal, since th e loans are distributed over a wide range of economic activities. 
 
G. SUBSIDIES TO TECHNOLOGY -BASED ENTERPRISES - NEOTEC  SUBSIDIES  
1. Title of the programme  
  NEOTEC  2. Period covered by the notification
 
 
 2007 and 2008.  3. Policy objective and/or purpose of the subsidy.
 
 
 The aim of this programme is to establis h and consolidate independent technology-based 
enterprises that are less th an two years old.  It also seeks to stimulate the transfer of knowledge from 
the research sphere to the business context.  4. Authority
 
 
 Royal decree 1406/1986 of 6 June, approving the Articles of Association of the Centre for 
Industrial Technological Development (CDTI).   Subsidies to newly established innovative enterprises under Community Law for State aid to 
research, development a nd innovation 2007-2013. 
 
5. Form of the subsidy
 
  Repayable interest-free subsidies.  6. Beneficiaries:  to whom and how the subsidy is provided
 
 
 The CDTI funds technology-based business pr ojects through an ongoing open application 
process.   The amount of the loan granted is 70 per cent of the budget up to a maximum of €400,000.  
Part of the subsidy is advanced on signature of the contract and paymen t of the rest is contingent upon 
the presentation of documents certifying the targets met, as established in the contract with the 
enterprise.  G/SCM/N/186/EEC/Add.25 
Page 24  
 
  7. Subsidy per unit or total amount of the subsidy
 
  In 2007, disbursements, in the form of repayable interest-free subsidies amounted to €12.40 million.  
 In 2008, disbursements, in the form of re payable interest-free subsidies, amounted to 
€13.96 million.   In 2007, the average loan granted for each project was €0.34 million and the total average 
investment was €0.65 million. 
 
 In 2008, the average loan granted for each project €2.35 million and the total average investment was €0.66 million.  8. Duration of the subsidy
 
 
 Duration of the programme:  indefinite.   Loans granted by the CDTI finance projects spanning a number of years.  In 2008, the average duration of a project was 20 months.  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Given the nature of this programme, wh ich mainly concerns the establishment and 
consolidation of new innovative ente rprises less than two years old, in a phase of development not yet 
ready to enter the market, and which is open to enterprises in many industrial and service sectors, 
together with the considerable number of benefici aries of the specific project submitted, the trade 
effects of the subsidies are minimal, since the lo ans are distributed over a wide range of economic 
activities.  H. P
ROGRAMME TO PROMOTE STABLE PUBLIC -PRIVATE COLLABORATION IN RESEARCH , 
DEVELOPMENT AND INNOVATION THROUGH THE CREATION OF NATIONAL STRATEGIC 
CONSORTIA FOR TECHNICAL RESEARCH (CENIT  PROGRAMME ) 
1. Title of the programme  
  Programme for National Strategic Consortia fo r Technical Research (CENIT Programme).  
State Decision N410/2005. 
 
2. Period covered by the notification
 
  2007 and 2008.  3. Policy objective and/or purpose of the subsidy
 
 
 The aim of the programme is to finance st able public-private collaboration in research, 
development and innovation, in areas of strategic importance to the economy through the creation of 
national strategic consortia for tec hnical research (CENIT programme). 
 
4. Authority  
  Order ITC/2759/2005 of 2 August, adopting the re gulatory basis for the granting of subsidies 
intended to promote stable public-private collabora tion in research, development and innovation, in  G/SCM/N/186/EEC/Add.25 
 Page 25 
 
 
  areas of strategic importance to the economy, throu gh the creation of national strategic consortia for 
technical research (CENIT Programme) (Official Journal of 1 September 2005). 
  Order ITC/2143/2006 of 30 June, amending Order ITC/2759/2005 of 2 August adopting the 
regulatory basis for the granting of subsidies inte nded to promote stable public-private collaboration 
in research, development and innovation, in areas of  strategic importance to the economy, through the 
creation of national strategic consortia for technical research (CENIT Programme) (Official Journal of 4 July 2007).   Resolution of 5 July 2007 of the Centre for Industrial Technological Development (CDTI), 
announcing subsidies intended to promote stab le public-private collaboration in research, 
development and innovation, in areas of strategic importance to the economy, through the creation of 
national strategic consortia for technical res earch (CENIT Programme) (Official Journal of 
11 July 2007).  
 Resolution of 5 February 2007 of the Cent re for Industrial Technological Development 
(CDTI), announcing subsidies intended to promote st able public-private collaboration in research, 
development and innovation, in areas of strategic importance to the economy, through the creation of 
national strategic consortia for technical res earch (CENIT Programme) (Official Journal of 
9 February 2007).  
 Resolution of 21 November 2007 of the Cent re for Industrial Technological Development 
(CDTI), announcing subsidies intended to promote st able public-private collaboration in research, 
development and innovation, in areas of strategic importance to the economy, through the creation of 
national strategic consortia for technical res earch (CENIT Programme) (Official Journal of 
4 December 2007). 
 
5. Form of the subsidy
 
  Non-repayable subsidies
9 granted to finance major integrated projects for strategic industrial 
research which are large in scale and of broad scientific/technical scope.  
6. Beneficiaries:  to whom and how the subsidy is provided
 
  Support is available to any group of public or private legal pers ons, in the terms established in 
Article 11.3 of the General Law on Subsidies 38/ 2003 of 17 November.  Such groups will be 
governed by the contractual document regulating them. 
 
 Groups are required to comprise at least four autonomous firms (two large or medium-sized 
enterprises and two small enterprises) in accordan ce with the European Commission definition. 
  The relevant participation in the project of at  least two research bodies is also required.  Their 
participation must, in all cases, be formalized by means of a subcontract with one or more of the 
enterprises belonging to the group. 
  Projects must have an average annual budge t of between €5 and €10 million.  The maximum 
intensity allowed is 50 per cent of the eligible costs of the project.  
                                                     
 
9 That is to say, grants within the meaning of Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures. G/SCM/N/186/EEC/Add.25 
Page 26  
 
   Beneficiaries may receive the subsidy in in stalments, as provided in the annexes to the 
decision granting the support, once evidence has be en furnished that the activities corresponding to 
each instalment have been carried out.  7. Subsidy per unit or total amount of the subsidy
 
 
 Disbursements in 2007 amounted to €76. 57 million and in 2008 to €156.11 million. 
 8. Duration of the subsidy
 
 
 The subsidies approved by the CDTI finance pr ojects with a normal duration of four years. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Given the nature of this programme, whic h seeks to encourage stable public-private 
collaboration in the field of innovation and to fina nce major projects geared towards planned research 
in technological areas of the future and with possi ble international ramifications, with a view to 
generating fresh knowledge which c ould prove useful in the development of new products, processes 
or services or for technological integration, the trad e effects of these subsidies are minimal, given the 
distribution of the subsidies over a wide range of  economic activities, the considerable number of 
beneficiaries, and the marked pre-competitive nature of the projects, which distances them 
considerably from the market. 
 I. S
UPPORT FOR SCIENCE AND TECHNOLOGY PARKS  
1. Title of the programme  
 
 Support programme for science and technology parks (until 2007). 
  Parks infrastructure subprogramme ACTEPARQ (since 2008).  2. Period covered by the notification
 
 
 2007 and 2008. 
 3. Policy objective and/or purpose of the subsidy
 
  Subsidies for scientific-technological equipment and infrastructure projects and research, 
development and innovation projects, directed towa rds the promotion of science and technology parks 
and of the entities established therein.  The aim is to contribute to the further and more balanced 
development of the still small-scale Spanish Science-Technology-Enterprise (CTE) system. 
 4. Authority
 
 
 Order ECI/396/2006 of 13 February (Official  Journal of 18 February), amending order 
ECI/1385/2005 of 9 May.   Community framework for State aid for research and development (96/C 45/06).  
 Order PRE/660/2008 of 7 March, setting out the regulatory basis for the granting of public 
subsidies to science and technology in the implementation process of activities relating to 
scientific-technological infrastructures under the Na tional Scientific Research, Development and 
Technological Innovation Plan (2008-2011).  G/SCM/N/186/EEC/Add.25 
 Page 27 
 
 
   
5. Form of the subsidy  
  Subsidies will be granted on the basis of compe titive applications.  Support is granted in the 
form of subsidies, loans and/or repayable a dvances from the European Regional Development Fund 
(ERDF). 
 6. Beneficiaries:  to whom and how the subsidy is provided
 
  Support to parks is intended to benefit entities already installed or which are intending to 
locate themselves in the parks (enterprises, tec hnology centres, non-profit making entities and public 
legal entities).  Park promotion entities and the lega l entities that manage innovative groups that plan 
to establish infrastructures to be used for free-acc ess scientific and technological operations in the 
Parks are also eligible.  In all cases, the projects must be coordinated and therefore submitted by the 
park promotion entity. 
 
7. Subsidy per unit or total amount of the subsidy
 
  In 2007, aid was granted to 290 projects.  The subsidies amounted to €2.03 million and the 
loans to €405.089 million.  
 In 2008, 147 projects received support.  Th e subsidies amounted to €1.54 million and the 
loans to €76.26 million.  8. Duration of the subsidy
 
 
 The aid for these projects may be spread over several years (up to four years). 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
. 
  Given the nature of the programme, which is  concerned with the promotion of science and 
technology parks and is not intended directly to develop production processes, the effects on trade are 
minimal. 
 
Small and Medium-Sized Enterprises (SME) 
 
J. A
VANZA  SME  PROGRAMME  
1. Title of the Programme  
  Avanza  SME Programme (in 2007) 
  Avanza  SME subprogramme (included in the Tel ecommunications and Information Society 
Action Strategy of the National Research, De velopment and Innovation Plan, 2008-2011). 
 
2. Period covered by the notification
 
  2007 and 2008.  
3. Policy objective and/or purpose of the subsidy
 
  Its purpose is to promote collective solutions for SMEs, both sectorally and horizontally, with 
a view to improving their productivity and competitiveness. G/SCM/N/186/EEC/Add.25 
Page 28  
 
   
4. Authority
 
  Order ITC/524/2007 of 27 February, setting out the regulatory basis for the granting of support for the implementation of projects and act ivities for the development of the information 
society, directed towards small and medium -sized enterprises in the framework of the Avanza  Plan 
(Avanza  SME Programme) (Official Journal of 9 March 2007). 
  Order ITC/464/2008 of 20 February, setting out the regulatory basis, support arrangements 
and management of the Telecommunications and In formation Society Action Strategy within the 
National Scientific Research, Development a nd Technological Innovation Plan (2008-2011). 
  Commission Regulation (EC) No. 69/2001 of 12  January relating to the application of 
Articles 87 and 88 of the EC Treaty relating to " de minimis " aid. 
 
5. Form of the subsidy
 
  Non-repayable subsidy.
10 
 6. Beneficiaries:  to whom and how the subsidy is provided
 
 
 Enterprises, non-profit-making entities whose purpose is to provide support services to small 
and medium-sized enterprises, economic interest gro ups of enterprises with the same purpose and also 
combinations of the above are eligible for the subsidy.   The application process is public and open involving competition process between the 
requests submitted.  Activities seeking aid may be multi-annual (up to two years) with annual 
payments of the aid.  7. Subsidy per unit or total amount of the subsidy
 
  Avanza  SME Programme.  In 2007, €37.34 milli on was granted in subsidies for 2007 and 
€39 million for 2008. 
  Avanza  SME Subprogramme.  €34.98 million was granted for 2008. 
 8. Duration of the subsidy
 
 
 Avanza  SME Programme will invite applications annually until the end of 2011, although as 
of 2008 its legal framework has been amended.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 The aid regime has no trade effects owing to its small scale and the large number of small and 
medium-sized enterprises that have indirectly be nefited from the aid, given that the programme is 
multi-sectoral.  
                                                     
 
10 That is to say, grants within the meaning of  Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures.  G/SCM/N/186/EEC/Add.25 
 Page 29 
 
 
  K. INNOEMPRESA  
1. Title of the subsidy programme  
  Programme of support for innovation in  small and medium-sized enterprises 
(INNOEMPRESA). 
 
2. Period covered by the notification
 
  2007 and 2008.  
3. Policy objective and/or purpose of the subsidy
 
  Its objective is to provide support for innovation and competitiveness in small and 
medium-sized enterprises through the implementati on of projects in the technological, organizational 
and business management fields. 
 
4. Authority
 
  Royal Decree 1579/2006 of 22 December, setting out the support arrangements and management system for the Programme of suppor t for innovation in small and medium-sized 
enterprises (2007-2013) (Official Journal of 2 February 2007). 
 
5. Form of the subsidy
 
  Non-repayable subsidies.
11 
 
6. Beneficiaries:  to whom and how the subsidy is provided  
  Small and medium-sized enterprises that have one or more employees and intermediate bodies may apply for and receive these subsidies.   Reference should be made to Commissi on Recommendation 2003/361/EC of 6 May, 
concerning the definition of micro, small an d medium-sized enterprises (OJEU L 124 of 
20 May 2003).   Intermediate bodies are considered to be:  
 (a) Non-profit making public or private or ganizations with thei r own legal personality 
that habitually provide support services fo r innovation and modernization in various 
forms to small and medium-sized enterprises, and possess material and human resources to promote and guide such innovative projects. 
  (b) Entities the majority of the capital of which is State-owned and which habitually 
provide business support services for i nnovation and competitiveness in small and 
medium-sized enterprises, and promote projects in line with the measures of the programme (organizational innovation and advanced management, technological 
innovation and quality and projects of innova tion in collaboration) without pursuing 
profit making in such projects. 
 
                                                     
 
11 That is to say, grants within the meaning of  Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures. G/SCM/N/186/EEC/Add.25 
Page 30  
 
   This aid is contingent upon the beneficiaries meeting their tax and social security obligations, 
and the recipients must produce documents showing that the subsidized activ ity has been carried out 
and that the relevant costs have been paid.  7. Amount of the subsidy
 
 
 The budgets for 2007 and 2008 were €67,316,000 and €65,558,520 respectively. 
  The above-mentioned budgets were reallocated  on a territorial basis in favour of the 
Autonomous Communities in accordance with the provi sions of Article 86 of the General Budgetary 
Law 47/2003, with €51,850,865.25 for 2007 and €52,900,000 for 2008.  The difference between the 
amounts budgeted and the amounts allocated on a te rritorial basis to the Autonomous Communities 
went to finance supraregional projects in wh ich enterprises from several Autonomous Communities 
participate.  
8. Duration of the subsidy
 
  The programme will remain in e ffect during the period 2006-2013. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 The average subsidy received per project by  enterprises was €5,312 in 2006, €10,661.91 in 
2007 and €12,043.70 in 2008.   Given the aim of this subsidy programme a nd the amount received by the enterprises, it 
would seem that there is no appreciable effect on trade. 
 
L. I
NNOVATIVE BUSINESS GROUPS  
1. Title of the aid programme  
  Subprogramme of support for Innovative Business Groups.  
2. Period covered by the notification
 
  2007 and 2008.  3. Policy objective and/or purpose of the subsidy
 
 
 The aim of these subsidies is to encourag e the establishment and/or strengthening of 
collective business ventures that share the charact eristics, aims and requirements of Innovative 
Business Groups, which are defined as the combinati on of enterprises, training centres, research units, 
whether public or private, and other public or pr ivate agents involved in processes of collaborative 
exchange, directed to gaining advantages or benef its derived from the implementation of joint projects 
of an innovative nature. 
  At the invitation for applications in 2007 subs idies were only granted for the formulation of 
strategic plans.  However, in 2008 new lines of aid we re opened, so that aid could be granted for the 
following projects and activities: 
 
• Formulation of strategic plans .  The plans as formulated should provide detailed 
information on the objectives to be achiev ed by the group applying to become an 
Innovative Business Group, for the short and medium term, and on the enterprises  G/SCM/N/186/EEC/Add.25 
 Page 31 
 
 
  and bodies belonging to the group.  They should contain courses of action that will 
enable such objectives to be reached a nd their relationship with innovation and 
improvements in competitiveness through planned activities that are of common 
interest for the enterprises and bodies that make up the IBG.  
• Operation of the coordinating and management structures of the IBGs. 
• Implementation of specific activities  intended to strengthen the innovative potential 
and competitiveness of the IBG enterprises.  
• Implementation of partnership projects  designed to promote joint activities between 
different Spanish IBGs and between the la tter and groups or clus ters with similar 
characteristics located in other countries of the European Union, which normally 
derive from a common business policy in the various areas of business management, in particular, innovation and technology transfer.  
4. Legal authority
 
 
• Order ITC/2691/2006 of 2 August, setti ng out the regulatory basis, support 
arrangements and management  of support measures for Innovative Business Groups. 
• Order ITC/692/2007 of 20 March, invitin g applications for subsidies for the 
formulation of the strategic plans of Innovative Business Groups. 
• Order ITC/3808/2007 of 19 December, regula ting the Special Register of Innovative 
Business Groups. 
• Order PRE/756/2008 of 14 March, establis hing the regulatory basis for the granting 
of public science and technology subsidies for the implementation process of the 
coordination and internationalization of the system included in the National Scientific 
Research, Development and Technological Innovation Plan (2008-2011). 
• Order PRE/986/2008 of 8 April, establishing the application process for 2008 for the 
granting of subsidies by the National Programme of Networks within the 
implementation process for the coordination and internationalization of the system, 
included in the National Scientific R esearch, Development and Technological 
Innovation Plan (2008-2011). 
5. Form of the subsidy  
  Non-repayable subsidy.  
6. Beneficiaries:  to whom and how the subsidy is provided
 
  The following may receive subsidies:  
• For the formulation of Strategic Plans. 
- Collective bodies, groups or associations established as non-profit-making 
bodies, whose characteristics, aims a nd requirements correspond to those of 
the IBGs referred to in Section 3 of this report. 
 G/SCM/N/186/EEC/Add.25 
Page 32  
 
  - Non-profit-making entities that act as promoters of future IBGs. 
- Agencies and other public bodies that promote economic development at the 
local or Autonomous Community level and act as promoters of future IBGs. 
• Other forms of activity that comply with the terms of Order ITC/3808/2007 of 
19 December may also be beneficiaries. 
 Before receiving this subsidy, beneficiaries mu st show that they have complied with their tax 
and social security obligations.   They must also provide evidence that the ac tivity receiving the subsidy has been carried out. 
 7. Amount of the subsidy
 
 
 In response to invitations to apply €2, 224,164 was paid out in 2007, and €5,945,481 was 
granted in 2008.  8. Duration of the subsidy
 
 
 The programme covers the period 2007-2013.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Given the aim of this subsidy programme it woul d appear that there is no appreciable effect 
on trade. 
 
Information and communication technology infrastructures  
 
M. A
VANZA  INFRASTRUCTURE SUBPROGRAMME  
1. Title of the programme  
  Avanza  Infrastructure Subprogramme 
  State Aid Decision N73/2008  
2. Period covered by the notification
 
  2008  3. Policy objective and/or purpose of the subsidy
 
 
 This subprogramme comes within the Nati onal Scientific Research, Development and 
Technological Innovation Plan (2008-2011) (Order ITC/464/2008 of 20 February). 
  The aim of this programme is to provide the investment necessary to extend the coverage of 
telecommunications services, especially to rural areas, in similar conditions to those available in urban 
areas, as a means of promoting their economic deve lopment and the integration of their citizens and 
enterprises into the information society.   G/SCM/N/186/EEC/Add.25 
 Page 33 
 
 
   The activities covered by this infrastructure subprogramme are the following: 
 
• F1:  Development of the broadband and ot her telecommunications services in rural 
and isolated areas:  Projects designed to establish access infrastructures that will satisfy the demand for broadband by people liv ing in rural and isolated areas through 
the provision of technical and economic servi ces similar to those generally available 
throughout the national territory. 
• F2:  Rural high-capacity networks:  Action directed to the development of trunk 
network infrastructures to connect specific rural municipalities to the major data transmission networks through the assistance necessary for the provision of advanced 
telecommunications services. 
• F3:  Pilot projects for advanced telecommunications services:  Action directed to 
speeding up the introduction and further development of new broadband technologies 
and advanced telecommunications services in rural areas.  The aim is to test, in 
specific rural areas, technologies which are a bout to be introduced or which have 
already been introduced in the major cities,  but which are not planned to be extended 
in the short-term to rural areas. 
• F4:  Access networks for local public services:   Action directed to the establishment 
of public telecommunications networks at  the local level that give citizens access 
solely to public information services pr ovided by the public authorities.  Such 
networks will not be able to provide access to the Internet. 
• F5:  Dissemination and communication activiti es:  Activities so that citizens have 
sufficient information in order to unde rstand the advantages of broadband and 
advanced telecommunications services and th e opportunities available to citizens for 
access to the information society. 
4. Authority
 
  Order ITC/464/2008 of 20 February, published in the Official Journal of 26 February 2008, 
setting out the regulatory basis, support arrangements and management of the Telecommunications and Information Society Action Strategy under th e National Scientific Research, Development and 
Technology Innovation Plan (2008-2011). 
 
 Order ITC/2382/2008 of 5 August, published in  the Official Journal of 11 August 2008, 
amending Order ITC/464/2008 of 20 February, setting out the regulatory basis, support arrangements 
and management of the Telecommunications and Information Society Action Strategy under the 
National Scientific Research, Development and Technology Innova tion Plan (2008-2011). 
 
 An invitation for applications for subsidies under the programme was published in the Official Journal on 7 March 2008 (Resolution of 4 March 2008 of the Secretariat of State for 
Telecommunications and the Information Society).  
5. Form of the subsidy
 
  Repayable interest-free loans and non-repayable subsidy.
12 
 
                                                      
12 That is to say, grants within the meaning of  article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures. G/SCM/N/186/EEC/Add.25 
Page 34  
 
  6. To whom and how the subsidy is provided
 
  For the lines of action F1 and F2, the aid is provided for telecommunications operators 
(network operators and providers of electronic communications services).  
 For the lines of action F3, F4 and F5, the aid goes to: 
 
• Enterprises (only for li ne of action F3). 
• Local bodies as defined in Article 3 of Law 7/1985, of 2 April, regulating the basis of 
the local regime and the single-province Autonomous Communities that have taken over the powers of their respective Diputaciones Provinciales  (Provincial Councils).  
(For lines of action F3, F4 and F5). 
• Legally established non-profit-making bodies, provided that they cannot be 
recognized as enterprises.  The non-pr ofit-making status must be explicitly 
recognized in the statutes or operating rules of the entity.  (Only for lines of action F3 and F5). 
7. Subsidy per unit or in cases where this is not  possible, the total amount of the annual amount 
budgeted for that subsidy  
 
 The data below refer to the aid granted for projects under the lines of action financed through this subprogramme:  
ECONOMIC DATA AVANZA F1 
Total investment € Associated subsidy € Associated loan € 
8,699,801.25 2,153,200.81 4,697,892.68 
 
ECONOMIC DATA AVANZA F2 
Total investment € Associated subsidy € Associated loan € 
46,295,305.27 10,184,967.16 21,295,840.42 
 
ECONOMIC DATA AVANZA F3 
Total investment € Associated subsidy € Associated loan € 
288,433.00 170,786.30 0.00 
 
ECONOMIC DATA AVANZA F5 
Total investment € Associated subsidy € Associated loan € 
773,853.00 490,332.40 0.00 
 
 Line F4 received no aid under the application process in 2008.  8. Duration of the subsidy and/or any other tim e-limits attached to it, including date of 
inception/commencement  
 
 2008-2010   G/SCM/N/186/EEC/Add.25 
 Page 35 
 
 
  9. Statistical data permitting an assessmen t of the trade effects of the subsidy  
  No data are currently available on the effect of the programme on trade in the areas covered.  This is because the emphasis during the initial stag es was on building up the necessary infrastructure 
and it is still too soon for the programme to ha ve had any significant impact on the demand for 
telecommunications services or on economic activity in these regions. 
 N. P
ROGRAMME FOR THE EXTENSION OF BROADBAND ACCESS TO RURAL AND ISOLATED 
AREAS  (PEBA) 
1. Title of the programme  
 
 Programme for the Extension of Broadband Access to Rural and Isolated Areas (PEBA). 
  State and Decision N583/2004  
2. Period covered by the notification
 
 
2007 and 2008. 
 3. Policy objective and/or purpose of the subsidy
 
 
 This programme forms part of  the national broadband strategy  communicated to the European 
Commission in the framework of the coordinatio n mechanisms established under the eEurope Action 
Plan 2005.   The ultimate aim of the Programme for the Extension of Broadband Access to Rural and 
Isolated Areas is to achieve full coverage of na tional territory and make broadband available to all 
users, irrespective of the type of technology used in  each instance, and to achieve the highest effective 
penetration rate within the shortest possible time-frame. 
 4. Authority
 
 
 Order ITC/701/2005 of 17 March, published in the Official Journal of 22 March 2005, setting 
out the basis, support arrangements and management  and opening the call for applications for the 
Programme for the Extension of Broadba nd Access to Rural and Isolated Areas. 
 5. Form of the subsidy
 
 
 Repayable interest-free loans and non-repayable subsidies.13 
 6. To whom and how the subsidy is provided
 
  Aid is directly available to electronic comm unication network operators and service providers 
on an individual basis or as part of any kind of corporate group, provided that it has its own legal 
personality.  Pursuant to the Commission Recomme ndation of 6 May 2003 concerning the definition 
of micro, small and medium-sized enterprises (Official Journal of the European Union, L 124 of 20 May 2003), large and medium-sized enterprises are not eligible for aid during the restructuring 
period and must obtain individual authorization from the Commission. 
 
                                                     
 
13 That is to say, grants within the meaning of  Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures. G/SCM/N/186/EEC/Add.25 
Page 36  
 
   Indirect beneficiaries are applicants for broadband services in programme areas. 
  The programme was launched by means of an  open competitive application process published 
in the Official Journal.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
  In 2007, investments to a value of €28, 097,905.94 were made under the programme, while 
€2,424,777.38 was granted in subsidies and €6,508,418.25 in loans. 
 
 In 2006, investments amounting to a value of €21,821,999.02 were made under the programme, while €2,247,042.64 was granted in subsidies and €5,294,269.90 in loans. 
 8. Duration of the subsidy and/or any other tim e-limits attached to it, including date of 
inception/commencement  
 
 The programme covers the period 2005-2008.  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
• Degree of penetration of rural broadb and services achieved through the various 
technologies mentioned in the Programme for the Extension of Broadband Access: 
Technology Penetration of Service 
ADSL  21.53% 
WIMAX  1.07% 
Satellite  0.33% 
HFC  28% 
Average total  12.73% 
 
• Customers with broadband access through the Programme for the Extension of 
Broadband Access, in relation to the technology provided by that service: 
Technology Customers 
ADSL  155,065 
WIMAX  1,556 
Satellite  717 
HFC  1,665 
Total  159,003 
  G/SCM/N/186/EEC/Add.25 
 Page 37 
 
 
  Climate change 
 
O. ENERGY AND CLIMATE CHANGE ACTION STRATEGY  
1. Title of the programme  
 
 National Subprogramme.  National Subprogramme for energy efficiency, renewable energies 
and clean combustion technologies or emerging technologies.  2. Period covered by the notification
 
 
 2008. 
 3. Policy objective and/or purpose of the subsidy
 
  The main objective is to promote the creation of a sustainable energy model supplied by 
renewable energies and clean combustion technol ogies or emerging technologies, increasing energy 
efficiency throughout the energy cycle and mitigati ng the harmful effects that energy consumption has 
on climate change.  4. Authority
 
 
 Order PRE/968/2008 of 4 April, establishing the regulatory basis for the granting of public 
aid for research, development and innovation in ener gy and climate change in the framework of the 
National Scientific Research, Development and Technology Innova tion Plan (2008-2011). 
  Order PRE/2429/2008 of 14 August, establishi ng the application process for 2008 for the 
granting of public aid for research, development an d innovation in energy a nd climate change in the 
framework of the National Scientific Resear ch, Development and Technological Innovation 
Plan (2008-2011).  5. Form of the subsidy
 
 
 Non repayable subsidies14 and interest-free loans. 
 6. Beneficiaries:  to whom and how the subsidy is provided
 
  Support is available to enterprises, t echnology centres in cooperation, private 
non-profit-making research and development centr es, and groups and associations (temporary 
business associations (UTE), economic interest  groups (AIE), non-profit-making sectoral 
associations, as defined in Order PRE/690/2005 of 18 March 2005, amended by Order PRE/402/2006 
of 16 February.   This programme invites applications for its subsidies on an annual basis.  The competitive 
application process is open to anyone who wishes to  carry out research and development projects or 
activities in the technological areas already defined as of interest by the Programme.  
                                                     
 
14 That is to say, grants within the meaning of  Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures. G/SCM/N/186/EEC/Add.25 
Page 38  
 
  7. Subsidy per unit or total amount of the subsidy
 
  In 2008 subsidies amounting to €3,748,029 and loans amounting to €9,708,633.91 were granted.  
8. Duration of the subsidy
 
  The Energy and Climate Change Action strate gy remains in effect until the end of 2011. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Given the nature of this pr ogramme, which mainly concerns  technological development and 
which is open to enterprises in many industrial and se rvice sectors, the trade effects of the subsidies 
are minimal, since such aid is distributed  over a wide range of economic activities. 
 
P. PROGRAMME FOR THE PROMOTION OF RENEWABLE ENERGIES AND ENERGY EFFICIENCY  
1. Title of the programme  
  Renewable energy and energy efficiency support scheme.   State Aid Decision N188/2005, which integrates and standardizes the aid schemes provided 
for under Decisions N459/2001, N460/2001 (in turn amended by N339/2004) and N198/2002, 
granting aid in favour of thermal solar energy, in  favour of photovoltaic solar energy and for the 
financing of renewable energy sources and energy efficiency.  2. Period covered by the notification
 
 
 2007 and 2008.  3. Policy objective and/or purpose of the subsidy
 
  This programme is a scheme supporting energy  saving and renewable energy projects which 
embrace new concepts not present in the context of  previous programmes, such as investment in 
district energy services, energy efficiency in water transport and treatment, replacement of diesel oil by LPG, natural gas or hydrogen in urban transpor t, energy recovery from waste, production of 
bio-fuels, and use of geothermal, tidal and wave energy and fuel cells.  
4. Authority
 
  The legal basis for the scheme is the Official Credit Institute  (ICO) - Institute for Energy 
Diversification and Saving (IDAE) Financing Ag reement for the promotion of investment in 
renewable energies and energy efficiency.  
 This programme integrates the three aid schem es existing to date (in favour of solar and 
photovoltaic energy, renewable energy sources and energy efficiency) and authorized by the Commission for each period.   The scheme is compatible with environmental directives. 
  G/SCM/N/186/EEC/Add.25 
 Page 39 
 
 
  5. Form of the subsidy  
  Non-repayable subsidy for projects relating to thermal solar energy, photovoltaic solar energy 
and other renewable energies and energy efficiency , with facilitated access to investment for areas 
where project implementation is difficult. 
 
6. Beneficiaries:  to whom and how the subsidy is provided
 
  Aid is available to natural and legal persons from the public and private sectors. 
 
 The aid is paid through a bank transfer directly to the beneficiary. 
 7. Subsidy per unit or total amount of the subsidy
 
  In 2007, subsidies amounting to €0.2 million were granted. 
 In 2008, subsidies amounting to €0.1 million were granted. 
 8. Duration of the subsidy
 
  The programme will remain in effect until 31 December 2010.  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  The impact on public and private investments under the programme is in line with European 
environmental policies;  the effect of these subsid ies on trade, in particular on enterprise trading 
activities, is therefore minimal. 
 
Naval  
 
Q. S
HIPBUILDING SUBSIDIES  
1. Title of the programme  
 
 Shipbuilding subsidies 
  State Aid Decision N423/2004 on horizontal measures for shipbuilding, extended by Decisions N159/2007 and N292/2008.  
 State Aid Decision N33/2004 on temporary defensive measures for shipbuilding. 
 2. Period covered by the notification
 
  2007 and 2008.  
3. Purpose of the subsidy
 
  The fundamental aim of Community and national policy is to ensure that the shipbuilding sector remains competitive, in view of the difficult market situation and the need to encourage yards 
to make the necessary changes to improve competitiveness. 
 G/SCM/N/186/EEC/Add.25 
Page 40  
 
  4. Authority
 
  Article 9 and Article 10 of Royal Decree 442/1994 of 11 March, on sh ipbuilding subsidies 
and financing, as subsequently amended by Royal Decrees 1395/1995, 1562/1997, 2600/1998, 3452/2000, 1274/2003, 59/2005 and 1619/2007. 
 
5. Form of the subsidy
 
  Non-repayable subsidy  
6. To whom and how the subsidy is provided
 
  The subsidy is paid to shipyards which build metal-hull vessels of over 100 gross registered tonnes.  The temporary measures are for definitiv e contracts signed up to 31 March 2005.  The 
subsidy is provided once the cons truction or conversion contract has come into effect.  The 
corresponding payments are subject to provision being made in the annual budget, which means 
payments are considerably delayed.  7. Amount of the subsidy
 
  2007: €335,500.91 thousand 
 2008: €98,965.16 thousand 
 8. Duration of the subsidy
 
  The period of application of the programme finishes on 31 December 2011, in accordance 
with the Community Framework on State Aid to Shipbuilding (2003/C 317/06, extended by 
2006/C 260/03 and 2008/C 173/03).  9. Statistical data on the trade effects of the subsidy
 
  These subsidies are granted under Council Regul ation (EC) No. 1177/2 002 of 27 June 2002, 
concerning a temporary defensive mechanism for shipbuilding, and the amending Council 
Regulation (EC) No. 502/2004 of 11 March 2004, and under the Framework on State Aid to 
Shipbuilding (2003/C 317/06), extended to 31 December 2011.   The European Union has been losing its share of the world shipbuilding market in recent 
years, going from 16 per cent in 2005 to 8 per cent in 2006 and 6 per cent in 2007 and 2008, and 
consequently these subsidies have not increased the EU's share of the global market.  R. I
NTEREST SUBSIDY FOR SHIPBUILDING LOANS  
1. Title of the programme  
 
 Interest subsidy for shipbuilding loans 
 State Aid Decision N811/A/2002, extended by Decisions N760/2006 and N393/2008.  2. Period covered by the notification
 
 
 2007 and 2008. 
  G/SCM/N/186/EEC/Add.25 
 Page 41 
 
 
  3. Purpose of the subsidy  
  To allow shipbuilders contracting vessels from Spanish shipyards to obtain funding under the 
conditions set forth in the OECD Arrangement on Guidelines for Officially Supported Export Credits 
and the Sector Understanding on Export Credits for Ships in Annex 1 thereto. 
 
4. Authority
 
  Articles 11 to 14 of Royal Decree 442/1 994 of 11 March, on loans and funding for 
shipbuilding, as subsequently amended by Royal Decrees 1395/1995, 1562/1997, 2600/1998, 
3452/2000, 1274/2003, 59/2005 and 1619/2007.  Royal Decree 1511/2005 of 19 December, bringing 
the regulations on aid to shipbuilding into line  with the General Law on Subsidies 38/2003 of 
17 November.  5. Form of the subsidy
 
 
 Interest subsidy.  The subsidy has a ceiling of 300 basic points for contracts signed prior to 31 December 2000 and a ceiling of 100 basic points for later contracts.  6. To whom and how the subsidy is provided
 
 
 The interest subsidy is paid to financial en tities which grant loans to ship owners or third 
parties to finance the construction or conversion of vessels.   The subsidy is paid throughout the term of the loan (maximum 12 years), on the same date as 
that on which interest accrues and subject to th e provision being made in the annual budget. 
 
7. Amount of the subsidy
 
  Interest subsidies for ship building loans in 2007 and 2008 were as follows: 
  2007:  €86,531.52 thousand 
 2008:  €56,947.73 thousand 
 8. Duration of the subsidy
 
  The period of application of the programme  ends on 31 December 2011, in accordance with 
the Community Framework on State Aid to Shipbuilding (2003/C 317/06, extended by 2006/C 260/03 
and 2008/C 173/03).  9. Statistical data on the trade effects of the subsidy
 
  The European Union has been losing its share of the world shipbuilding market in recent 
years, going from 16 per cent in 2005 to 8 per cent in 2006 and 6 per cent in 2007 and 2008.  
Consequently, the subsidies have not increased the EU's share of the global market.  S. A
ID FOR TRAINING SHIPBUILDING WORKERS  
1. Title of the programme  
 
 Aid for training shipbuilding workers, co-fi nanced by the European Social Fund (ESF). 
  State Aid XT-7/03 and XT-109/2007. G/SCM/N/186/EEC/Add.25 
Page 42  
 
   
2. Period covered by the notification
 
  2007 and 2008.  
3. Policy objective and/or purpose of the subsidy
 
  The subsidies are aimed at upgrading, through ongoing training, the qualifications of shipbuilding workers.  The objective is to enhan ce the skills and personal development of workers 
employed at enterprises in this sector, a majority of which are SMEs. 
 
4. Authority
 
  Resolution CN.4.02 F.S.E. of 8 May 2001 of th e General Directorate of Technology Policy of 
the Ministry of Science and Technology (now the Mi nistry of Industry, Tourism and Trade), and the 
Shipbuilding Sector Management Circular of 30 May 2001. 
  Order ITC/3287/2007 of 7 November of the Ministry of Industry, Tourism and Trade, establishing the regulatory basis for the granting of aid, for training projects and activities in the shipbuilding sector.  
 Commission Regulation (EC) No. 68/2001 on State aid to training, as amended by 
Regulation (EC) 363/2004 and Regulation (EC) 1976/2006.  5. Form of the subsidy
 
 
 Non-repayable subsidy 
 6. Beneficiaries:  to whom and how the subsidy is provided
 
  Enterprises or groups of enterprises in the sh ipbuilding and auxiliary industrial sectors, and 
public, semi-public or private organizations with th eir own legal personality which habitually provide 
training services to enterprises. 
  The final recipients of the aid provided by this programme are workers employed by 
enterprises in the Spanish ship building industry,  which encompasses both shipyards and the auxiliary 
enterprises that contribute to the sh ip design and construction process. 
 
7. Subsidy per unit or total amount of the subsidy
 
  2007:  € 3.56 million  2008:  € 2.75 million  
8. Duration of the subsidy
 
  The programme remains in effect until 2013.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Given that the aim of this aid programme is to train shipbuilding workers, the subsidies are 
not considered to have any effects on trade.   G/SCM/N/186/EEC/Add.25 
 Page 43 
 
 
  IV. REGIONAL SUBSIDIES 
A. REINDUSTRIALIZATION OF DECLINING INDUSTRIAL AREAS  
1. Title of the subsidy programme  
  Regional investment aid scheme to promote th e conversion of declining industrial areas in 
certain assisted regions (re industrialization measures). 
  State Aid Decision XR 70/2007.  2. Period covered by the notification
 
 
 2007 and 2008.  3. Policy objective and/or purpose of the subsidy
 
 
 The aim of the scheme is to encourage re gional development through the promotion of 
reindustrialization measures for declining industrial areas in assisted regions according to the regional 
aid map approved by the EU for Spain for the pe riod 2007-2013.  Industrially depressed areas are 
characterized by a significant loss of productive employment capacity in both the public and the private sector.  
4. Authority
 
  The Spanish regional aid map for the peri od 2007-2013, establishing the regions where 
regional development aid may be considered compa tible with the common market in accordance with 
the derogation provided for in Article 87.3(a) of  the EC Treaty, as approved by the European 
Commission. 
  Order ITC/3098/2006 of 2 October, establishi ng the regulatory basis for reindustrialization 
aid.  This Order was amended by Order ITC/ 643/2007 of 7 March (Official Journal of 
19 March 2007) and by Order ITC/3009/2007 of 10  October (Official Journal of 17 October 2007). 
 
 General Secretariat of Industry Resoluti ons of 27 November 2007 and 16 October 2007 
publishing the corresponding application procedures for this aid programme for 2007 and 2008. 
 5. Form of the subsidy
 
 
 Aid is granted in the form of interest-free loans.  Such loans span maximum period of 
15 years and may not exceed 50 per cent of the financeable budget.  The maximum repayment period is five years.  6. To whom and how the subsidy is provided
 
 
 Industrial enterprises investing in assisted re gions, although exceptions apply in sectors with 
specific regulations.  In order to apply for aid under this scheme, the beneficiary must fulfil certain 
requirements, one of which is that at least 25 per ce nt of the total of the investment project must be 
financed by the beneficiary using its own equivalent non-subsidized resources. 
 
7. Total amount budgeted  
  In the financial year 2007, interest-free loans amounting to €201,312 thousand. G/SCM/N/186/EEC/Add.25 
Page 44  
 
   In the financial year 2008, interest-free loans amounting to €282,170 thousand. 
 8. Duration of the subsidy
 
  The programme remains in effect until 31 December 2013. 
 
9. Effects on trade
 
  Given that the supported activities are aimed at financing investments that create alternative 
employment in other enterprises or in depressed  sectors, subsidies are generally granted to 
newly-established enterprises for activities which are therefore small in scale and widely dispersed.  
Consequently, such subsidies have virtually no trade effects.  B. R
EGIONAL ECONOMIC INCENTIVES SCHEME  
1. Title of the programme  
 
 Regional Economic Incentives Scheme  2. Period covered by the notification
 
  2007 and 2008. 
 
3. Policy objective and/or purpose of the subsidy
 
  The purpose is to promote economic development in the most disadvantaged areas.  The objective of regional incentives is to foster bus iness activity and to encourage firms to locate 
themselves in previously determined areas, so as to reduce economic disparities in Spanish territory, 
secure a more equitable spread of economic activ ity and strengthen the potential for internally 
generated development in  the different regions. 
 4. Authority
 
 
 A mandate under Article 40.1 of the Spanish C onstitution, which lays down the obligation for 
authorities to foster economic conditions for a more  equitable distribution of regional income.  
Similarly, Article 138 thereof provides that the St ate shall establish a suitable and fair economic 
balance between different parts of Spanish territory.  
 The legislative basis is: 
  Law 50/85 of 27 December, on regional economic incentives to remedy inter-regional economic imbalances.   Royal Decree 899/2007 of 6 July, approvi ng the new Development Regulations of 
Law 50/1985 on regional incentives. 
  The regional incentives scheme was approved by a European Commission Decision communicated to the Spanish Government in a letter dated 1 June 1987.  
 Pursuant to this authorization, 13 Royal Decrees delimiting the economic promotion areas 
were promulgated.  The approval of Royal Decree 899/2007, together with all the amendments of the 
Royal Decrees delimiting the areas, made it necessary to approve a new Royal Decree of delimitation for each of the Autonomous Communities in line wi th the new Regulations and the new Community  G/SCM/N/186/EEC/Add.25 
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  directives and within the limits approved by Eu ropean Commission State Aid Decision N626/2006 of 
20 December 2006.  5. Form of the subsidy
 
 
 Non-repayable subsidies15, granted to productive investment s and calculated as a variable 
percentage, depending on the project, of the investment approved by the authorities.  6. Beneficiaries:  to whom and how the subsidy is provided
 
 
 Subsidies are granted to private enterprises. 
  Once approved, the subsidy is notified individua lly to the parties concerned in an individual 
resolution establishing the basic project data, including  the name of the recipient enterprise that has 
applied for it. 
 
 The aid is paid once the corresponding Au tonomous Community has issued a report 
substantiating full execution of the project and fu lfilment, within the specified periods, of the 
conditions required in the individua l resolution, accepted beforehand by the beneficiary.  During the 
period of application, the beneficiary may apply to the Autonomous Community for payments of the subsidy on account, as soon as evidence is produced that  the investment has been made, provided that 
this is authorized in the corresponding individual resolution granting the aid. 
 7. Subsidy per unit or total amount of the subsidy
 
  Total amount of the subsidy: 
 
 2007:  €278,624,672  2008:  €294,999,177  8. Duration of the subsidy
 
 
 The scheme will continue as long as the reason fo r introducing it, namely the imbalance in 
regional development, persists.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 With regard to the statistical data permitting an assessment of trade effects, it should be noted 
that, since the subsidies take the form of capital for productive investment in disadvantaged regions 
and are authorized by the European Commission, th ey are not regarded as jeopardizing the principle 
of free competition.  
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15 That is to say, grants within the meaning of  Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures.