WORLD TRADE  
ORGANIZATION  G/SCM/N/186/EEC/Add.21 
23 December 2009 
 
 (09-6564) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1  
of the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures  
 
EUROPEAN COMMUNITIES 
 
Addendum  
 
  The following addendum to the notification of the European Communities
* relates to subsidy 
programmes of Portugal . 
 
_______________ 
 
                                                      
* On 1 December 2009, the Treaty of Lisbon amendi ng the Treaty on European Union and the Treaty 
establishing the European Comm unity (done at Lisbon, 13 Decembe r 2007) entered into force.  
On 29 November 2009, the WTO received a Verbal Note  (WT/L/779) from the Council  of the European Union 
and the Commission of the European Communities stating that, by virtue of the Treaty of Lisbon, as of 
1 December 2009, the European Union replaces and succeeds the European Community. G/SCM/N/186/EEC/Add.21 
Page 2  
 
   
PORTUGAL 
 
TABLE OF CONTENTS 
 
Page 
 
A. COMPETE – OPERATIONAL PROGRAMME FOR COMPETITIVENESS 
FACTORS ........................................................................................................................ .........3  
1. Title of the Programme ......................................................................................................... ...3 
2. Period covered by the notification...........................................................................................3  
3. Policy objective............................................................................................................... ...........3  
4. Background and Authorit y of the Programme ......................................................................3  
5. Form of the subsidy ............................................................................................................ ......3  
6. Beneficiary and conditions of th e concession of the subsidy.................................................3  
7. Total and annual amount paid during the period 2007-2008 ...............................................4  
8. Duration of the Programme.....................................................................................................4  
9. Statistical data that allow the evaluation of the effects of the subsidy on trade..................4  
B. PRIME - INCENTIVES PROGRAMME FOR THE MODERNISATION OF 
ECONOMIC ACTIVITIES .....................................................................................................5  
1. Title of the Programme ......................................................................................................... ...5 
2. Period covered by the notification...........................................................................................5  
3. Purpose and objectives of the Programme .............................................................................5  
4. Background and Authorit y of the Programme ......................................................................5  
5. Form of the subsidy ............................................................................................................ ......5  
6. Beneficiary and conditions of th e concession of the subsidy.................................................5  
7. Total and annual amount paid during the period 2000-2006 ...............................................6  
8. Duration of the Programme.....................................................................................................6  
9. Statistical data that allow the evaluation of the effects of the subsidy on trade..................6  
C. SIRME – NATIONAL SCHEME OF INCENTIVES FOR ENTERPRISES 
RESTRUCTURE .................................................................................................................... ..7 
1. Title of the Programme ......................................................................................................... ...7 
2. Period covered by the notification...........................................................................................7  
3. Policy objective and/or pu rpose of the subsidy ......................................................................7  
4. Background and authority of the subsidy ..............................................................................7  
5. Legislation under which it is granted......................................................................................7  
6. Form of the subsidy a nd budget expenditure.........................................................................7  
 
  G/SCM/N/186/EEC/Add.21 
 Page 3 
 
 
  A. COMPETE – OPERATIONAL PROGRAMME FOR COMPETITIVENESS 
FACTORS 
1. Title of the Programme  
 COMPETE – Operational Programme for Competitiveness Factors 
 
2. Period covered by the notification  
 2007-2008 
 3. Policy objective
 
 The central objective of the Programme is to stimulate economic growth to levels that will 
produce a sustained recovery of the Portuguese econom y towards real convergence with the European 
Union – based on the competitiveness of the count ry and its regions, enterprises and geographical 
areas.   At the same time, the following specific objectives were established: 
 
• Qualification of the productive fabric  by upgrading specialisation profiles and 
business models; 
 
• Better adjustment of the Portuguese economy to international markets by increasing 
production for trade or internationalisation; 
 
• Qualification of the Public Administration system and State action efficiency through 
modernisation of the Public Administration and promotion of a public service culture 
centred on citizens and enterprises; 
 
• Promotion of an economy grounded on knowledge and innovation through 
stimulating scientific and technological deve lopment and fostering entrepreneurship. 
 4. Background and Authority of the Programme
 
 COMPETE is financed within the European Co mmunity Support Framework for the eligible 
community structural interventions for objective nº 1 of the structural funds during the period 2007-
2013.  The Programme was approved by th e European Commission on 5 October 2007. 
 5. Form of the subsidy
 
 The following subsidy modalities are:  non-reim bursable subsidies (grants);  reimbursable 
subsidies, that may be substituted by the payment of interests or other expenses of a bank loan of the 
same value;  venture capital interventions. 
 6. Beneficiary and conditions of  the concession of the subsidy
 
 The beneficiaries of the Programme are: 
 
• Central and local public administration, areas and Committees of tourism and other 
public entities; 
 G/SCM/N/186/EEC/Add.21 
Page 4  
 
  • Entities of the scientific and technological system, associative entities and other 
entities with specific compet ences in the development either of areas of economic 
activity and/or of important territorial intervention; 
 
• Companies specialised in the development of the venture capital and guarantee and 
counter-guarantee funds directed exclusively to micro-companies and SME. 
  The projects submitted by the beneficiaries of each measure are evaluated according to a group of specific selection criteria previously establishe d.  Therefore, in case of positive appreciation, 
the subsidies are approved by the Minister of the Economy, and the payments made in line with the 
actual investment process. 
 7. Total and annual amount paid during the period 2007-2008
 
Thousand Euros 
Axis Type of Aid Public Expenditure 
(2007-2008) 
Axis 1 – Knowledge and 
Technological Development Non State Aid / 
R&D 2,045 
Axis 2 – Innovation and Renewal of 
the Business Model and 
Specialization Pattern Regional Aid / 
Minimis 35,096 
Axis 3 – Innovation Financing and 
Risk Sharing Minimis / 
Venture Capital 56,117 
Axis 4 - Efficiency and Quality in 
Public Administration Non State Aid 0 
Axis 5 - Networks and Collective 
Actions for Business Development Non State Aid 0 
Axis 6 - Technical Assist ance Non State Aid 136 
Total  93,395 
 
8. Duration of the Programme  
  2007-2013  
9. Statistical data that allow the evalua tion of the effects of the subsidy on trade
 
 No statistical data is available to allow the evaluation of possible effects of the subsidies on 
trade.   However, it should be underlined that a large pe rcentage of the total subsidies is directed to 
SME in activities related with local markets (non-trad able goods), as well as to entities not involved in 
market transactions (e.g. non-profitable organisations).  G/SCM/N/186/EEC/Add.21 
 Page 5 
 
 
   
B. PRIME - INCENTIVES PROGRAMME FOR THE MODERNISATION OF 
ECONOMIC ACTIVITIES 
1. Title of the Programme  
 PRIME - Incentives Programme for the Modernisation of Economic Activities. 
 
2. Period covered by the notification  
 2000-2008. 
 3. Purpose and objectives of the Programme
 
 PRIME was created to stimulate Portuguese companies developing their activities in the 
industrial (building construction included), touris tic, commercial and services sectors, and to foster 
their productivity and competitiven ess within the global market: 
 
• To reinforce companies competitiveness and their participation in the global market; 
 
• To foster potential development areas. 
 4. Background and Authority of the Programme
 
 PRIME is financed within the European Co mmunity Support Framework for the eligible 
community structural interventions for objective nº1 of the structural funds during the period 2000-06.  
The Programme was initially approved by the European Commission on 11 July 2000 [Commission 
Decision C (2000) 1774] and had the last deci sion on 28 December 2005 [Commission Decision 
C (2005) 6048].   At the national level, the Programme is regulat ed by the Decree-Law n.º 70-B/2000 of 5 May. 
 
5. Form of the subsidy
 
 The following subsidy modalities are:  non-reim bursable subsidies (grants);  reimbursable 
subsidies that may be substituted by the payment of interests or other expenses of a bank loan of the 
same value;  venture capital interventions.  
6. Beneficiary and conditions of  the concession of the subsidy
 
 The beneficiaries of the Programme are: 
 
• Companies within the industrial, constructi on, touristic, trade and services sectors and 
independent inventors; 
• Central and local public administration, ar eas and Committees of tourism and other 
public entities; 
• Entities of the scientific and technological  system, associative entities and other 
entities with specific competences in the de velopment either of areas of economic 
activity and/or of important territorial intervention; G/SCM/N/186/EEC/Add.21 
Page 6  
 
  • Companies specialised in the development of the venture capital and guarantee and 
counter-guarantee funds directed exclusively to micro-companies and SME. 
 The projects submitted by the beneficiaries of each measure are evaluated according to a 
group of specific selection criteria previously establishe d.  Therefore, in case of positive appreciation, 
the subsidies are approved by the Minister of the Economy, and the payments made in line with the 
actual investment process. 
 7. Total and annual amount paid during the period 2000-2006
 
Thousand Euros 
Axis Public Expenditure Structural Funds National Expenditure 
 (1) = (2)+(3) (2) (3) 
Axis 1 – Enterprise Stimulation 2,380,423 1,840,892 539,531 
Axis 2 – Qualification of 
Human Resources 303,959 228,079 75,880 
Axis 3 – Stimulation of 
Business Environment 874,799 687,335 187,464 
Technical Assistance 44 ,315 31,440 12,875 
Total 3,603,496 2,787,747 815,750 
 
Thousand Euros 
Axis Public Expenditure Structural Funds National Expenditure 
 (1) = (2)+(3) (2) (3) 
Regional Aid 1,720,962 1,290,326 430,636 De Minimis Aid 330,076 247,707 82,368 
R&D Aid 81,629 55,102 26,527 
Training Aid 303,959 228,079 75,880 
State Aid Total 2,436,626 1,821,215 615,411 
Non State Aid 1,166,871 966,532 200,339 
Total 2,603,496 2,787,747 815,750 
 
8. Duration of the Programme  
 2000-2008 
 9. Statistical data that allow the evalua tion of the effects of the subsidy on trade
 
 No statistical data is available to allow the evaluation of possible effects of the subsidies on 
trade.   However, it should be underlined that a large pe rcentage of the total subsidies is directed to 
SME in activities related with local markets (non-trad able goods), as well as to entities not involved in 
market transactions (e.g. non-profitable organisations). 
  G/SCM/N/186/EEC/Add.21 
 Page 7 
 
 
  C. SIRME – NATIONAL SCHEME OF INCENTIVES FOR ENTERPRISES 
RESTRUCTURE 
1. Title of the Programme  
SIRME – Sistema de Incentivos à Modernização Empresarial 
National scheme of incentives for enterprises restructure 
 
2. Period covered by the notification  
 2007-2008 
 3. Policy objective and/or purpose of the subsidy
 
 Modernization, industrial restructuring and financial consolidation of enterprises. 
 4. Background and authority of the subsidy
 
 IAPMEI – Instituto de Apoio às Pequenas e Mé dias Empresas e ao Investimento – National 
Institute to SME and Investment. 
 
5. Legislation under which it is granted  
 Resolução Conselho de Ministros nº 40/98 19th February 
 Dossier State Aid N 8/2000  6. Form of the subsidy and budget expenditure
 
Million Euros 
 Expenditure 
2007 0.15 
2008 0.08 
 
 
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