WORLD TRADE
ORGANIZATIONG/SCM/N/71/EEC/Add.5
18 December 2001
(01-6186)
Committee on Subsidies
and Countervailing MeasuresOriginal:  French
SUBSIDIES
New and Full and Updating Notifications Pursuant to Article XVI:1 of the
GATT 1994 and Article 25 of the SCM Agreement
EUROPEAN COMMUNITIES
Addendum
The following addendum to the notification of  the European Community relates to subsidy
programmes of France .G/SCM/N/71/EEC/Add.5
Page 2
FRANCE
TABLE OF CONTENTS
Page
I. SME SCHEMES .................................................................................................................. .3
1. Regional Premium for the Creation of Enterprises (PRCE) ............................................3
2. Regional Employment Premium (PRE)..............................................................................4
3. Regional Advisory Assistance F und (FRAC) .....................................................................5
4. SME Development Fund (FDPME) ....................................................................................6II. REGIONAL SCHEMES ......................................................................................................7
A. M
ETROPOLITAN FRANCE ........................................................................................................7
1. Tax reduction for new enterprises.......................................................................................7
2. Enterprise zones............................................................................................................. .......8
3. Land-use Management Premium (PAT) ............................................................................9
4. Mining reconversion programme (SOFIREM - FINORPA) ..........................................105. Industrial Development Company (SODIE) ....................................................................11
B. C
ORSICA ............................................................................................................................... .13
1. Tax exemption for new activity .........................................................................................13
2. Tax exemption for new enterprises ...................................................................................133. Tax exemption on profits of up to F400,000 .....................................................................14
C. F
RENCH OVERSEAS DEPARTMENTS (FOD S).........................................................................15
1. Long-term tax treatment....................................................................................................15
2. VAT deduction for certain exempted products................................................................173. Reduction in payr oll tax ra tes............................................................................................17
4. Deduction of invested income and profits.........................................................................18
5. Temporary tax exemption for creation of activities ........................................................19
6. Reduced taxation of operating results...............................................................................207. Premium for job creation in the Overseas Departments.................................................21
D. U
RBAN AREAS IN DIFFICULTY ..............................................................................................23
1. Measures on behalf of Urban Free Zones (ZFU) .............................................................23
III. R&D SCHEMES................................................................................................................ .24
1. Tax credit to promote research .........................................................................................242. Research and Technology Fund (FRT).............................................................................24
3. Industrial Innovation Fund (FII) ......................................................................................26
4. National Agency for the Pr omotion of Rese arch ( ANVAR) ............................................27
5. ATOUT-PUMA................................................................................................................... 29
6. Aid to Research Institutions in the Civil Aviation Sector ...............................................30
7. Aid to Civil Aviation Research and Development............................................................30G/SCM/N/71/EEC/Add.5
Page 3
I. SME SCHEMES
1. Regional Premium for the Creation of Enterprises (PRCE)
(a) Period covered by the notification
2000
(b) Policy objective of aid scheme
Creation of enterprises and economic development.
(c) Legal basis
Articles L.1511-2 and R.1511-5 to R.1511-8 of the General Code on Local Authorities.
(d) Form of aid
Subsidy of a maximum of F200,000 for enterprises being created.
(e) Beneficiaries of the aid and allocation mechanism
- Beneficiaries :  Enterprises created less than 12 months before submission of the
application.
- Allocation mechanism :  The premium is paid directly to the enterprises by the local
authorities and in particular the regions, which are responsible for the implementation
of this mechanism.
- Conditions :  Enterprises must undertake to create a minimum number of permanent
jobs by recruiting persons linked to the enterprise by an open-ended employment
contract.
(f) Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating, if possible, the average subsidy per unit in the previous year)
- Total amount for 2000 :  no precise data is available, but it should be comparable to
the total amount for 1999, i.e. F63 million (€10 million).
(g) Duration of the subsidy and/or any other time-limits attached to it
A single subsidy payable in several instalments.
(h) Statistical data for assessing the trade effects of the subsidy
No precise data can be provided.  However, since the total amount of aid granted annually
and the maximum amount of aid that can be granted to each enterprise are low, the scheme has no
significant impact on trade.G/SCM/N/71/EEC/Add.5
Page 4
2. Regional Employment Premium (PRE)
(a) Period covered by the notification
2000
(b) Policy objective of aid scheme
Job creation and economic development.
(c) Legal basis
Articles L.1511-2 and R.1511-9 to R.1511-14 of the General Code on Local Authorities.
(d) Form of aid
Maximum subsidy of F10,000, 20,000 or 40,000 for enterprises for each job created, by area
considered, up to a ceiling of 30 jobs.  The premium granted for an operation may not be more than
twice the equity and current accounts of the partners in the company or the individual entrepreneur's
contribution.
(e) Beneficiaries of the aid and allocation mechanism
- Beneficiaries :  Enterprises in any sphere of activity, whose turnover is less than
F300 million, or more than 50 per cent of whose capital is held by an enterprise
whose consolidated turnover is less than F300 million.
- Allocation mechanism :  The premium is paid directly to the enterprises by the local
authorities and in particular the regions, which are responsible for the implementation
of this mechanism with respect to any programme for the creation, extension, take-
over or conversion of an enterprise, whatever its previous or anticipated workforce.
- Conditions :  The premium is calculated on the basis of the number of jobs created or
maintained in the enterprise.  The creation or maintenance of a permanent job must be
the result of recruitment or maintenance of a person linked to the enterprise by an
open-ended employment contract.
(f) Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating, if possible, the average subsidy per unit in the previous year)
- Total amount for 2000 :  no precise data is available, but it should be comparable to
the total amount for 1999, i.e. approximately F63 million (€10 million).
(g) Duration of the subsidy and/or any other time-limits attached to it
No more than one premium can be granted to the same beneficiary during a given period of
three years.G/SCM/N/71/EEC/Add.5
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(h) Statistical data for assessing the trade effects of the subsidy
No precise data can be provided.  However, since the total amount of aid granted annually
and the maximum amount of aid that can be granted to each enterprise are low, the scheme has no
significant impact on trade.
3. Regional Advisory Assistance Fund (FRAC)
(a) Period covered by the notification
2000
(b) General policy objective and/or purpose of the subsidy (or aid scheme)
To foster the development of SMEs by encouraging them to call on outside consultants and to
internationalize certain advisory functions yet to be created (recruitment of professional staff).
(c) Legal basis (reference, date)
Authorization by the Commission on 5 January 1999.  Ministerial Circular of 3 August 1989
on arrangements for the use of decentralized loans for the environment and the competitiveness of
enterprises.
(d) Form of subsidy (i.e. grant, loan, tax concession, etc.)
Direct subsidization of the enterprise as regards:- Recourse to consultants in enterprises with inadequate internal operational services
(FRAC);
- recourse to technical advice provided by public or private laboratories, research
centres, etc.:  Regional Technology Transfer Assistance Fund (FRATT);
- internal advisory service involving the creation of new professional posts within the
enterprise:  Professional Staff Recruitment Assistance (ARC).
(e) Beneficiaries and allocation mechanism (calculation method and conditions)
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) :
SMEs from all sectors, in accordance with specific support criteria.
(f) Subsidy per unit, or where this is not possible, total amount or annual amount budgeted for
that subsidy (indicating, if possible, the average subsidy per unit in the previous year)
- Total amount for 2000 :  €34.73 million for all three procedures.G/SCM/N/71/EEC/Add.5
Page 6
Maximum level of aid:
Type of counselling Level
FRAC (short) €3,800 (F25,000);  up to a
maximum of 80% of
consultancy fees.Except for the ECSC,
shipbuilding, synthetic fibre,
automobile manufacturing,
fisheries and agricultural
sectors.
FRAC €30,500 (F200,000);  up to a
maximum of 50% of the cost of
the advisory service provided or
the salary, including social
security contributions, of thenewly appointed employee.
(g) Duration of the subsidy and/or any other time-limits attached to it
Permanent arrangement funded on a yearly basis under the Finance Law.
(h) Statistical data for assessing the trade effects of the subsidy
Since the purpose of the programme is to improve the management of enterprises, it has no
impact on production costs and consequently does not affect trade.
4. SME Development Fund (FDPME)
(a) Period covered by the notification
Notification by the French authorities on 1 March 2000.
Authorization by the Commission on 5 July 2000.
(b) Policy objective and/or purpose of the subsidy (or aid scheme)
Assistance to SMEs engaging in technological and innovatory material investments,
intangible investments, installation and organizational work and studies relating to such material
investments.
(c) Legal basis (reference, date)
Circular of 31 August 2000.
Programme contracts between the State and the regions.
(d) Form of subsidy (grant, loan, tax concession, etc.)
Subsidy.
(e) Beneficiaries of the aid and allocation mechanism (calculation method and conditions)
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) :
Financially sound enterprises that come within the EU definition of SMEs,
i.e. enterprises:
- not employing more than 250 persons;G/SCM/N/71/EEC/Add.5
Page 7
- no more than 25 per cent of whose equity or voting rights are held by one or more
enterprises not meeting the above criteria.  Shares held by public holding companies,
companies with venture capital and, provided they do not exercise any control,
institutional investors, are not taken into consideration.
- Conditions
The maximum rate of contribution is as follows:
Type of area Small enterprise Medium-sized enterprise
Unassisted area 15% gross 7.5% gross
Assisted area/PAT* 11.5% gross 21.5% gross
Assisted area/PAT 17% 27% gross
Assisted area/PAT area 23% gross 33% gross, up to a ceiling of 30% net
Assisted area / FOD 65% net 75% net
* Land-use Management Premium
(f) Subsidy per unit, or where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating, if possible, the average subsidy per unit in the previous year)
- Total amount for 1999 :  €184.02 million covering 2,992 projects.
- Total amount for 2000 :  €95.47 million covering 1,844 projects.
(g) Duration of the subsidy and/or any other time-limits attached to it
Scheme valid until 2006.
(h) Statistical data for assessing the trade effects of the subsidy
The aid is intended to compensate for structur al disadvantages associated with the size of
small enterprises.  It has no effect on trade.
II. REGIONAL SCHEMES
A. METROPOLITAN FRANCE
1. Tax reduction for new enterprises
Profits tax exemption for new enterprises set up in land-use management areas, priority rural
development areas and urban redevelopment areas.
(a) Period covered by the notification
2000G/SCM/N/71/EEC/Add.5
Page 8
(b) Policy objective and/or purpose of the subsidy (or aid scheme)
To promote the creation of new enterprises in areas with geographical, economic or social
disadvantages.
(c) Legal basis (reference, date)
Article 44 sexies  of the General Taxation Code deriving from Article 14A of Law
No. 88-1149 of 23 December 1998 and last amended by Article 92-I of Law No. 99-1172 of
30 December 1999.
(d) Form of subsidy (grant, loan, tax concession, etc.)
Tax concession.  Exemption from profits tax for two years, followed by a reduction on profits
earned over the next three years (75 per cent, then 50 per cent, then 25 per cent).  This tax benefit may
on no account exceed €225,000 over a 36-month period.
(e) Beneficiaries of the aid and allocation mechanism (calculation method and conditions)
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) :
Legally and economically new enterprises (excluding the resumption or extension of
pre-existing activities), at least 50 per cent of whose share capital is held by naturalpersons and which are set up in specified areas.
- Allocation mechanism :  By operation of law.
- Conditions :  Genuinely new enterprises set up in eligible areas, whose headquarters
and all activities and means of operation are established in that area.
(f) Subsidy per unit, or where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating, if possible, the average subsidy per unit in the previous year)
- Total amount for 2000 :  F1,200 million
(g) Duration of the subsidy and/or any other time-limits attached to it
Five years;  applicable to enterprises set up by 31 December 2004.
(h) Statistical data for assessing the trade effects of the subsidy
Not available.
2. Enterprise zones
(a) Period covered by the notification
2000
(b) Policy objective and/or purpose of the subsidy (or aid scheme)
Revival of areas seriously affected by the loss of jobs in industry.G/SCM/N/71/EEC/Add.5
Page 9
(c) Legal basis (reference, date)
Article 208 quinquies  of the General Taxation Code deriving from Article 22 of Ordinance
No. 86-1113 of 15 October 1986.
(d) Form of subsidy (grant, loan, tax concession, etc.)
Tax concession in the form of exemption from corporation tax for ten years.
(e) Beneficiaries and allocation mechanism (calculation method and conditions)
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) :  Legal
entitities subject to corporation tax that are created in order to carry out an industrial
or commercial enterprise in one of the eligible zones.
- Allocation mechanism :  By operation of law.
- Conditions :  The headquarters, activities and means of operation of the legal entity
must be located in one of the eligible zones.
(f) Subsidy per unit, or where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating, if possible, the average subsidy per unit in the previous year)
- Total amount for 2000 :  F2,400 million
(g) Duration of the subsidy and/or any other time limits attached to it
Ten years, but the zones have been closed since 1992.
(h) Statistical data for assessing the trade effects of the subsidy
In respect of the financial year ending in 1999, as many as 69 industrial and commercial
enterprises, with a total of 5,040 employees, were benefiting from the scheme provided for under
Article 208 quinquies  of the General Taxation Code.
3. Land-use Management Premium (PAT)
(a) Period covered by the notification
2000
(b) Policy objective and/or purpose of the subsidy (or aid scheme)
Development of employment-generating activities in the regional aid zones.
(c) Legal basis
In 2000, the French Government no longer had any Commission-endorsed legal basis and was
hence unable to rule on PAT applications.  Pursuant to the new EU legislation in force since1 January 2000, the European Commission nevertheless authorized France to process, in 2000,
applications which had reached the Délégation à l’Aménagement du Territoire et à l’Action Régionale
(DATAR) by 31 December 1999 but on which no decisions on premium allocations could be taken in
1999 owing to processing time-limits.  In this context, the Comité interministériel d'aide à la
localisation des activités (CIALA) met only once during 2000.G/SCM/N/71/EEC/Add.5
Page 10
(d) Form of subsidy (grant, loan, tax concession, etc.)
Subsidy.
(e) Beneficiaries and allocation mechanism (calculation method and conditions)
- Beneficiaries :  All enterprises manufacturing products directly related to the
processing of a natural or semi-finished product or providing services to enterprises,
such as industry-related, computer, management, call centre, engineering, study and
design services.  Companies undertaking research and development programmes are
also eligible.
- Allocation mechanism :  Decision taken by the ministry responsible for land-use
management on the advice of an interministerial committee.
- Conditions :  The programmes in question must lead, over a period of five years, to
the creation of more than 15 CDI jobs and an investment of more than F15 million.
(f) Subsidy per unit, or where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating, if possible, the average subsidy per unit in the previous year)
- Total amount for 2000 :  In view of the situation outlined in paragraph (c) above, the
premiums allocated amounted to F43 million.
(g) Duration of the subsidy and/or any other time-limit attached to it
Maximum five years.
(h) Statistical data for assessing the trade effects of the subsidy
The premiums allocated covered 1,538 jobs under projects involving an estimated overall
investment of F863 million.
4. Mining reconversion programme (SOFIREM - FINORPA)
(a) Period covered by the notification
2000
(b) Policy objective and/or purpose of the subsidy (or aid scheme)
Reconversion of mining areas.
(c) Legal basis (reference, date)
Commission Decision NN 2/89 of  15 June 1989 concerning the Charbonnages de France
conversion companies.
(d) Form of subsidy (grant, loan, tax concession, etc.)
Long-term soft loans without a security requirement.  The loans may always be repaid before
the due date and redeemed without penalty.G/SCM/N/71/EEC/Add.5
Page 11
Acquisition of minority holdings.
Provision of free advice and services to SMEs.
(e) Beneficiaries of the aid and allocation mechanism (calculation method and conditions)
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) :
Enterprises in the coal-mining areas.
- Conditions :  2 to 3 per cent below the normal rate with a variable period of
repayment.  In zones covered by SOFIREM and FINORPA and included in the zones
qualifying for a PAT, the aid component is incorporated into the total regional aidanticipated for a given project, in order to ensure that the regional aid ceilings are
respected.  Outside PAT zones, only SMEs are eligible for the measures in question.
(f) Subsidy per unit, or where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating, if possible, the average subsidy per unit in the previous year)
- For 1994:  F81 million for SOFIREM;  no payment to FINORPA;- for 1995 (corrected):  F81 million for SOFIREM;  F54 million for FINORPA, but not
paid;
- for 1996, 1997, 1998, 1999 and 2000:  no appropriations.
(g) Duration of the subsidy and/or any other time-limit attached to it
Permanent scheme.
(h) Statistical data for assessing the trade effects of the subsidy
The aid is intended to compensate for the disa dvantages associated with establishment in the
areas in question (lack of qualified subcontracting personnel, distance from markets, suppliers, etc.)
Consequently, it has no effect on trade.
5. Industrial Development Company (SODIE)
(a) Period covered by the notification
2000
(b) Policy objective and/or purpose of the subsidy (or aid scheme)
Reindustrialization and diversification in areas affected by industrial decline.
(c) Legal basis (reference, date)
Initial approval on 17 February 1988 for conversion companies on condition that the aid
component of their activities is incorporated in th e overall regional aid package for a given project, in
order to ensure that the ceilings imposed under the PAT scheme are respected.
Letter from the Commission dated 13 February 1995 for funding during the 1993 financial
year.G/SCM/N/71/EEC/Add.5
Page 12
Aid Number :  762/94.
As of 1 January 1993, the five conversion co mpanies of the USINOR-SACILOR group were
merged to form a single entity, i.e. the Société pour le Développement de l'Industrie et de l'Emploi
(SODIE), comprising the following companies:  SOCINOR, SODINOR VNE; SODIKERQUE,SODIKERQUE LITTOTAL, SODIEST, SODICEM, SOCADEV.
(d) Form of subsidy (grant, loan, tax concession, etc.)
The loans may not be cancelled and the subsidies granted for the redeployment of iron and
steelworkers are not financed by State funds but by the USINOR-SACILOR iron and steel group.
(e) Beneficiaries and allocation mechanism (calculation method and conditions)
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) :
Enterprises established in the iron and steel conversion areas.
- Allocation mechanism
- Conditions : Zones of operation to be defined in agreement with the Commission.
(f) Subsidy per unit, or, where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating, if possible, the average subsidy per unit in the previous year)
- For 1994:  F200 million;
- for 1995:  F200 million;
These two figures represent State payments to SODIE
- For 1996:  F151 million in soft loans;
- for 1997:  F128 million in soft loans.
Since 1996, SODIE has not received State funding;  SODIE acts on behalf of the State by
using the repayments of loans previously granted.
- For 1998:  F137 million;
- for 1999:  F106 million.
(g) Duration of the subsidy and/or any other time-limits attached to it
Variable.
(h) Statistical data for assessing the trade effects of the subsidy
The aid is intended to compensate for the disa dvantages associated with establishment in the
areas in question (lack of qualified subcontracting personnel, distance from markets, suppliers, etc.).
Consequently it has no effect on trade.G/SCM/N/71/EEC/Add.5
Page 13
B. CORSICA
1. Tax exemption for new activity
Tax exemption, subject to approval, for profits resulting from new activities created in
Corsica.
(a) Period covered by the notification
2000
(b) Policy objective and/or purpose of the subsidy (or aid scheme)
To encourage job creation and economic development in Corsica.
(c) Legal basis (reference, date)
Article 208 quater  A of the General Taxation Code deriving from Article 88 of Law
No. 90-1168 of 29 December 1990, last amended by Article 4-I of Law No. 94-1131 of27 December 1994.
(d) Form of subsidy (grant, loan, tax concession, etc.)
Tax concession.  Exemption from profits tax for a period of 96 months.
(e) Beneficiaries and allocation mechanism (calculation method and conditions)
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) :
Companies subject to corporation tax on new activities launched in Corsica before1 January 1999 in the industrial, crafts, building and agricultural sectors.
- Allocation mechanism :  Approval.
- Conditions :  Subject to approval.
(f) Subsidy per unit, or where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating, if possible, the average subsidy per unit in the previous year)
- Total amount for 2000 :  Insignificant.
(g) Duration of the subsidy and/or any other time-limit attached to it
Eight years;  the scheme closed on 1 January 1999.
(h) Statistical data for assessing the trade effects of the subsidy
Not available
2. Tax exemption for new enterprises
Tax exemption for profits realized by enterprises set up in Corsica in the crafts, industrial,
hotel, construction and public works sectors.G/SCM/N/71/EEC/Add.5
Page 14
(a) Period covered by the notification
2000
(b) Policy objective and/or purpose of the subsidy (or aid scheme)
To encourage the creation of new enterprises in Corsica.
(c) Legal basis (reference, date)
Article 208 sexies  of the General Taxation Code deriving from Article 22 of Law
No. 87-1061 of 30 December 1987, last amended by  Article 4-II and III of Law No. 94-1131 of
27 December 1994.
(d) Form of subsidy (grant, loan, tax concession, etc.)
Tax concession.  Exemption from profits tax for a period of 96 months.
(e) Beneficiaries and allocation mechanism (calculation method and conditions)
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) :
Companies subject to corporation tax set up in Corsica before 1 January 1999.
- Allocation mechanism :  By operation of law.
- Conditions :  The enterprises must carry on all their business in Corsica.
(f) Subsidy per unit, or where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating, if possible, the average subsidy per unit in the previous year)
- Total amount for 2000 :  Insignificant
(g) Duration of the subsidy and/or any other time-limits attached to it
Eight years;  the scheme closed on 1 January 1999.
(h) Statistical data for assessing the trade effects of the subsidy
Not available.
3. Tax exemption on profits of up to F400,000
Profits tax exemption for industrial, commercial, crafts and agricultural enterprises that
already operate in Corsica or establish operations there before 31 December 2001.
(a) Period covered by the notification
2000G/SCM/N/71/EEC/Add.5
Page 15
(b) Policy objective and/or purpose of the subsidy (or aid scheme)
To encourage the creation and maintenance of operations in Corsica.
(c) Legal basis (reference, date)
Article 44 decies  of the General Taxation Code deriving from Article 1 of Law No. 96-1143
of 26 December 1996 and last amended by Arti cle 1 of Law No. 98-1266 of 30 December 1998.
(d) Form of subsidy (grant, loan, tax concession etc.)
Tax concession.  Reduction on taxable profits subject to a ceiling of F400,000 per 12-month
period.  This tax benefit is offset by a supplementary tax levied on the exempted profits at the time of
redistribution.
(e) Beneficiaries and allocation mechanism (calculation method and conditions)
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) :
Commercial, crafts, liberal-professional and agricultural enterprises, for their new or
existing activities established in Corsica.
- Allocation mechanism :  By operation of law.
- Conditions :  The enterprises must possess in Corsica operating resources enabling
them to carry on their operations there autonomously.
(f) Subsidy per unit, or where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating, if possible, the average subsidy per unit in the previous year)
- Total amount for 2000 :  F220 million.
(g) Duration of the subsidy and/or any other time limits attached to it
Five years;  the scheme closes on 31 December 2001.
(h) Statistical data for assessing the trade effects of the subsidy
Not available.
C. FRENCH OVERSEAS DEPARTMENTS (FOD S)
1. Long-term tax treatment
(a) Period covered by the notification
2000
(b) Policy objective and/or purpose of the subsidy (or aid scheme)
To contribute to the promotion of the Overseas Departments, and more generally, to foster
their economic development.G/SCM/N/71/EEC/Add.5
Page 16
(c) Legal basis (reference, date)
Article 1655 bis of the General Taxation Code, deriving from Decree No. 58-558 of
28 June 1958, and last amended by Articl e 44 of Law No. 96-1182 of 30 December 1996.
(d) Form of subsidy (grant, loan, tax concession, etc.)
Tax concession.  This arrangement mainly involves exemption from corporation tax on
reinvested profits and from import and export duties and fees on certain products.  This scheme may
not be applied concurrently with the exemption arrangements provided for under Article 208 quater
of the General Taxation Code.
(e) Beneficiaries and allocation mechanism (calculation method and conditions)
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) :
Public limited liability companies, limited partnerships with a share capital and
private limited liability companies whose purpose is research and mining in theOverseas Departments, public limited liability companies, limited liability
partnerships and private limited liability companies with agricultural, forestry or
industrial activities in the department of Guyana;  companies whose sole purpose is to
conduct industrial activities in the departments of Guadeloupe, Martinique and
Reunion comprising an investment pr ogramme for a minimum of F20 million.
- Allocation mechanism :  Prior approval by the Ministry of the Economy, Finance and
Industry.
- Conditions :  See above.
(f) Subsidy per unit, or where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating, if possible, the average subsidy per unit in the previous year)
- Total amount for 2000 :  Amount unavailable.
(g) Duration of the subsidy and/or any other time-limits attached to it
The duration of the subsidy is specified in the authorization for each particular case and is
limited to a maximum of 25 years plus, where appropriate, installation time not exceeding five years.
It applies to companies that submit their applicat ions for authorization before 31 December 2001.
(h) Statistical data for assessing the trade effects of the subsidy
No company requested an authorization in 1996 and 1997.Six authorizations were granted to mining companies in 1998 and 1999.No authorization was granted in 2000.G/SCM/N/71/EEC/Add.5
Page 17
2. VAT deduction for certain exempted products
(a) Period covered by the notification
2000
(b) Policy objective and/or purpose of the subsidy (or aid scheme)
To promote economic development in Overseas Departments.  To prevent an exempted
product from being taxed following incorporation into a process.
(c) Legal basis (reference, date)
Ministerial Decision of 2 November 1953.
(d) Form of subsidy (grant, loan, tax concession, etc.)
Tax concession.  Deduction of VAT on certain exempted products.
(e) Beneficiaries and allocation mechanism (calculation method and conditions)
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) :
Enterprises subject to VAT established in the Overseas Departments of Guadeloupe,
Martinique and Reunion.
- Allocation mechanism :  Deduction of uncollected VAT.
- Conditions :  The deduction of uncollected VAT may only take place following the
import or purchase of certain exempted products.
(f) Subsidy per unit, or where this is not possible, total amount or annual amount budgeted for
the subsidy (including, if possible, the average subsidy per unit in the previous year)
- Total amount for 2000 :  F580 million.
(g) Duration of the subsidy and/or any other time-limits attached to it
Permanent scheme.
(h) Statistical data for assessing the trade effects of the subsidy
Not available.
3. Reduction in payroll tax rates
(a) Period covered by the notification
2000
(b) Policy objective and/or purpose of the subsidy (or aid scheme)
To encourage the creation of enterprises and employment by limiting the tax burden on
salaries paid by enterprises established in the Overseas Departments.G/SCM/N/71/EEC/Add.5
Page 18
(c) Legal basis (reference, date)
Article 231§2 bis and 5 of the General Taxation Code, deriving from Article 2 of Law
No. 56-1327 of 29 December 1956 and Article 11 of Law No. 60-1368 of 21 December 1960.
(d) Form of subsidy (grant, loan, tax concession, etc.)
Tax concession consisting in a reduction, as compared to Metropolitan France, of the tax rate
on salaries paid by employers in the FODs.
(e) Beneficiaries and allocation mechanism (calculation method and conditions)
Companies established in the Overseas Departments.
(f) Subsidy per unit, or where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating, if possible, the average subsidy per unit in the previous year)
- Total amount for 2000 :  F570 million.
(g) Duration of the subsidy and/or any other time-limits attached to it
Permanent scheme.
(h) Statistical data for assessing the trade effects of the subsidy
No trade effects given the nature of the sectors subject to payroll tax (associations, medical
sector, banks, insurance).
4. Deduction of invested income and profits
(a) Period covered by the notification
2000
(b) Policy objective and/or purpose of the subsidy (or aid scheme)
To contribute to the economic development of French Overseas Departments and Territories.
(c) Legal basis (reference, date)
Initially codified under Articles 238 bis HA and 238 bis HC of the General Taxation Code
deriving from Article 22 of the Finance Law No. 86-824 of 11 July 1986, this scheme has been
amended practically every year and is now codified under Articles 163 tervicies , 217 undecies  and
217 duodecies  of the said Code.
(d) Form of subsidy (grant, loan, tax concession, etc.)
Tax concession.  Deduction of the amount of eligible investments from the profits subject to
corporation tax or from the net global income of taxpaying natural persons.G/SCM/N/71/EEC/Add.5
Page 19
(e) Beneficiaries and allocation mechanism (calculation method and conditions)
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) :
Enterprises and partners in a company subject to income tax which make productive
investments overseas intended for use in a limited number of listed sectors of activity,or, solely in respect of enterprises subjec t to corporation tax, which subscribe in cash
for shares in companies subject to corporation tax that invest overseas in those sectors
or for shares in regional development companies in the Overseas Departments.
- Allocation mechanism :  Prior authorization must be obtained for eligible investments
in excess of F2 or 5 million, depending on the type of financing arrangements.
Authorization is automatic for investments below this amount except for investmentsin the hotel and tourism (tourist accommodation) sectors, transport, sea fishery,
audiovisual and cinematographic production and broadcasting or concessions for local
public services of an industrial or commercial nature, which require authorization as
of the first franc.
- Conditions :  The  fixed assets, which must be tangible, new and redeemable, must be
acquired, created, or leased by an enterprise for the regular needs of the activity of
establishments belonging to the following sectors:  industry, renewable energy,
agriculture, construction and public works, crafts or maintenance services provided
for industrial activities or one of the above-mentioned sectors.
(f) Subsidy per unit, or where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating, if possible, the average subsidy per unit in the previous year)
- Total amount for 2000 :  F1,900 million (estimated).
(g) Duration of the subsidy and/or any other time-limits attached to it
The current scheme was in force up to 31 December 2000.
(h) Statistical data for assessing the trade effects of the subsidy
Number of applications approved in 2000, mostly in the transport sector:
Article 163 tervicies :  364.
Article 217 undecies :  63.
5. Temporary tax exemption for creation of activities
Temporary exemption from corporation tax for the creation of activities in the Overseas
Departments.
(a) Period covered by the notification
2000
(b) Policy objective and/or purpose of the subsidy (or aid scheme)
To encourage economic development and employment in the Overseas Departments.G/SCM/N/71/EEC/Add.5
Page 20
(c) Legal basis (reference, date)
Article 208 quater  of the General Taxation Code deriving from Article 9 of Law No. 60-1368
of 21 December 1960, as last amended by Arti cle 40 of Law No. 96-1182 of 30 December 1996.
(d) Form of subsidy (grant, loan, tax concession, etc.)
Tax concession.  Temporary exemption from corporation tax and profits resulting from the
authorized activity within  the limits set forth in the authorization.  The exemption does not apply to
capital gains from the transfer of all or some of the company's shares or fixed assets.
(e) Beneficiaries and allocation mechanism (calculation method and conditions)
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) :
Companies which, in a limited number of listed sectors, create a new activity likely to
contribute to the economic development of the Overseas Departments and create new
jobs.
- Allocation mechanism :  Prior authorization from the Minister of the Budget.
- Conditions :  Activities in industry, fisheries, the hotel trade, tourism, renewable
energy, agriculture, construction and public works, transport, crafts, maintenanceservices provided for industrial activities, audiovisual and cinematographic
production and broadcasting, concessions and leases for local public services of an
industrial or commercial nature, and medium-standard welfare housing.
(f) Subsidy per unit, or where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating, if possible, the average subsidy per unit in the previous year)
- Total amount for 2000 :  F50 million (estimated).
(g) The duration of the subsidy and/or any other time limits attached to it
Exemption is granted for a period of 10 years starting from the actual commissioning of the
installations to be used in carrying out the author ized activity.  The scheme applies to companies that
are formed or that create a new activity before 31 December 2001;  it should, however, be extended
under the same terms for a period of five years.
(h) Statistical data for assessing the trade effects of the subsidy
Number of authorizations granted:- 1996:  28
- 1997:  25- 1998:  23
- 1999:  12
- 2000:    0
6. Reduced taxation of operating results
Reduced taxation of profits from operations in Overseas Departments.G/SCM/N/71/EEC/Add.5
Page 21
(a) Period covered by the notification
2000
(b) Policy objective and/or purpose of the subsidy (or aid scheme)
To foster economic development and employment in the Overseas Departments.
(c) Legal basis (reference, date)
Article 217 bis of the General Taxation Code, deriving from Article 40-I of Law No. 65-566
of 12 July 1965, as last amended by Article 53-II of Law No. 92-1476 of 31 December 1992.
(d) Form of subsidy (grant, loan, tax concession, etc.)
Tax concession.  One-third reduction of profits or losses resulting from activities that take
place in the Overseas Departments.
(e) Beneficiaries and allocation mechanism (calculation method and conditions)
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) :
Enterprises subject to corporation tax and carrying on, in the Overseas Departments,an activity in a limited number of listed sectors.
- Allocation mechanism :  By operation of law.
- Conditions :  Activities in agriculture, industry, the hotel trade, tourism, fisheries,
renewable energy, construction and public works, transport and crafts, maintenance
services provided for industrial activities, audiovisual and cinematographic
production and broadcasting and concessions and leases for local public services of an
industrial or commercial nature.
(f) Subsidy per unit, or where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating, if possible, the average subsidy per unit in the previous year)
- Total amount for 2000 :  F310 million (estimated).
(g) Duration of the subsidy and/or any other time-limit attached to it
The scheme is applicable to accounting periods closed by 31 December 2001.  It should,
however, be extended under the same terms for a period of five years.
(h) Statistical data for assessing the trade effects of the subsidy
Not available.
7. Premium for job creation in the Overseas Departments
(a) Period covered by the notification
2000G/SCM/N/71/EEC/Add.5
Page 22
(b) Policy objective and/or purpose of the subsidy (or aid scheme)
Job creation.
(c) Legal basis (reference, date)
Decree No. 95-504 of 2 May 1995.
(d) Form of subsidy (grant, loan, tax concession, etc.)
Grant.
(e) Beneficiaries and allocation mechanism (calculation method and conditions)
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) :
Enterprises established in the four French Overseas Departments.
- Allocation mechanism :  Prior authorization by an order of the Government
representative in the Department.
- Conditions :  Job creation.
(f) Subsidy per unit, or where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating if possible, the average subsidy per unit in the previous year)
- Total amount for 1999 :  F8,773,200 (subsidy per unit:  F24,000 per job created).
- Total amount for 2000 :  F6,959,040.
(g) Duration of the subsidy and/or any other time-limits attached to it
The premium is proportional to the number of newly created jobs and amounts to F205,000
per job.  It is disbursed over ten years.
(h) Statistical data for assessing the trade effects of the subsidy
The trade effects of the subsidy pertain to the creation of 366 jobs in 1999.*production :  no.
*consumption :  no.
*extra-community imports/exports :  no.
For products or sectors that have benefited from subsidies for the past three years and with
reference to the year preceding that in whic h the subsidy was granted for the first time.
If the aid is largely available, or if sufficiently precise data are not available or are negligible,
this must be explained and justified in the notification.
If the aid is considered as having no trade effects (i.e. environment, R&D), this should also be
explained and justified in the notification.G/SCM/N/71/EEC/Add.5
Page 23
D. URBAN AREAS IN DIFFICULTY
1. Measures on behalf of Urban Free Zones (ZFU)
Tax exemption for five years on profits of up to a set ceiling for industrial, commercial, crafts
or liberal-professional enterprises that create or have an establishment in an urban free zone before
31 December 2001.
(a) Period covered by the notification
2000
(b) Policy objective and/or purpose of the subsidy (or aid scheme)
To encourage the creation and maintenance of activities in urban free zones.
(c) Legal basis (reference, date)
Article 44 octies of the  General Taxation Code, deriving from Articles 2, 5 A and 5 C of
Law No. 96-987 of 14 November 1996.
(d) Form of the subsidy (grant, loan, tax concession, etc.)
Tax concession.  Tax corresponding to reduction of profits subject to a ceiling of F400,000
per 12-month period.
(e) Beneficiaries and allocation mechanism (calculation method and conditions)
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) :
Industrial, commercial, crafts or liberal-professional enterprises for their new or
existing activities established in urban free zones.
- Allocation mechanism :  By operation of law.
- Conditions :  The enterprises must carry on an ac tual activity involving a meaningful
presence within an urban free zone.
(f) Subsidy per unit, or where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating, if possible, the average subsidy per unit in the previous year)
- Total amount for 2000 :  F460 million.
(g) Duration of the subsidy and/or any other time-limits attached to it
Five years;  the scheme will close on 31 December 2001.
(h) Statistical data for assessing the trade effects of the subsidy
Not available.G/SCM/N/71/EEC/Add.5
Page 24
III. R&D SCHEMES
1. Tax credit to promote research
(a) Period covered by the notification
2000
(b) Policy objective and/or purpose of the subsidy (or aid scheme)
To encourage better organization of research activities.
(c) Legal basis (reference, date)
Articles 244 quater  B and 199 ter B of the General Taxation Code.
(d) Form of the subsidy (grant, loan, tax concession, etc.)
Tax concession – tax credit.
(e) Beneficiaries and allocation mechanism (calculation method and conditions)
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) :
Industrial, commercial or agricultural enterprises.
- Allocation mechanism :  Tax credit equivalent to 50 per cent of the amount by which
research expenditure in a given year exceeds the average research expenditure of the
two previous years.
- Conditions :  The enterprise must have exercised an option under the terms and
conditions and within the deadlines set out in the law.
(f) Subsidy per unit, or where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating, if possible, the average subsidy per unit in the previous year).
- Total amount for 2000 :  F3,000 million.
(g) Duration of the subsidy and/or any other time-limits attached to it
Scheme applicable up to 31 December 2003.
(h) Statistical data for assessing the trade effects of the subsidy
The aid has no effects on trade, since it is linked to the enterprise's research activity in terms
of increased expenditure, and not to its productive or commercial potential.  It is a general and non-specific fiscal measure, which is not regarded as a su bsidy by the French authorities.  It is notified in
the interests of transparency.
2. Research and Technology Fund (FRT)
(a) Period covered by the notification
2000G/SCM/N/71/EEC/Add.5
Page 25
(b) Policy objective and/or purpose of the subsidy (or aid scheme)
- To create new partnerships between public research and industrial research;- to launch projects in new fields of research and technology;- to foster the development of research and the transfer of technology to the regions.
(c) Legal basis (reference, date)
- Decree No. 59-1397 of 9 December 1959 concerning the creation of a development
fund for scientific and technological research.
- Decree No. 91-347 of 8 April 1991 concerning FRT support for research projects
conducted by industrial and commercial enterprises.
- Decree No. 99-1060 of 16 December 1999 concerning State subsidies for investment
projects.
(d) Form of subsidy (grant, loan, tax concession, etc.)
- Subsidy (grant) appearing on the green list (Article 8.2(a)) representing a maximum
of 50 per cent of the total cost of the programme for the enterprises.
- All enterprises and public bodies engaged in basic research work or pre-competition
development activities may apply under the same conditions.
(e) Beneficiaries and allocation mechanism (calculation method and conditions)
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) :  The
FRT is not intended to provide aid to enterprises but to support the realization of
research projects.  Thus, 67 per cent of the beneficiaries of FRT support are
enterprises in the secondary and tertiary sectors, 13 per cent are higher education
establishments and 20 per cent are research institutions.
(f) Subsidy per unit, or where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating, if possible, the average subsidy per unit in the previous year)
The amounts listed below are the envelope of disbursement authorizations given over the year
(including carryovers and allocations cancelled).
- 1999:  F630 million budgeted under the preliminary Finance Law;  total:
F701.75 million following amendments;  F594.61 million disbursed;
- 2000:  F845 million budgeted under the preliminary Finance Law;  total:
F946.83 million following amendments;  F911.13 million disbursed.
(g) Duration of the subsidy and/or any other time-limits attached to it
Permanent schemed funded on a yearly basis under the Finance Law.G/SCM/N/71/EEC/Add.5
Page 26
(h) Statistical data for assessing the trade effects of the subsidy
The projects in question are part of the upstream phase of the research and development
process.  The subsidies have no measurable impact on the trade performance of the enterprises
involved.  Only scientific and technical content is considered in the selection and evaluation ofprojects.  This is general, non-specific aid within the meaning of the Agreement.  This aid is notified
strictly in the interests of transparency.
3. Industrial Innovation Fund (FII)
(a) Period covered by the notification
2000
(b) Policy objective and/or purpose of the subsidy (or aid scheme)
To encourage the development of large-scale, strategically or commercially important civilian
projects of a distinctly innovative nature and whose purpose is the marketing of a product or process
determined by the management of the enterprises within a period of less than five years.
(c) Legal basis (reference, date)
Approval by the Commission on 10 November 1989 for the Industrial Innovation Fund
"Grands Projets Innovants" and on 1 December 1986 for the Electronic Systems part (No. SG
86/D 14441.)
Aid Number :  N 79/89 in 1989;  N 5/95 on 23 February 1995.
Approval by the Commission on 23 February 1995, 7 February 1994, 19 May 1995 for the
Electronic Systems part.
(d) Form of subsidy (grant, loan, tax concession, etc.)
Repayable advances which can be turned into subsidies in the event of the project's failure.
(e) Beneficiaries and allocation mechanism  (calculation method and conditions)
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) :
General support scheme for projects pertaining to all industrial groups whatever theirsize.
- Conditions :  The amounts taken into consideration are fairly substantial
(approximately F15 to 50 million).  The gross level of aid is 30 per cent, although it
may be increased by 10 per cent in cases where intersectoral or cooperative projects arefinanced from the basic research stage onwards.  The rule on the cumulation of aid
from different schemes applies to the Industrial Innovation Fund.
(f) Subsidy per unit, or where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating, if possible, the average subsidy per unit in the previous year)G/SCM/N/71/EEC/Add.5
Page 27
Budget :
- For 1999:  F1,800 million.- for 2000:  F1,800 million.
(g) Duration of the subsidy and/or any other time-limits attached to it
Permanent scheme funded on a yearly basis under the Finance Law.
(h) Statistical data for assessing the trade effects of the subsidy
The purpose of the programme is to finance innovation:
- the expenditures financed concern research and development and consequently have
no effect on production costs;
- being innovatory, the products and pr ocesses in question cannot compete with
existing ones;
- the programme consequently has no trade effect and is notified in the interests of
transparency.
4. National Agency for the Promotion of Research (ANVAR)
(a) Period covered by the notification
2000
(b) Policy objective and/or purpose of the subsidy (or aid scheme)
To make full use of the results of scientific and technical research.
To promote innovation and technological progress.
To facilitate the transfer to industry of the results of laboratory research.
(c) Legal basis (reference, date)
Decree No. 97-152 of 19 February 1997 on the organization and operation of ANVAR and
Decree No. 97-682 of 31 May 1997 concerning aid to innovation.
Notification by the French authorities on 3 February 1988, amended on 15 June 1989, then on
28 January 1994.
Adoption by the European Commission on 17 July 1989 (SG(89) 9616), amended on
10 April 1990, then on 14 March 1994.
(d) Form of the subsidy (grant, loan, tax concession, etc.)
Interest-free loan:  repayable, in the event of technical and commercial success of the R&D
project, over a three to five-year period.
The loan becomes a non-reimbursable subsidy in the event of failure of the project.G/SCM/N/71/EEC/Add.5
Page 28
Direct subsidies for studies prior to the launching of research and development and innovation
projects, and feasibility and advisory studies.
(e) Beneficiaries and allocation mechanism (calculation method and conditions)
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) :
Enterprises with fewer than 2,000 employees.
- Allocation mechanism
- Conditions :  Aid to innovation projects and aid to new technological enterprises
being created or that have existed for less than three years, following a technical andfinancial study of the programme;  aid for the recruitment of researchers.
Submission of an annual report to the Commission.Notification of cases of application to projects valued at over €25 million.
(f) Subsidy per unit, or where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating, if possible, the average subsidy per unit in the previous year)
Repayable advances with a ceiling of 40 per cent of the intangible investment (maximum of
24.6 per cent in gross subsidy equivalent in case of success).
Direct subsidies up to a ceiling of F200,000, with a maximum rate of 50 per cent.Total amount for 2000 :
- For 1999:  F1,058 million.- for 2000:  F1,424 million.
(g) Duration of subsidy and/or any other time-limits attached to it
Permanent scheme funded on an annual basis under the Finance Law.
(h) Statistical data for assessing the trade effects of the subsidy
The purpose of the programme is to finance innovation:- the expenditures financed concern research and development and consequently have
no effect on production costs;
- being innovatory, the products and pr ocesses in question cannot compete with
existing ones.
Consequently, the programme has no effect on trade.G/SCM/N/71/EEC/Add.5
Page 29
5. ATOUT-PUMA
(a) Period covered by the notification
2000
(b) Policy objective and/or purpose of the subsidy (or aid scheme)
To support research and development projects aimed at enabling enterprises to acquire
dissemination technologies.
(c) Legal basis (reference, date)
Annual Finance Law.
Date of adoption by the Commission:
N463/90 and N 10/97, confirmed on 7 June 1999.
(d) Form of the subsidy (grant, loan, tax concession, etc.)
Subsidy (for projects involving the feasibility stage):  maximum of 50 per cent in gross
subsidy equivalent (subsidy ceiling at €40,000).
Advances repayable in case of success:  between 16.5 per cent in gross subsidy equivalent
(advance fully repaid) and 40 per cent in gross subsidy equivalent (in case of total failure of the
research project and non-repayment of the advance).
(e) Beneficiaries and allocation mechanism (calculation method and conditions)
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) :
Industrial enterprises.
- Conditions:   Financially sound enterprises with fewer than 2,000 employees, that are
not subsidiaries of a group comprising 2,000 employees or more.
(f) Subsidy per unit, or where this is not possible, total amount or annual amount budgeted for
the subsidy (indicating, if possible, the average subsidy per unit in the previous year)
- for 2000 :  F210 million
(g) Duration of the subsidy and/or any other time-limit attached to it
Permanent scheme funded on an annual basis under the Finance Law.
(h) Statistical data for assessing the trade effects of the subsidy
The purpose of the programme is to disseminate technologies and to finance training expenses
and research and development costs without affecting the cost of production.
The programme has no effect on trade.G/SCM/N/71/EEC/Add.5
Page 30
6. Aid to Research Institutions in the Civil Aviation Sector
(a) Period covered by the notification
2000
(b) Policy objective
The main purpose of the scheme is to help a number of non-profit-making research
institutions to have the equipment necessary to their activity.
(c) Legal basis
Annual Finance Law.Arrangement approved by the European Commission (No. 53/96).
(d) Form of subsidy
Non-repayable subsidy.
(e) Beneficiaries and allocation mechanism
Mainly ONERA and ETW (European Transonic Wind Tunnel).
(f) Total amount
F20 million in 2000 (F17 million excluding VAT).
(g) Duration
Permanent scheme funded on an annual basis under the Finance Law.
(h) Statistical data
The entities concerned are non-profit-making.
7. Aid to Civil Aviation Research and Development
(a) Period covered by the notification
2000
(b) Main objective
The main objective of the research is to develop knowledge to improve the technological base
of the industry.
The research involves improving the understanding of phenomena with a view to selective
investigation in greater depth of areas likely to yield gains in performance and in precision of
calculations with a view to shorter design cycles, as well as full-size testing.G/SCM/N/71/EEC/Add.5
Page 31
(c) Legal basis
Annual Finance Law.Arrangement approved by the European Commission (No. 53/96).
(d) Form of subsidy
Non-repayable subsidy intended to finance a part of the cost of several previously selected
research operations.
(e) Beneficiaries
About 30 enterprises were involved in 1999.
(f) Total amount
F510 million in 2000 (F426 million excluding VAT).
(g) Duration
Permanent scheme funded on an annual basis under the Finance Law.
(h) Statistical data
The aid goes entirely to research and therefore has no bearing on product manufacture.
__________