WORLD TRADE  
ORGANIZATION  G/SCM/N/95/EEC/Add.6 
15 December 2003 
 (03-6589) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES  
 
New and Full Notification Pursuant to Article XVI:1 of the GATT 1994  
and Article 25 of the Agreement on Subsidies and  
Countervailing Measures  
 
EUROPEAN COMMUNITIES 
 
Addendum  
 
  The following addendum to the notification of  the European Community relates to subsidy 
programmes of Germany. G/SCM/N/95/EEC/Add.6 
Page 2  
 
 GERMANY  
 
 
TABLE OF CONTENTS 
 
Page  
 
1. German Shipyards (Werfthilfen) ............................................................................................3 
2. German Shipyards (Wettbewerbshilfe) ..................................................................................4 
3. Bavarian Regional Programmes in Support of Commerce and Industry ...........................5 
4. Reduction of rates on inheri table land-use rights (Berlin)....................................................5 
5. Consolidation programme of th e Land Mecklenburg-Vorpommern ..................................6 
6. Joint Scheme on "Improving th e Regional Economic Structure" .......................................7 
7. Regional Economic  Support Programme ...............................................................................8 
8. Promotion of efficient use of energy; programme section "promotion of 
technological  development (REN/TE)"..................................................................................9 
9. Regional Aid Programme (Land Rheinland-Pfalz) ...............................................................9 10. National Programme for Ci vil Aeronautical Research .......................................................10 
11. Fairchild Dornier - Loan Guarantee.....................................................................................11 12. Pulp Mill Stendal (Sachsen-Anhalt) ......................................................................................11 13. Corrugated Base Paper Plant (Brandenburg)......................................................................12 
 
        
 
 
Please note: 1 EURO = 1,95583 DEM (GERMAN MARKS)  
  G/SCM/N/95/EEC/Add.6 
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 1. German Shipyards (Werfthilfen) 
1. Name of the subsidy scheme or ad hoc subsidy  
  Interest-Rate Grants to Finance Orders to German Shipyards ("Werfthilfen") 2002 
 
2. Form of the subsidy
 
  Grant.  3. Subsidy per unit
 
 
 Total amount of assistance provided in 2001/2002 
 
Total amount of assistance provided in 2001:  60,2 Mio. Euro 
 
 Total amount of assistance provided in 2002: 46,4 million Euro 
 4. Objective and/or purpose of the subsidy
 
  The eighth shipyard assistance programme (VIII.   Werfthilfeprogramm) exists to provide 
non-repayable interest-rate grants under the rele vant OECD Understanding On Export Credits For 
Ships (1981). In the frame of this Export Credit Ag reement, which expired in April 2002, only legal 
obligations from previous years will be completed.   Legal basis: Commitment  authorizations in the Federal budget from previous 
years 
  Guidelines from the Federal Ministry of Economics and 
Technology 
  Modes of payment: Support is given to th e construction and reconstruction of high 
technology marine vessels (merchant vessels), respecting the OECD Understanding On Export Credits For Ships: 
  8.5 year term 
  20 per cent advance payment   Minimum interest rate of 8 per cent p.a. 
 5. Duration of subsidy and other time-limits attached to it
 
 
 No new commitments  6. Statistical data permitting an assessmen t of the trade effects of a subsidy
:   
  n.a. 
 
 G/SCM/N/95/EEC/Add.6 
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 2. German Shipyards (Wettbewerbshilfe) 
1. Name of the subsidy scheme or ad hoc subsidy
 
  Competition Aid for German Shipyards (Wettbewerbshilfe)  
2 . Form of the subsidy
 
  Grant  3. Subsidy per unit
 
 
Total amount of assistance provided in 2001:  DM 214,2 million 
  Total amount of assistance provided in 2002:  52,4 million Euro  
4. Objective and/or purpose of the subsidy
 
  The assistance is intended to facilitate the rest ructuring being undertaken by the shipyards.  
Grant towards production costs are given, where they  are permissible under the relevant EU directive 
on shipbuilding subsidies  
The programme is funded jointly by th e Federal-, an the Länder-governments. 
 
Legal basis:  Commitment authorizatio ns in the Federal and Länder budgets. 
Guidelines from the Federal Ministry of Economics and Technology. 
 
Modes of payment: Those receiving the grants are shipbuilding companies in the Federal 
Republic of Germany. 
 
Support is given to the constructi on and conversion of high-technology 
marine vessels (merchant vessels).  From 1 January 1994, the support rate is 7 per cent of the price in the contract, fo r ships with a contract price of below 
10 million  Euro and for conversion wo rk, the rate is 4.7 per cent.  
 5. Duration of subsidy and other time-limits attached to it
 
  In the frame of Commission Regulation (EC) No1540/98 production cost aid based on the 
criteria of Article 3, para 1 is admissible for contracts concluded until 31 December 2000. Para 2 of 
the Commission Regulation envisages a three years period from signature of the contract until delivery.    6. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 n.a. 
   G/SCM/N/95/EEC/Add.6 
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 3. Bavarian Regional Programmes in Support of Commerce and Industry 
1. Name of the subsidy scheme or ad hoc subsidy  
  Bavarian programmes in support of commerce and industry (as promulgated by the Bavarian 
Ministry of Economics, Transport and Tec hnology on 22 February  2002, No.3540-III/2-3540 
 
2. Form of the subsidy
 
  Investment grant.  Interest rate subsidy (to subsidize loans). 
 
3. Subsidy per unit
 
  Total support    2001
    2002  (mln Euro) 
 
 Investment grant   61,5     68,0   
  Interest rate subsidy   10,9       6,5     Assisted investment volume             827,7    622,2        "  
 Number of assisted companies   378    299  
 4. Objective and/or purpose of the subsidy
 
  Aid to finance investments in  trade, industry and tourism to  create and secure jobs and 
training places in assisted areas. 
  Objective: Improving regional economi c structures and tourism offers; 
   Increasing the economic strength of structurally weak areas.  5. Duration of subsidy and other time-limits attached to it
 
 
 Until 30 June 2007  6. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available.  Outside the assisted areas pursuant to the Joint Federal Government/Laender 
Scheme for the Improvement of Regional Economic Structures, support is restricted to small and 
medium-sized enterprises (SMEs) within the meani ng of the Decree (EC) Nr.70/2001 of the European 
Commission on State Aid to SME's ( EC L 10/33 dated 12 January 2001)   4. Reduction of rates on inheritable land-use rights (Berlin) 
1. Name of the subsidy scheme or ad hoc subsidy
 
  Reduction to between 3 and 5 per cent of the rates payable on inheritable land-use rights in the case of projects worthy of special promotion of manufacturing firms depending on the degree of 
use of the buildings 
 G/SCM/N/95/EEC/Add.6 
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 2. Form of the subsidy
 
  Cutting land costs by granting a reduced rate on land-use rights.  3. Subsidy per unit
 
 
Payments: 314.321,-- DM in 2001 
  Payments: 132.446,96 Euro in 2002  
4. Objective and/or purpose of the subsidy
 
  Reducing land acquisition costs for the manuf acturing industry for regional promotion 
purposes.  
5. Duration of subsidy and other time-limits attached to it
 
  Unlimited.  6. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 The effects of the subsidy in accordance with  WTO standards cannot be assessed due to the 
low financial resources.   
5. Consolidation programme of the Land Mecklenburg-Vorpommern 
1. Name of the subsidy scheme or ad hoc subsidy
 
  Consolidation programme of the Land Meck lenburg-Vorpommern on the granting of public 
financial aid to small and medium-sized commerc ial and industrial enterprises – special fund to 
support companies  
2. Form of the subsidy
 
  Loans of up to DM 5 million at market conditions.  Usually restricted to SMEs within the meaning of the Community Framework.  
3. Subsidy per unit
 
 
Disbursed loans in 2001:  2.040 million DM 
  Approved loans in 2002:   1.570 million Euro  Disbursed loans in 2002:  1.472 million Euro 
 
4. Objective and/or purpose of the subsidy
 
  Liquidity aid for enterprises that are importa nt for a region in Mecklenburg-Vorpommern in 
terms of labour-market policy and structural policy. 
 
5. Duration of subsidy and other time-limits attached to it
 
  The loans have a maximum duration of ten years.  G/SCM/N/95/EEC/Add.6 
 Page 7 
 
 
  
6. Statistical data permitting an assessmen t of the trade effects of a subsidy  
  Statistics are not available to assess the trade e ffects of the subsidy.  Most of the assisted 
enterprises operate on regional markets only. 
 
 
6. Joint Scheme on "Improving the Regional Economic Structure" 
1. Name of the subsidy scheme or ad hoc subsidy
 
 
 Joint Scheme on "Improving the Regional Economic Structure". 
 2. Form of the subsidy (i.e. grant, loan, tax concession, etc
) 
 
Regional assistance in the form of investment  grants and, exceptionally, loan guarantees 
 
3. Annual amount 2001 and 2002   
  Generally speaking, budget allocations for the Sc heme have been decreased.  In 2001, a total 
amount of 1,710.0 mill.Euro was disbursed by the "L änder" under the Scheme in order to promote 
business (commercial and industrial) investments. 87.1 per cent of this amount (1,488.6 mill.Euro) 
was paid out by the Eastern Länder and Berlin.  The amounts indicated include federal co-financial 
contributions.   In 2002, a total of 1,376.8 mill.Euro was dis bursed by the Länder under the Joint Scheme in 
order to promote business (commercial and industria l) investments.  85.9  per cent of this amount 
(1.175,5 mill.Euro) was paid out by the Eastern Länder and Berlin. The amounts indicated include 
federal co-financial contributions.  4. Policy objective and/or purpose of the subsidy
 
  The primary regional policy objective is to enable  structurally weak regions to keep pace with 
general economic development by offsetting locational disadva ntages and reducing regional 
development differentials.  Regional structural policy focuses on supporting regional development 
activity with a view to raising the levels of empl oyment and income in problem areas in this way.  
Eligible for subsidies under this schem e are commercial and industrial firms. 
 
 Investments in commerce and industry are eligib le for promotion if they generate additional 
income to the region so that the region's total level of  income is raised to a not insignificant extent in 
the long run (primary effect).  This is deemed to  be the case if the company applying for subsidy 
payment sells the better part of its products or services on a supraregional basis.  The investment projects concerned must create new jobs in the assisted areas or secure existing ones.  
 Assisted areas are redefined at multiannual inte rvals on the basis of regional indicators (level 
of income, unemployment, infrastructure).  Assisted  areas in the original Länder including Berlin 
(West) cover 23.4 per cent of the German popula tion in the period from 2000 to 2003.  The new 
federal states and Berlin (East) represent assisted  areas in their entirety till 2003. Moreover, these 
areas have been recognized as objective-1 areas within  the framework of the EC structural Funds until 
the end of 2006 
 G/SCM/N/95/EEC/Add.6 
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 5. Duration of the subsidy
 
  Regional assistance consists of a non-recurring pa yment and is granted to investment projects 
in assisted areas.  The programme is under no time-limit.  
6. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Regional promotion is aimed at offsetting domestic investment disadvantages of certain 
regions and contributes to raising the levels of inco me and employment in structurally weak areas.  
Promotion under the Joint Scheme therefore is neut ral in terms of competition and has no effect on 
competition in international trade. 
  
7. Regional Economic Support Programme 
(Land Nordrhein-Westfalen) 
 
1. Name of the subsidy scheme or ad hoc subsidy
 
  Regional Economic Support Programme  2. Form of the subsidy
 
 
 Grants towards investment projects of trade and industry and local infrastructure.  3. Subsidy per unit
 
 
 The total amount budgeted for 2001 :  DM 113 million  
 The total amount budgeted for 2002:  90,95 Euro   Total number of recipients:  91  4. Objective and/or purpose of the subsidy
 
 
 Improving the regional economic structur e and supporting small and medium-sized 
businesses.  5. Duration of subsidy and other time-limits attached to it
 
 
 not limited  6. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Given the objectives of the programme, trade effects cannot be assessed. 
 
  G/SCM/N/95/EEC/Add.6 
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 8. Promotion of efficient use of energy; progr amme section "promotion of technological 
development (REN/TE)" 
( Land Nordrhein-Westfalen)) 
1. Name of the subsidy scheme or ad hoc subsidy  
 
 Promotion of efficient use of energy;  programme section "promotion of technological 
development (REN/TE)".  State subsidy N 497/94.  2. Form of the subsidy
 
 
 Grant 
 3. Subsidy per unit in 2001:
 
  Approx.:  DM  4.308 million.  
Total number of recipients: 8 
 Subsidy per unit in 2002
: 
 Approx.:  2,891,655 Euro
 
Total number of recipients:  9 
 
4. Objective and/or purpose of the subsidy  
  The promotion section "technological development" supports companies in the fields of energy technology, the energy industry and commercial and industrial energy users in North-
Rhine/Westphalia.  The subsidy is granted for the development of new products and processes for the 
efficient use of energy and raw materials and for the use of renewable ener gies that have a pilot 
character beyond individual companies.  5. Duration of subsidy and other time-limits attached to it
 
 
 The duration is two to three years for projects subsidised in 2001 and 2002. 
 6. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  The above-mentioned subsidy programme is based on the European Community’s Research 
and Development (R&D) framework.  The assisted projects comprise only development stages before 
competition.   
9. Regional Aid Programme (Land Rheinland-Pfalz) 
1. Name of the subsidy scheme or ad hoc subsidy
 
 
 Regional aid programme of the Land Rheinland-Pfalz.  2. Form of the subsidy
 
 
 Investment grant 
 G/SCM/N/95/EEC/Add.6 
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3. Subsidy per unit
 
  Up to 7.5 per cent for medium-sized industries, 15 per cent for small-sized industries.   
 Total budget:  DM 17 million, disbur sement in 2001:   DM 13.1 million. 
              disbursement in 2002:   DM   3.9 million.  4. Objective and/or purpose of the subsidy
 
 
 Promotion of investment in sma ll- and medium-sized industries. 
 5. Duration of subsidy and other time-limits attached to it
 
  Unlimited. 
 
6. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  In 2001:creation of 460 jobs by providing fi nancial assistance to 95 individual promotional 
cases;  
 
10. National Programme for Civil Aeronautical Research 
1. Name of the subsidy scheme or ad hoc subsidy
 
  National programme for civil aeronautical re search and technology for the period 1999 to 
2002. Federal Government a nd Federal States' aid for research and technology. 
 2. Form of subsidy
 
  Non repayable grants (regularly 40 per cen t of the expenses) are awarded towards R&D 
expenditure. 
 
3. Amount of grant per unit
 
  2001: 36.4 million Euro;  2002:  25.0 million Euro  
4. Purpose of aid
 
  This programme intends to contribute to strengthening innovative medium and long term 
research and technology, one of the most important  key technologies with spin-off effects to other 
sectors. The programme aim forms part of the Fede ral Governments' research and technology policy. 
 
 The priorities of the programme are encour aging sustainable research in the fields: 
 
- Low pollutant and safe Aircraft of the next generation 
- Low noise all-weather helicopter 
- Efficient and ecologically friendly engine 
  G/SCM/N/95/EEC/Add.6 
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 5. Duration of aid  
  1999 - 
2002 
 6. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 n.a.   
11. Fairchild Dornier - Loan Guarantee 
1. Name of the subsidy scheme or ad hoc subsidy
 
  Individual loan guarantee for the r escue of Fairchild Dornier GmbH comp 
 2. Form of subsidy
 
 
  Loan guarantee to cover 50 per cent of a loan given by German banks of US$90 million for 
the rescuing period  3.  Subsidy per unit
 
 
 See above 
 4. Objective and/or purpose of the subsidy
 
  Rescue of the company for a limited period of 3 months of time, until the anticipated purchase 
of the company or ist assets by a potential investor 
 5. Duration of the subsidy
 
  Guarantee with permission of the EU - Co mmission for the rescuing period of 3 months 
starting from the day of permission by the EU - Commission on 21 June 2002  
  
6. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  The guarantee is based on the EU guidelines on rescue and restructuring aids.  No other 
statistical data available. 
 
 
12. Pulp Mill Stendal (Sachsen-Anhalt) 
1. Name of subsidy or ad hoc subsidy
 
   Zellstoffwerk (Pulp Mill) Stendal based on following aid schemes: 
 
  A:   Improvement of the regional economic structure (Gemeinschaftsaufgabe) 
 B: Investitionszulagengesetz 1999  C: Scheme for direct guarantees of the Fed.Rep.of Germany and the Federal Länder 
 G/SCM/N/95/EEC/Add.6 
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 2. Form of the subsidy
 
  A:  Grant  B:  Grant  C:  Guarantee 
 
3. Subsidy per Unit
 
  A:  109,161 million Euro  B:  165,515 million Euro 
 C:  80 per cent guarantee for a loan of 464,55 million Euro 
 4. Objective and/or purpose of the subsidy
 
  The primary regional policy objective is to enable  structurally weak regions to keep pace with 
general economic development by  offsetting disadvantages of location and reducing regional 
development differentials.  It focuses on supporting regional development activities with a view to 
raising the Levels of employment  and income in problem areas. 
 5. Duration of subsidy
 
 
 2 April 2002 - 31 December 2004 
 
6. Statistical data permitting an assessmen t of the trade effects of the subsidy  
  Not available 
 
 
13. Corrugated Base Paper Plant (Brandenburg) 
1. Name of subsidy scheme or ad hoc subsidy
 
  Grant investment aid under the multisectoral framework on regional aid for large Investment 
projects to the Hamburger AG for the constructi on of a new plant to produce white and brown 
corrugated base paper.  2. Form of subsidy
 
 
 Grant 
 3. Subsidy per Unit
 
  Germany notified ist intention to grant ai d under the multisectoral framework on regional aid 
for large investment projects by the European  Commission.  On 9 April 2002, the European 
Commission decided that the Government of Bra ndenburg is allowed to provide assistance amounting 
to EUR 40.254.350.  To the project of the Ham burger AG. The notification process is finished. 
 4. Objective/purpose of subsidy 
 
 
 Purpose: partly financing a project of Ham burger AG aiming at constructing a new plant for 
the production of corrugated base paper 
  G/SCM/N/95/EEC/Add.6 
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 Objective: improving the regional economic structure in structurally weak areas 
Under Art 87 EC Treaty, creation of 277 permanent and 356 indirect jobs 
 
5. Duration of subsidy  
 
Unlimited 
 
6. Statistical data permitting an assessmen t of the trade effects of the subsidy  
 Not available 
 
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