Neuchatel allows, in some cases, a similar tax advantage to a permanent establishment of a foreign company. Unfortunately this position is currently under attack in Germany, but at least the US tax minimisation appears set to continue. There are several forms of assistance available to companies in the Common Market. They are linked to the company carrying out specific projects which the government wishes to support. Regional support tends nowadays to be directed to job-creation, and government has found it more effective to make grants discretionary rather than automatic.
Support takes the form of soft loans, equity capital or tax concessions.
Support for R and D is embodied in many schemes, involving university research, advanced technology and skill training. There is support for export and development of foreign markets, for new enterprises and for small firms. The Community's R and D schemes are directly administered from Brussels, and is designed to reduce the degree of national fragmentation, which is seen as a disadvantage of European industry as against that of the United States and Japan. In making an application, a company of course needs to provide past and projected figures, but must also understand the objectives which the government wishes to achieve from the scheme in question. Lawyers, accountants and nominee directors are at risk.