Eighth survey on State aid in the European Union
Date: 2000-04-11
Institutions: European Commission
Subjects: EU statistics, European Union, State aid, aid policy, report

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 11.4.2000
COM (2000)205 final

EIGHTH SURVEY ON STATE AID IN THE EUROPEAN UNION

(presented by the Commission)

CONTENTS

INTRODUCTION......................................................................................................................5
Background ................................................................................................................................5
Conceptual remarks....................................................................................................................7

Part I - AID TO THE MANUFACTURING SECTOR ...............................................................9
Volume and trend of aid .............................................................................................................9
Community totals ....................................................................................................................... 9
Comparisons between Member States ...................................................................................... 11
Aid objectives .......................................................................................................................... 15
Aid to other sectors and objectives

Shipbuilding ............................................................................................................. 22
The steel industry ..................................................................................................... 25
The motor vehicle industry ....................................................................................... 26
Foreign direct investment ......................................................................................... 27
CO2 Emission taxes ……......................................................................................... 27
Types of aid instruments........................................................................................................... 29
State aid given on an ad-hoc basis ............................................................................................ 31
German State aid to the new Länder ......................................................................................... 34

- Aid to Agriculture .................................................................................................. 35
Part II
Part III
- Aid to Fisheries ...................................................................................................... 37
Part IV - Aid to Coal mining................................................................................................. 40
- Aid to Transport ..................................................................................................... 43
Part V
- Aid to the Financial services sector ........................................................................ 48
Part VI
Part VII
- Aid to Tourism, Media and Culture ...................................................................... ..49
Part VIII - Aid for Employment and Training……… ...................... …………………………..51
Part IX - Volume of overall national aid in the Community...... ……………………………..53

RESULTS ................................................................................................................................ 58

CONCLUSIONS...................................................................................................................... 60

ANNEX I: TECHNICAL ANNEX......................................................................................... 64

ANNEX II: STATISTICAL ANNEX - National State Aid ...................................................... 74

ANNEX III: STATISTICAL ANNEX - Community funds and instruments ........................... 111

22

TABLES AND FIGURES

Table 1

State aid to the manufacturing sector in the Community

- annual values 1994 -1998 in constant prices.............................................................................9

Table 2

State aid to the manufacturing sector in the Community

- annual values 1994 - 1998 in percent of value added ...............................................................10

Table 3

State aid to the manufacturing sector in the Community

Table 4

Table 5

Table 6

Table 7

Table 8

Table 9

Table 10

Table 11

Table 12

Table 13

- annual averages 1994 - 1996 and 1996-1998...........................................................................11

State aid to the manufacturing sector 1996-1998 - breakdown according to sector and function 17

State aid to the manufacturing sector 1994-1996 and 1996-1998

breakdown by main objectives ..............................................................................…………….18

Aid to shipbuilding in 1996-1998 in percent of contract values of ships .....................................23

Shipbuilding development aid as decided upon by EC 1994-1998...............................................24

Shipbuilding - Total new building supported by State aid ...........................................................24

State aid approved to the motor vehicle sector in the years 1994-1998 .......................................26

Foreign Direct Investment in the years 1994- 1998 ....................................................................27

CO2 Emissiontaxes ...................................................................................................................28

State aid to the manufacturing sector 1996-1998 - breakdown according to type of aid………… 29

State aid on an ad-hoc basis and Treuhand aid awarded in the manufacturing,

financial services and air transport sectors in the Member States in the years 1994 - 1998…… .32

Table 14

State aid on an ad-hoc basis and Treuhand aid awarded in the manufacturing, financial services

Table 15

Table 16

Table 17

Table 18

Table 19

Table 20

Table 21

Table 22

Table 23

Table 24

Table 25

Table 26

and air transport sectors in the Member States - annual averages 1994-1996 and 1994-1998…..33

National budget outlays on Agriculture......................................................................................35

State aid to fisheries in per cent of gross valued added in this sector ..........................................39

Community interventions in the fisheries sector..........................................................................39

State aid to Coal mining ............................................................................................................42

State aid to Railways ……………… .................................................................……………………45

State aid to the Transport Sector.................................................... …………………………………47

State aid toTourism, Media and Culture 1994-1996, 1996-1998………………………..……………50

State aid for Employment and Training 1994-1996, 1996-1998 ................ …………………………52

Overall national aid in the Member States…………..……………………………………….. .............53

Overall national aid in the Member States in per cent of GDP,

in euro per person employed and in per cent of Government expenditure… ............... ……………54

Overall national aid in the Member States broken into main sectors...........................................55

State aid per capita……………………………………………………………………………..................56

33

STATISTICAL ANNEX

Table A 1

Table A 2

Table A 3

Table A 4

State aid to the manufacturing sector in current prices 1994-1998 (in national currency)

75

State aid to the manufacturing sector in current prices 1994-1998 (in euro)

.......................76

State aid to the manufacturing sector in constant prices 1994-1998 (in euro) .......................77

German State aid to the new Länder - yearly average 1996-1998..........................................78

Table A 5-1/15

Total State aid by Member State - annual average 1996–1998 ..............................................79

Table A 5-16

Total State aid in the EU - annual average 1996–1998 .........................................................94

Table A 6-1/15

Total State aid by Member State - annual average 1996–1998 ..............................................95

Table A 6-16

Total State aid by Member State - annual average 1996–1998 ............................................110

COMMUNITY FUNDS AND INSTRUMENTS

Table A

Table B

Table C1

Table C2

FIGURES

Figure 1

Figure 2

Annual Community Expenditure .............................................................................................. 122

Other Community Instruments ................................................................................................. 123

Community Average Annual Expenditure by Member State ...................................................... 124

Community Average Annual Expenditure by Member State ...................................................... 125

State aid to the manufacturing sector as percentage of value added…………………………………13

Aid for R &D, SMEs, Environmental Protection and Energy Saving as a Percentage of aid to

Manufacturing ……………………………………………………………………………………….…….. 19

Figure 3

State aid to the manufacturing sector: Distribution by budgetary expenditure and tax foregone.. 30

44

INTRODUCTION

Background

1.

2.

The need to maintain free and undistorted competition is recognised as being one of
the basic principles upon which the European Union is built. By way of
Community Competition policy the Commission aims to help strengthen the
competitiveness of European industry, ensure effective competition in the internal
market and create the conditions for markets to function well whilst accounting for
Europe’s particular social market economy. A key element of Competition policy is
Community State aid control, the benefits of which are clear. State aid can frustrate
free competition by preventing the most efficient allocation of resources and pose a
threat to the unity of the single market. In many cases the grant of State aid reduces
economic welfare and weakens the incentives for firms to improve their efficiency.
Aid also enables the less efficient to survive at the expense of the more efficient.
The resulting distortions of the market can lead to frictions between Governments
and sometimes to retaliatory measures by third countries, which may be a source of
further inefficiency. The unique system of control that exists throughout
the
European Union and indeed the European Economic Area is aimed at attenuating
these inefficiencies. Based on an agreed set of fundamental principles firmly
anchored in the European Treaties, this system of control makes an important
contribution towards fully realising the benefits of the internal market and single
currency.

However in order to ensure that State aid policy remains fair and equitable, the
practical application of its basic principles must evolve to keep pace with economic
and technological change and with the emergence of new political priorities. Since
the previous Survey was published, the Amsterdam Treaty has been ratified and
increased emphasis has been placed on, for example, environmental protection and
intervention is
is recognised that Community or government
employment. It
justified in certain circumstances in order to redress the effects of market failures
and moreover to reinforce policies that would not be sustained by market forces
alone. However the distortive effects on competition of such interventions must be
minimised. Member States have at their disposal a number of instruments and it is
essential that the economically most efficient be used to achieve the objective at
hand. And in the event that State aid is demonstrated as being the most efficient
instrument, its award must still respect the continually evolving Community State
aid rules.

3. Monitoring and follow-up of national State aid expenditure are essential parts of
the Commission’s State aid policy that is accompanied by a policy of transparency
in the control and use of State aid. The publication of this Eighth Survey underlines
the continued commitment of the Commission and all Member States to this policy.
Compiling and publishing data on the amounts of compatible aid that are awarded
is one primary means by which the Commission demonstrates that it is constantly
keeping a close watch on the results of its control policy. And given the large
measure of control that is exercised on Governments through this policy, it is
essential that these results are known and are subject to scrutiny within the Union.
Thus the Survey is already a good basis for orientating the Commission’s State aid
control policy even though and with the exception of aid that is not yet reimbursed,
it does not analyse aid that because of its incompatibility with the Common Market
was not approved by the Commission. When in the future the new instruments of

55

State aid register and scoreboard are set up, the Commission would then have at its
disposal a set of tools that will allow continued fine-tuning of its State aid policy.

4.

5.

As State aid policy in the European Union evolves, it has to account for the
international context and in particular the multi-lateral obligations imposed by
to the WTO
WTO rules. For example aid to agriculture is entirely subject
Agreement on Agriculture whilst aid that benefits non-agricultural goods and
products is subject
to the WTO Agreement on Subsidies and Countervailing
measures.

Bilateral obligations have been established by way of the Europe Agreements
concluded with the Central and East European Countries that are now candidates to
become members of the EU. These agreements contain a clear obligation to follow
the EU rules on State aid and full compliance with these rules is still needed with
transparency being the first step that should be taken to enforce them. Bilateral
agreements have been signed with other countries and in most cases a State aid
control dimension has been included. The provisions on transparency are essential
and should therefore be implemented at an early stage. This Survey therefore
provides an example of what we should expect in terms of transparency from all of
our trading partners.

66

Conceptual remarks

6.

7.

8.

9.

1

2

Since 1988 the Commission has regularly published State aid Surveys. The First
Survey covered the period 1981-1986 and subsequent Surveys were updated every
two years1.
In order to further enhance transparency, provide more timely
information and enable the Commission to detect at an early stage new trends in the
award of state aid and therefore respond more rapidly to changing circumstances,
the Commission decided in 1998 to publish these Surveys on an annual basis. The
Eighth Survey, which covers the period from 1994 to 1998, is the second annually
published survey.

Commission departments in close co-operation with the Member States drew up the
figures used for this Survey. Historical data, upon which previous Surveys were
based, have been up-dated with figures for 1998. Moreover historical data have been
updated to include figures on public support
investigation by the
Commission has been deemed as constituting “non-notified” aid. Data are also
modified if aid is reimbursed. Lastly, Member States have continued to verify and, if
necessary, modify a small fraction of historical data thus ensuring that a relatively
high degree of reliance can be placed on the figures.

that after

If the Commission, taking account of changing circumstances, decides on the state
aid character of a measure that was previously considered as not constituting State
aid, the aid amount is fully integrated in the Survey. For example following an
examination of Irish Corporation tax, the Commission decided in December 1998
that this existing regime constitutes State aid. As a result of this decision, levels of
State aid in Ireland have markedly increased when the period 1996-1998 is
compared with 1994-1996 although this increase does not represent any voluntary
change in the Irish Government's state aid policy.

This Survey covers national State aid as defined under article 87 EC Treaty that is
granted by the fifteen Member States and has been examined by the Commission.
General measures, public subsidies that either do not affect
trade and distort
competition or are granted according to article 86(2)2 EC Treaty are not dealt with
is granted to the
in the Survey. The Survey encompasses State aid that
manufacturing, agriculture, fisheries, coal, transport – railways, inland waterways,
maritime and airline –, and financial
In keeping with
improvements already incorporated in previous Surveys, sectorial coverage has
been widened further. Data on aid granted specifically for tourism, media and
culture have been analysed for the first
time. Moreover, given the growing
importance of aid granted to encourage reductions in CO2 and other emission gases,
aid for this purpose has also been highlighted. Lastly, data on aid for employment

services

sectors.

References:

COM (88) 945
COM (90) 1021
COM (92) 1116
COM (95) 365
COM (97) 170
COM (98) 417
COM (99) 148

Undertakings entrusted with the operation of services of general economic interest or having the
character of a revenue-producing monopoly shall be subject to the rules contained in this Treaty, in
particular to the rules on competition, insofar as the application of such rules does not obstruct the
performance, in law or in fact, of the particular tasks assigned to them. The development of trade
must not be affected to such an extent as would be contrary to the interests of the Community.

77

and training in all sectors of the economy have been included in the Survey for the
first time.

10. When comparing the trends and patterns of national State aid between each
Member State, the analysis concentrates on the annual average over the three-year-
period 1996-1998. Where appropriate, the annual averages for the period 1994-
1996 are given by way of comparison3. Given that annual figures do not always
allow for reliable conclusions to be drawn on changing medium and long trends,
these data are not generally used for purposes of comparison. In regard to the three
new Member States, Finland, Sweden and Austria, who acceded to the Community
in 1995, comparisons between the period 1994-1996 and 1996-1998 are made with
2 and 3 year averages respectively. This will no longer be necessary from the Ninth
Survey onwards. In order to make the averages for the two periods comparable, all
figures are expressed in constant 1997 prices4.

11. General explanations of the methodology used are given in the Technical Annex
(Annex I). The Statistical Annex (Annex II) contains basic statistical data on
national State aid to the manufacturing sector and overall national State aid.
Community Funds and Instruments are therefore not included in national State aid
figures. Information on these Funds and Instruments and the respective data are
given in Annex III.

3

4

As the basic principle of comparing three year periods overlapping by one year has been maintained,
the annual Eighth Survey’s reference period (1994-1996) corresponds with the biennial Sixth
Survey’s reference period (1994-1996).
Figures for national state aid to manufacturing in current prices are given in Annex II, the Statistical
Annex on National State aid.

88

PART I - AID TO THE MANUFACTURING SECTOR

Volume and trend of aid

12.

State aid to the manufacturing sector accounts for 35% of the total volume of aid
granted in the Community thereby continuing to attract more aid than any other
sector. The analysis of this aid therefore remains the centrepiece of the Survey.

Community totals

13. Table 1 shows the annual amounts of aid to the manufacturing sector in the

Community in the years 1994 to 1998.

Table 1

State aid to the manufacturing sector in the Community 1994-1998
Annual values in constant prices (1997)

1994

1995

1996

1997

1998

Million euro

EUR 15
EUR 12

40341

39615
38441

34486
33357

33730
32470

29702
28400

The figures above confirm that the trend in aid granted in the Union has continued
on the gradual downward path observed since 19935.

A downward trend is also seen when, as in Table 2, aid to the manufacturing sector
is expressed as a percentage of value added and per person employed in this
sector6.

5

6

In comparison with the data presented in the Seventh Survey, the figures above are all marginally
lower reflecting the revisions carried out by Member States

Since a small but not exactly quantifiable part of the aid amounts has to be attributed to the service
sector, the figures shown may be slightly overestimated.

99

Table 2

State aid to the manufacturing sector in the Community
Annual values 1994 to 1998*

1994**

1995

1996

1997

1998

In per cent of value
added

3,0

2,8

2,5

2,3

2,0

1357

1298

1182

1151

1007

In euro per person
employed

* at constant 1997 prices
** estimated EUR 15

Expressed in per cent of value added in the manufacturing sector, aid levels have
dropped continuously from 1994.
The average amount of aid per person employed in the manufacturing sector
€
dropped each year from

1357 in 1994 to

1007 in 1998.

€

1100

Comparisons between Member States

14. Table 3 compares the average annual levels of aid in the manufacturing sector for
each Member State7 for the periods 1994-19968 and 1996-1998, expressed in per
cent of gross value added and aid amounts per person employed in this sector.
Absolute amounts of aid are also given.

Table 3

State aid to the manufacturing sector in the Community
Annual averages 1994 – 1996 and 1996 – 1998

In per cent of value
added

In euro per person
employed

In million euro

Austria

Belgium

Denmark

Germany

-OldLänder

-NewLänder

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden

United Kingdom

EUR 15

1994-1996
1,3

1996-1998
1,4

1994-1996
654

2,5

2,6

3,8

:

:

4,8

2,3

1,6

1,7

1,3

5,5

2,2

1,1

1,4

0,8

0,6

2,8

1,9

2,9

2,6

:

:

4,9

2,1

1,6

2,0

1,9

4,4

2,3

1,1

1,0

0,8

0,7

2,3

1996-1998

719

1093

1433

1434

435

6021

997

691

959

1131

1458

1955

1476

735

188

441

334

1994-1996
455

1996-1998
495

931

607

16201

3080

13121

592

1883

366

3607

240

11040

46

602

272

330

732

712

11463

2856

8607

616

1800

391

4481

416

8864

48

629

195

344

1358

1454

1376

1252

1941

451

8783

925

769

928

895

909

2419

1400

702

263

421

317

1292

1113

38531

32639

Averages in 1997 prices

7

8

Germany has been divided into the old and new Länder in order to show clearly the different
development in the two German areas, marked by the unprecedented adjustment process of the new
Länder economy to a market system.
Note that as in the 6th Survey, the average of the 1994-1996 figures in Table 1, which do not contain
figures for the new Member States in 1994, is slightly lower than the overall EU average in Table 3.

1111

15. Annual average aid for the manufacturing sector in the EU during the period 1996-
1998 is about 33 billion euro representing a decrease of 15% in comparison with
1994-1996. This decrease is almost exactly the same as that reported in the
previous Survey. It is evident from Table 3 that the overall reduction of aid in
absolute terms in the Community is almost entirely due to the continued decreases
in aid granted in the new German Länder and Italy. Whilst reductions are also seen
in Belgium, Spain and Portugal, aid levels in the ten other Member States have
increased. Of these ten Member States, there appears to be a gradual long-term
upward trend in aid levels in Austria, Denmark, Ireland, Luxembourg and Sweden.
Differences in the absolute levels of aid granted by Member States to their
manufacturing industries therefore remain considerable.

16. When considering the overall differences in the Community under the aspect of
cohesion, Table 3 shows that the volume of aid in the four cohesion countries has
increased from 8 to over 9% of total aid to the manufacturing sector in the
Community. The share of the four big economies has decreased from 84% during
the previous period to 80% during the period under review. In this context it should
also be noted that in addition to national state aid, the manufacturing sector benefits
from Community interventions via the Structural Funds (see Annex III). In relative
terms, the largest beneficiaries of this expenditure are the four cohesion countries,
which see their relative aid position improved to a level that better reflects their
weaker socio-economic situation. However, the effectiveness of these Community
instruments in reducing disparities depends crucially on their not being outweighed
by an unbalanced development in the use of state aid measures in other Member
States.

1122

17. Expressed as a percentage of value added, the highest levels of aid granted to the
manufacturing sector in 1996-1998 are to be found in Greece and Italy (See Figure
1). Both these countries rank high above Community average, although the long-
term decreasing trend in Italy continues. Whilst the increase seen in Ireland is due
in large part to the inclusion for the first time of figures on an Irish tax scheme that
is now being phased out, levels of national State aid in Ireland remain below the
Community average.

Figure 1
State aid to the manufacturing sector
As percentage of value added (annual averages 1994–1996 and 1996–1998)

t
n
e
c
r
e
p

6

5

4

3

2

1

0

AU*

B

DK

D

GR

E

FIN*

F

IRL

I

L

NL

P

S*

UK

1994 - 1996

1996 - 1998

EUR
15

* duringtheperiod 1993-1995thesecountries werenot yet members of theEU

1133

18.

In spite of a continued strong reduction, aid per person employed in Italy is the
highest of all Member States during the period 1996-1998. Italy is followed by
Luxembourg, Ireland, Denmark and Germany. The high but decreasing figure for
the new German Länder is due both to the high level of aid granted and a sharp
decline in the number of employees engaged in manufacturing in this part of
Germany. The continued decrease reflects that the peak of the restructuring process
following German reunification in 1990 was already reached during earlier review
periods. At the same time, aid per person employed in the old Länder is among the
lowest in the Community. The group of low aid givers comprises, in descending
order, Portugal, the United Kingdom and Sweden.

1144

Aid Objectives

19. Aid to the manufacturing sector is classified according to the principal purposes for

which it is given or the sector to which it is directed, as follows:

Horizontal objectives

- Research and Development
- Environment
- Small and medium-sized enterprises
- Trade
- Energy saving
- Other objectives (mainly rescue and restructuring)

Particular sectors

- Shipbuilding
- Steel
- Other sectors

Regional objectives

- Regions falling under Article 87(3)a
- Regions falling under Article 87(3)c

However in some Member States, aid classified under research and development or
small and medium-sized enterprises is administered through sector specific R&D
and SME programmes. Furthermore aid classified under the primary objective of
regional aid and approved according to the regional aid guidelines may in fact be
paid to small and medium-sized enterprises, for research and development, training
and employment.

Consequently, conclusions about changes from one objective to another over time
and, notably, conclusions about differences in objectives between Member States
can only be drawn with caution. Table 4 gives the breakdown of aid to the
manufacturing sector according to objectives during the period 1994-1998, and
Table 5 indicates the changes over time for the three main objectives pursued.

20. Table 4 shows that during the period under review, 57% of manufacturing aid in
the Union is spent on regional objectives with most being targeted at the least
prosperous areas, the so-called Article 87(3)a regions9. The figures include aid
amounting to an average of 3514 million euro per year that is granted to the new
German Länder by way of the Treuhandanstalt (THA) and its successors. If no
account were taken of this exceptional aid, aid for regional purposes would
represent 52% of total aid to manufacturing, (up from an equivalent 47% during the
previous reporting period).

21. Aid granted for horizontal objectives is ranked second with 35%. Amongst these,
support for research and development10 is given highest priority followed by

9
10

A list of these regions is given in Annex I, point 9.2.
For the reasons explained in Annex I, point 11.1, the R&D figures contained in Table 4 may be
underestimated.

1155

support of small and medium sized enterprises. However the category of aid for
rescue and restructuring aid to
horizontal objectives also includes 8% for
manufacturing.
the highly
distortive effects of this latter type of aid are normally not matched by important
positive externalities. Such aid has, therefore, to be very strictly controlled. It is
discussed further under point 38, ad-hoc aid.

In contrast with the above-mentioned objectives,

22. Only some 8% of industrial aid in the Community is spent on particular sectors
with over two thirds going to shipbuilding and steel. (See Table A5/16.) Given that
these sectors are often found in regions that qualify for regional assistance, aid to
these sectors also contributes to more general regional support policies.

1166

Table 4

State aid to the manufacturing sector 1996-1998
Breakdown of aid according to sector and function

SECTORS / FUNCTION

AU

B

DK

D

GR

E

FIN

F

IRL

I

L

NL

P

S

UK

per cent

EUR
15

Horizontal Objectives

Research & Development
Environment
SME
Trade
Energy saving
Other Objectives (including Rescue
and Restructuring.)

Particular Sectors

11
77

Shipbuilding
Other sectors

Regional Objectives

Regions under 87(3)c
Regions under 87(3)a

69

30
10
15
0
1
12

3

0
3

29

23
6

54

16
1
16
2
0
20

13

0
13

33

33
0

90

24
33
3
4
27
0

9

8
<1

1

1
0

27

10
1
9
0
2
5

5

3
2

68

5
63

2

0
0
1
1
0
0

1

1
0

97

0
97

33

10
1
15
0
1
6

52

37
15

15

11
4

72

36
1
17
10
7
1

11

9
2

17

17
0

52

27
1
7
3
0
13

8

4
4

40

25
15

40

5
0
1
1
0
33

5

0
5

55

0
55

23

3
0
8
2
0
10

4

2
2

72

3
69

33

7
4
21
1
0
0

0

0
0

67

67
0

82

20
10
3
4
34
11

6

6
0

12

12
0

65

6
0
6
0
5
48

17

6
11

18

0
18

44

10
14
16
0
4
0

0

0
0

56

56
0

39

11
0
21
6
1
0

1

1
0

60

44
16

35

11
2
9
2
3
8

8

5
3

57

11
46

TOTAL

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

1177

Table 5

State aid to the manufacturing sector 1994 – 1996 and 1996 – 1998
Breakdown to main objectives

Horizontal Objectives

Particular Sectors

Regional Objectives

per cent

1994 -1996 1996 -1998 1994 -1996 1996 -1998 1994 -1996 1996 -1998

Austria

Belgium

Denmark

Germany

ofwhichTreuhand

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden

United Kingdom

EUR 15

75

41

86

20

14

26

74

62

22

27

33

75

40

35

40

31

68

54

90

27

2

33

72

52

40

23

32

82

65

44

39

35

3

34

13

6

2

62

2

8

9

9

2

9

48

0

1

11

3

13

9

5

2

52

11

8

5

5

0

6

17

0

1

8

22

25

1

73

45

84

13

23

31

69

65

65

17

12

65

59

58

29

33

1

68

31

96

15

17

40

55

72

67

12

18

56

60

57

23. As regards the development over time of the distribution of the manufacturing sector aid
between the different main objectives, overall regional aid levels have remained fairly
constant. Apart from Greece none of the other Member States with shares of regional aid
to manufacturing that are above the EU average, are cohesion countries.

Levels of aid granted to particular sectors are, for the first time, dropping not only
throughout the EU but also in almost every Member State. The apparent increase in
Finland is due to the fact that shipbuilding aid was first reported for the period 1996-
1998. On a year-on-year basis, sectorial aid is decreasing in this country too. The reason
for this across-the board reduction is the strong decrease in aid to the steel industry and
decreases in most countries in aid to shipbuilding. The relatively high, but decreasing,
level in Spain is due the restructuring aid that has been granted to the shipbuilding
industry.
In contrast with the downward overall trend in aid granted to particular sectors, the
increasing overall trend in aid granted for horizontal objectives is not reflected in all
Member States. Whilst the share of this type of aid has risen in eight countries, it has

1188

dropped in the other seven and remains well above the EU average in Denmark, Finland
and the Netherlands.

24. However, if rescue and restructuring aid which is an important part of horizontal aid is
taken out – it will be analyzed below under ad-hoc aid - an analysis of the remaining
important part of horizontal aid, namely aid that supports R & D, SMEs, environmental
protection and energy saving shows a slightly different picture: now increases are being
seen in 9 Member States. Figure 2 clearly shows the vast disparities between Member
States in respect to the level of State aid for these four objectives which are generally
agreed to generate important externalities. Whilst figures, particularly for Greece, hide the
fact that some aid classified as regional aid also supports horizontal objectives, it cannot
be ignored that in many Member States, State aid policy has been more clearly directed
towards these objectives since 1994-1996.

Figure 2
Aid for R & D, SMEs, Environmental Protection and Energy Saving as a
Percentage of aid to Manufacturing

100

80

60

40

20

0

g
n
i
r
u
t
c
a
f
u
n
a
m
o
t
d
i
a

f
o

e
g
a
t
n
e
c
r
e
P

1994-1996

1996-1998

AU

B

DK

D

GR

E

FIN

F

IRL

IT

L

NL

P

SW UK EUR

15

1199

25. The trends and patterns of aid that is granted to the manufacturing sector in each Member

State is as follows:

-

-

-

-

-

-

-

-

-

In Austria, overall increases are due to a rise in R & D and regional aid levels. Along
with Denmark, Finland, and the Netherlands, horizontal aid in Austria accounts for the
largest share of aid to manufacturing with R&D, environment and SMEs being the
main beneficiaries. Sector specific spending, most of which is granted to the steel
industry, is low.

In Belgium, the downward trend in levels of aid is due to a single sectorial scheme
being abolished in 1996 whilst in absolute terms aid has remained fairly constant in all
other areas. As a result the fraction of aid granted for horizontal and regional objectives
has increased.

In Denmark, 90% of all aid to manufacturing is granted to support horizontal
objectives. The absolute increase in the level of State aid to manufacturing is due to the
greater level of support afforded to energy saving and environmental protection,
mainly in the form of exemptions from energy/CO2 taxes. Decreasing levels of sector
specific aid (9%) reflect reductions in aid to shipbuilding. Regional aid in Denmark is
the lowest in the Community.

In Germany, the proportion of horizontal aid is gradually increasing as regional aid
levels drop. Accounting for 27%, which is low compared with the average in the
European Union, more than two thirds of this aid is spent on R & D and on SMEs.
Sector specific aid (5%) continues to decrease. The most important item is regional aid
(68%), less than half of which comprises Treuhand aid for the New Länder. This aid
has decreased considerably in absolute terms over the reporting periods.

In Greece, most aid is classified as regional aid that has increased over the two periods.

In Spain, 33% of the aid is directed towards horizontal objectives and mainly for SMEs
and R & D where support increased since 1994-1996. Sector specific aid amounts to
52% of all aid to the manufacturing sector and reflects continued support to the
shipbuilding industry. The overall decrease in sectorial aid is due to substantial
reductions in aid to steel.

In Finland, 72% of the aid is spent on horizontal objectives, mainly on R&D and
SMEs. The increase in the absolute level of aid is due to aid for shipbuilding that was
recorded for the first time in 1997.

In France, aid directed to the horizontal objectives R & D, environment, energy saving
and SMEs has in absolute terms remained fairly stable. The overall
increase in
manufacturing is due to a significant increase in regional aid, together with an increase
in aid to shipbuilding and a single ad-hoc case.

In Ireland, with the exception of aid for specific sectors, there have been increases in
absolute terms across many objectives and sectors. However the largest increase is due
entirely to the inclusion of data on ICT for the period 1996-1998.

2200

-

-

-

-

-

-

In Italy, absolute aid levels have decreased in all sectors and objectives. However as
the decrease in regional aid is proportionately less than in other areas, its share has
increased over the two reporting periods.

In Luxembourg, the most important item is regional aid (67%) which has increased
slightly over the two periods. Spending in all other areas is fairly steady.

In the Netherlands, horizontal aid (82%) is by far the biggest item and considerably
higher than most countries except Denmark. The absolute increase in aid is due to the
growing resources that are being directed towards environmental protection and energy
saving to a large extent due to exemptions from energy/CO2 taxes.

In Portugal, the small increases in levels of spending for SMEs and energy saving were
completely offset by the considerable reduction in aid granted to the steel industry
sector. Whilst overall manufacturing aid has decreased, the share of horizontal and
regional aid increased.

In Sweden, 44% of the aid is spent on horizontal objectives, mainly on SMEs and
R&D. The increase in absolute levels of aid is due to the increase in environmental aid
that was only partly offset by a small reduction in regional aid.

In the United Kingdom, regional aid (60%), over a quarter of which is spent
in
Northern Ireland, accounts for the greatest share of manufacturing support. The
absolute increase in UK aid levels is due to a 6% rise in regional aid spending.
Horizontal aid accounts for 39% of which aid to R&D and SMEs are the main items.

The above analysis only considers patterns and trends in national State aid expenditure.
A part of this expenditure is cofinanced by Community funding that also benefits the
manufacturing industry in the EU. Figures on Community funding are provided
separately in Annex III.

2211

Aid to other Sectors and objectives

Shipbuilding

26.

In shipbuilding, a sub-sector of the manufacturing sector, the grant of aid was governed
during the reporting period by the Seventh Shipbuilding Directive11, which applied from
the 01/01/1991 until the 31/12/1998. It was then replaced by Council Regulation 1540/98.

Table 6 shows contract related operating aid covering new constructions, conversions and
fishing vessels and thus reflects the aid intensities for which the Commission sets ceilings
when implementing the shipbuilding directive. The aid ceilings under the Directive
prevailing during the reporting period were 4,5% of contract value both for ships with a
contract value of less than
10 million and for conversions and, 9,0% of contract value
€
for ships with a contract value of more than

10 million.

€

In addition to operating aid, the shipbuilding sector also received aid for restructuring.
During the period 1996-1998 restructuring aid averaged 903 million euro per year and
594 million), France
was given in Germany (
€
€
655 million
(
11 million). This is a sharp increase on the
€
27 million),
granted during the period 1994-1996 in the following countries: Belgium (
Germany (

90 million) and Portugal (

200 million), Greece (

292 million), Greece (

10 million), Spain (

8 million), Spain (

326 million),

€

€

€

€

€

€

€

€

Given decreases in operating aid in all countries except France, the overall average annual
1.551 million in 1994-
level of all aid granted to this sector marginally decreased from
1996 to
1.549 million in 1996-1998. When relating shipbuilding aid to the sector's value
added, the high level of support afforded to the sector can be observed. According to
Table 3, aid for the manufacturing sector amounts to 2.3% of the sector’s value added. In
contrast, for shipbuilding, aid represented some 22% of the sector’s value added at factor
cost during 1996-1998.

€

11 OJ L 380 of 31.12.1990.

2222

Table 6

Aid to shipbuilding in 1996-1998 in per cent of contract values of ships

1996

1997

1998

Small
Ships

Large
Ships

Total

Small
Ships

Large
Ships

Total

Small
Ships

Large
Ships

Total

Austria

Belgium

Denmark

Germany

France

Finland

Spain

Greece

Ireland

Italy

Luxembourg

4,5

4,5

0,0

4,3

-

9,0

6,7

9,0

8,0

-

8,9

6,6

9,0

7,4

-

4,5

4,5

0,0

0

2.9

-

9,0

6,4

9,0

5.3

7.6

-

8,9

6,3

9,0

5.3

7.4

-

4.5

4.5

0

0

0.5

-

4,5

9,0

8,7

4,5

9,0

8,9

4.5

9

6.4

9

3.1

4.3

-

9

8.1

6.4

8.6

3.1

3.9

-

8.9

Netherlands

3,1

4,8

3,2

3,2

3,8

3,6

2.6

4.4

4.1

Portugal

Sweden

United Kingdom

4,3

6,0

6,0

0

8.7

8.7

-

-

-

€

10 million. For these the maximum aid
€

10 million. For these the maximum aid

* Small ships are those with a contract value of less than

intensity allowed by the 7th Shipbuilding Directive is 4,5 % of contract value.

**Large ships are those with a contract value of more than

intensity allowed by the 7th Shipbuilding Directive is 9,0 % of contract value.
- Note that a dash indicates missing information, whereas a zero indicates no aid.

2233

27. The annual average level of State aid granted to European shipyards during the period
72 million.
1996–1998 for the construction of ships for developing countries dropped to
€
This represents a reduction of 65% when compared with the annual average of
203
million granted during the period 1994–1996. The distribution by country is given in
Table 7.

€

Table 7

Shipbuilding development aid - as decided upon by EC

1994

1995

1996

1997

1998

Million euro

Germany

Spain

Netherlands

France

Total

189

0

0

0

189

106

58

34

40

238

101

33

48

0

182

7

9

9

0

3.0

0

7.5

0

25

10.5

28.

In order to put the above aid figures into context, Table 8 presents information on the total
number of ships for which aid was granted during the period 1994-1998. As would be
expected the 1995 peak in building corresponds with the 1995 peak in operating and
development aid granted to Europe’s shipbuilders.

Table 8

Shipbuilding – Total new building supported by State aid

1994

1995

1996

1997

1998

18

35

3

3

67

49

0

6

13

65

40

8

0

14

28

0

3

5

50

10

4

28

37

22

0

0

181

171

156

Denmark

Germany

Spain

Finland

France

Italy

Netherlands

Portugal

United Kingdom

23

79

39

-

39

38

58

6

9

Total

285

21

153

72

-

72

111

73

0

12

514

2244

The steel industry

29.

In the steel sub-sector of the manufacturing sector, the bulk of the aid granted during the
period covered by this Survey was for restructuring and derives from eight cases that were
approved on the basis of Article 95 ECSC Treaty. State aid that benefited ECSC products
in the period under review was also granted according to the fifth and sixth Steel Aid
Codes of 1991 and 199612 respectively. Aid granted outside the ECSC steel sector was
regulated under the 1988 Framework for certain steel sectors not covered by the ECSC
Treaty13.

€

Together these aids amounted to an annual average of around
260 million in 1996-1998,
reflecting a significant decrease of over 80% compared with the previous period 1994-
1996 when the annual average was
1530 million. These figures do not include the
marginal amounts of aid granted to this sector in the context of schemes supporting the
objectives of R & D and environmental protection. However they do show that the major
restructuring and concomitant capacity reductions that were undertaken since 1994 in the
new German Länder, Spain, Italy, Portugal, Ireland, and Austria are now almost complete.

€

12 Commission Decisions n° 3855/91/ECSC of 27.11.1991 and 2496/96/ECSC of 18.12.1996 establishing

Community rules for State aid to the steel industry

13 Framework for certain steel sectors not covered by the ECSC Treaty, 13.12.1988.

2255

The motor vehicle industry

30. Whilst there are no aid schemes in the EU that are specific to this sub-sector, State aid is
granted to the sector, mainly by way of regional, rescue and restructuring and training aid.
The award of this type of aid by Member States remains within tight limits that are
imposed by a specific motor vehicle framework.
It is quite difficult at present to draw any conclusions as regards the general trend because
of the very small number of cases. A comparison of the two periods shows an 18%
decrease from

581 million to

477 million.

€

€

Table 9

State aid approved to the motor vehicle sector in the years 1994-1998
(Not including cases below the notification ceilings)

1994

1995

1996

1997

1998

Million euro

Austria

Belgium

Germany

Spain

Finland

France

Italy

Netherlands

Portugal

Sweden

United Kingdom

-

0

298

36

-

0

227

0

0

-

12

0

32

3

318

0

0

0

7

0

0

0

10

0

340

202

0

83

0

0

103

0

72

26

0

59

1

6

6

109

6

0

1

66

2

6

163

9

0

52

7

0

0

0

101

Total

573

360

810

280

340

2266

Foreign Direct Investment

31. Government support measures to Foreign Direct

Investment outside the EU may
constitute State aid. Nevertheless they may also be compatible with the common interest
if they promote the competitiveness of European Industry, e.g. by assisting the
development of SME’s, or contribute to other Community objectives such as the
adjustment of the economies in transition or economic development in the Third World.
Since 1993 a small number of schemes have been proposed by Member States specifically
for this objective and subsequently approved by the Commission. A gradually developing
body of information is being provided by Member States and a provisional overview of
EU-wide State aid devoted to this theme is presented hereunder. The programmes
concerned are only available to SME’s however their geographical coverage is world
wide thus responding to a need not only to reinforce support to the major sources of
employment in the Union but also to facilitate the widening of their horizons.

Table 10
State aid for Foreign Direct Investment carried out by SME’s

1994

1995

1996

1997

1998

Million euro

Grants

Loans

9.7

0.0

10.8

1.6

9.4

0.8

6.3

0.8

18.0

0.4

Guarantees

2.5

8.3

11.4

26.0

10.0

Total

12.2

20.7

21.6

33.2

28.4

CO2 Emission Tax Schemes

32.

Included in the category “aid for environmental protection” is a sub-category of schemes
that have been established by some Member States to encourage a reduction in emissions
of CO2 and other gases resulting from the combustion of fossil fuels and to support the
use of renewable sources of energy. The principle rationale for such schemes is the need
for the EU and the individual Member States to meet the commitments they entered into
under the terms of the Kyoto agreement and the more general policy aim of achieving
sustainable development.
Two types of state aid instrument are used and often in combination: tax exemptions and
grants. In general the Member States concerned have established schemes that levy taxes
on energy or on CO2, NOx and SOx emissions. Given that very few countries have as yet
set up such measures, a concern expressed by Member States is that the extra tax burden
may result in their industries’ competitive position being undermined. Therefore the tax
schemes have been introduced in a progressive way with energy-intensive industries
being granted temporary exemptions.

2277

The second element of many of the State aid schemes in question is the extra incentive
provided to industry by way of grants for the adoption of modern technology that will
increase the use of renewable energies and contribute to energy saving and reductions in
the level of emissions. The grants are paid from emission tax receipts or from the general
budget.

Currently Denmark, which accounts for the bulk of this aid, the Netherlands, Germany,
Sweden and the UK use such measures. In the near future many other Member States are
expected to do likewise.

Table 11

State aid for CO2 emission tax schemes

1994

1995

1996

1997

1998

Million euro

165

90

165

196

164

0

2

0

2

4

0

6

2

4

4

6

1

4

2

6

1

0

0

22

1

169

102

180

209

187

Denmark

Germany

The Netherlands

Sweden

UK

Total

2288

Types of aid instruments

33. Table 12 gives an overview of the use of the various types of aid instruments in the

Member States.

Table 12

State Aid to the manufacturing sector 1996 – 1998
Breakdown according to type of aid

TYPE OF AID

per cent

Group A

Group B

Group C

Group D

Grants

Tax
exemptions

Equity
participation

Soft loans

Tax
deferrals

Guarantees TOTAL

Austria
Belgium
Denmark
Germany
Greece
Spain
Finland
France
Ireland
Italy
Luxembourg
Netherlands
Portugal
Sweden
United Kingdom

76
60
63
58
97
88
84
28
60
55
93
66
84
60
94

0
28
31
12
0
<1
3
47
29
37
6
19
7
18
1

EUR 15

58

23

0
4
0
0
0
3
1
13
7
4
0
0
2
3
0

4

19
4
6
23
3
9
13
9
0
1
2
5
7
18
2

11

0
1
0
1
0
0
0
1
0
0
0
8
0
0
1

1

5
3
1
5
0
0
1
3
4
2
0
2
0
0
1

3

100
100
100
100
100
100
100
100
100
100
100
100
100
100
100

100

The overall situation in the period 1996-1998 is very similar compared with that presented
in the Sixth Survey for the period 1994-1996. Grants, interest rate subsidies and tax
exemptions, which are classified as group A forms of intervention, are still by far the most
frequently used form of aid in the Community. Within this group and with the exception
of France, direct grants are more often employed than tax exemptions.

34. Aid in the form of state equity participation, classified under group B, represents only 4%
of all aid to the manufacturing sector granted in the European Union. However in one
Member State, France, equity participation is relatively important.

2299

35. Aid classified in group C encompasses loans at reduced interest rates and tax deferrals.
Whereas tax deferrals - mainly accelerated depreciation and the constitution of tax-free
reserves - is the form that is least used in the Community, with the exception of the
Netherlands, where it accounts for 8% of all manufacturing aid, soft
loans are an
important instrument in Germany, Austria, Sweden and Finland.

36. The share of guarantees in overall levels of aid, group D, continues to be relatively limited

in all Member States.

Figure 3

State aid to the manufacturing sector
Distribution by budgetary expenditure and tax foregone 1996-1998

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

AU

B

DK

D

GR

E

FIN

F

IRL

I

L

NL

P

S

UK

EUR
15

Budget Expenditure

Tax Foregone

37. Figure 3 gives a breakdown of aid to the manufacturing sector according to the mode of
financing. Budgetary expenditure, which is composed of grants, equity participation, soft
loans, and guarantees, is the preferred way of financing aid in the European Union. This
holds particularly for Austria and Spain, where all or virtually all aid is financed through
the budget, and Finland, Luxembourg and the United Kingdom, where more than 90% is
financed through the budget. In contrast, tax foregone, i.e. tax rebates and tax deferrals, is
used to the largest extent in Belgium, Denmark, France, Ireland and Italy.

3300

State aid given on an ad-hoc basis

38. The foregoing analysis of State aid data attempts to identify the medium- and long-term
tendencies in the EU Member States. However these data do not only relate to State aid
given by way of schemes that promote horizontal, sectorial or regional objectives, but also
comprise State aid that is granted ad-hoc, i.e. outside such schemes. Since an analysis of the
resort by the aid awarding authorities to financial mechanisms that are not pre-established
sheds an interesting light on the more short-term necessities of national state aid policy, ad-
hoc aid is presented below. This allows a clearer picture of both the current situation and the
underlying trends in the Union. For completeness reference is also made to ad-hoc aid in the
Air Transport and Financial Services sectors.

39. The bulk of ad-hoc aid is given for rescuing or restructuring companies. The sectorial
distribution of aid given for this objective is uneven and often reflects important structural
changes in certain areas of the EU economy. For example in manufacturing, slightly more
than 50% of ad-hoc aid granted during 1994-1996 and 42% of ad-hoc aid granted during
1996-1998 supported the restructuring of companies in the steel and shipbuilding sectors.
The remainder has contributed almost exclusively to rescue or restructure about 55
companies. In contrast, ad-hoc aid granted in the new German Länder for restructuring
purposes benefits thousands of companies operating in a vast variety of sub-sectors. The
distribution of this latter type of ad-hoc aid within the manufacturing sector is therefore more
even.

40. Data presented in the Sixth and Seventh Surveys suggested that the level of ad-hoc aid,
which had been granted to the EU’s manufacturing sector, passed its peak in 1993/94.
Current data confirm this trend. As shown in Table 13, ad-hoc aid decreased from 11% of
manufacturing aid in 1994 to 4% in 1998. If the above mentioned aid to the new German
Länder is added, the drop is slightly greater, falling from 37% in 1994 to 12% in 1998. Total
ad-hoc aid has decreased from 18 billion euro to 7 billion euro. In contrast with this tendency
ad-hoc aid in the financial services sector has continued to increase.

3311

Table 13

State aid on an ad-hoc basis and Treuhand aid awarded in the manufacturing, financial
services and air transport sectors in the Community in the years 1992 to 1998

1992
€

1993
€

1994
€

1995
€

1996
€

1997
€

1998
€

In
million

In
million

% of
total
mfr aid

% of
total
mfr aid

In
million

In
million

% of
total
mfr aid

% of
total
mfr aid

In
million

% of
total
mfr aid

In
million

In
million

% of
total
mfr aid

% of
total
mfr aid

Ad-hoc aid to
manufact.

Treuhand
aid*

2422

6

5236

12

4483

11

3482

9

3126

9

3624

11

1339

5161

13

8774

20 10692 26

6480

17

4693

14

3522

10

2329

4

8

Total aid
in manufact. 39062 100 44797 100 40341 100 39615 100 34486 100 33730 100 29702 100

ad-hoc aid
in Financial
services

ad-hoc aid in
Air transport

Total ad-hoc
aid

795

478

2060

2811

3062

3171

97

2425

2371

1395

1635

295

7583

14802

18078

14393

12025

11843

7134

* aid in Germany given via the Treuhandanstalt (THA) or the Bundesanstalt für

vereinigungsbedingte Sonderaufgaben (BvS)

** mfr: manufacturing

41. Table 14 below compares the annual averages of ad-hoc aid, including aid for restructuring
the industry in the new German Länder (Treuhand), in the periods 1994-1996 and 1996-1998
€
in manufacturing, financial services and air transport. Compared with
11 billion of aid to
manufacturing in the previous period, the overall amount has come down to a little more
€
6 billion, which is a considerable decrease at Community level. On the level of the
than
Member States, increases are seen only for France and the Netherlands. The others have all
reported decreasing levels of ad-hoc aid awards with Germany enjoying the most important
€
4 billion, this country accounts for the bulk of the
fall. Indeed with a decrease of more than
overall reduction of ad-hoc aid observed in the Community. However levels remain
relatively high in Germany, France, Italy and Spain.

42. As regards the different aid forms used when awarding ad-hoc aid in the manufacturing
sector, grants make up half of all such aid, soft loans and equity participation/capital
injection account for 28 and 18% respectively whilst the use of guarantees appears to be low
at about 5%.

3322

43. When comparing Table 14 with Table 3, the importance of ad-hoc aid on the overall trends
in aid to manufacturing can be seen. Of the overall 5.5 billion decrease seen in Table 3,
almost 5 billion is due to the reduction in ad-hoc aid.

44.

In the service sectors ad-hoc aid is decreasing in all Member States concerned except France
and Italy. In these two countries the recent strong rise in ad-hoc aid that was granted to their
respective financial services sectors have contributed to the overall increase. However it is
expected that the peak has been reached and that the structural adjustments are almost
complete in this sector and that, as in the case of airlines, ad-hoc aid to services will fall in
future.

Table 14

State aid granted on an ad-hoc basis in the manufacturing sector,
Treuhand included and, financial and air transport services.
Annual averages 1994-1996 and 1996-1998

Manufacturing

€

Services

€

In

million

In

million

1994-1996
64

28

7905

7288

10

955

197

17

1671

29

129

Austria

Belgium

Denmark

Germany

OfwhichTreuhand

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden

United Kingdom

1996-1998 1994-1996 1996-1998

26

4

3835

3514

8

757

1

566

17

808

50

28

267

461

2427

46

393

288

2985*

823

252

136

Total

11006

6103

3847

4231

Averages in 1997 prices
*including one ad-hoc case in the media sector.

3333

German State aid to the new Länder

45. During the period under review, the process of reorganising the economy of the new
Länder of Germany continued. The reunification of Germany is of particular importance
for Community State aid policy. In 1996-1998, a yearly average volume of
8.6 billion
was granted in aid to manufacturing in the new Länder. This, although on a high level, is a
considerable decline in comparison with 1994-1996, when
13 billion were spent. In
addition, this reduction is accompanied by a decrease in aid to the old German Länder,
which has fallen from
2.8 billion in 1996-1998. The
breakdown into the different aid instruments used in the new Länder is given in Table A4
in Annex II.

3 billion during 1994–1996 to

€

€

€

€

In the context of privatising the former state-owned companies, aid during the period
under review was also granted via the Treuhandanstalt (THA), the State holding company
set up to administer, adapt, and privatise former East German public undertakings, and its
successor, the Bundesanstalt für vereinigungsbedingte Sonderaufgaben (BvS). As laid
down in the Commission's decisions of 1991, 1992 and 1995 on the interventions of the
THA, some of these interventions constituted aid. This was usually the case where the
THA issued guarantees for loans granted by the banking sector at market rate to its
generally poor-ranking undertakings. Equally, the THA itself borrowed at market rate and
then awarded loans to its undertakings at the same rate.

€

With the exception of some specific aspects of the Rescue and Restructuring guidelines14,
in the period 1996-1998 normal state aid rules applied to the new German Länder.
8.581 million per year
1.456 million per year and loans averaging
Guarantees averaging
were given by THA/BvS. Based on its previous experience, the Commission is of the
opinion that 20% of these amounts can be regarded as aid, which is included in the
Survey. During the same period grants were used for expenditure amounting to an annual
average of

1.507 million.

€

€

14

Community guidelines on State aid for rescuing and restructuring firms in difficulty, OJ C 368, 23.12.1994,
and,
Community guidelines on State aid for rescuing and restructuring firms in difficulty,OJ C 288, 09.10.1999

3344

PART II – AID TO AGRICULTURE

46.

In sectors such as agriculture where a highly developed Community policy is in operation,
the limits for granting State aid are, to a greater extent, determined by this common
policy. Thus, although Articles 87-89 of the EC Treaty apply in principle to agriculture as
to other sectors of the economy, Article 36 specifies that the extent to which these articles
apply to agriculture should be decided by the Council. Hence the Council has limited
Member States' freedom to grant State aid in certain areas of policy:

(i)

Support of markets in most agricultural products (Council Regulations governing
the common market organisations).

Aid, using Community (i.e. EAGGF) resources, is payable only on the basis of
Council rules which provide inter alia for a common system of intervention
buying and export refunds and, further to the reform decisions of May 1992,
compensatory aid in the various sectors for price reductions in conjunction with
compulsory set-aside.

(ii)

Support for improving farm structure (Council Regulation (EEC) No 950/97).

Aid concerning productive investments on agricultural holdings is determined to a
large extent by the provisions of the above-mentioned Council Regulation and
partly Community co-financed.

47. Table 15 presents average annual budget outlays including direct payments, reduction of

input costs and general services at the Community level.

Table 15

Average annual national budget outlays on Agriculture
during 1994–1996 and 1996–1998

Million euro

1994 - 1996

1996 – 1998

EUR 15

14.515

13.339

3355

48.

It may be noted that the concept of total national expenditure encompasses individual
categories of aid, which may present differing levels of relevance in terms of competition
policy. Therefore, it may be argued that aid for measures such as productive investment
and publicity is more likely to potentially have an effect upon trade than aid which is
destined simply to compensate operators for services rendered, for example, access to the
countryside and aid to offset the financial burden of natural disasters. A broadly similar
argument might apply to aid financed by certain parafiscal taxes where, though such aid
from a legal viewpoint is considered as State aid, the economic burden falls exclusively
upon the beneficiaries themselves.

For detailed information on the nature and patterns of overall support granted to
agriculture in the Community, the annual publication by the Commission entitled "The
Agricultural Situation in the Community" should be consulted.

3366

PART III - AID TO FISHERIES

49.

In the fisheries sector, the grant of national aid closely follows the development of and the
limits imposed by the Common Fisheries Policy (CFP) thereby contributing to the
realisation of common objectives. Any conclusion to be drawn from the quantification of
national aid has, therefore, not only to take account of its impact on competition but also
of its impact on attaining the common aim to establish the conditions necessary for
ensuring the viability and future of the fisheries sector.

50. The fisheries market is therefore organised to stabilise prices and unify the Community
market. The rules of fishing provide for the best possible use of available stocks and their
optimum conservation whilst ensuring relative stability of access for fishermen. In
addition to these measures, durable links have been established at international level with
a view to maintaining or developing access to stocks outside Community waters.
Moreover, the incorporation of the structural aspect of fisheries within the framework of
the Structural Funds seeks to ensure the structural adaptation necessary to attain the
objectives of the common fisheries policy. This requires that action in the sector comply
with the objective of establishing a balance between stocks and their exploitation. State
aid is only justified, therefore, if it is in accordance with the objectives of this policy.

51. State aid rules in this sector result from the development of the Common Fisheries Policy.
The criteria and arrangements regarding Community structural assistance in the fisheries
and aquaculture sector and the processing and marketing of its products have been laid
down lastly in Council Regulation 2468/9815. In parallel with the development of the
common fisheries policy, guidelines for the examination of State aid to fisheries have
been developed16. It is within the framework established by them that the Commission
administers the derogation's to the principle of incompatibility of State aid with the
common market (Article 87 (1) of the EC Treaty) provided for in Article 87 (2) and (3) of
the Treaty and in its implementing instruments. Given the current review of the
Community’s Structural Funds, including the Financial Instrument for Fisheries Guidance
(FIFG), the Guidelines will also be subject to review in future.

These rules relate to all measures entailing a financial advantage in any form whatsoever
funded directly or indirectly from the budgets of public authorities (national, regional,
provincial, departmental or local). State aid may be granted only if it is consistent with the
objectives of the common policy. Aid may not be protective in its effect: it must serve to
promote the rationalisation and efficiency of the production and marketing of fishery
products in a way which encourages and accelerates the adaptation of the industry to the
new situation it faces.

In more practical terms, aid must provide incentives for development and adaptation that
cannot be undertaken under normal market circumstances because of
insufficient
flexibility in the sector and the limited financial capacity of those employed in it. It must
yield lasting improvements so that the industry can continue to develop solely on the basis
of market earnings. Its duration must therefore be limited to the time needed to achieve
the desired improvements and adaptations.

15 OJ No L 312/, 20.11.1998, p.19.
16 OJ No C 100, 27.03.1997, p. 12

3377

Consequently the following principles apply:
- State aid must not impede the application of the rules of the common fisheries policy. In
particular, aid to the export of or to trade in fishery products within the Community is
incompatible with the common market.
- Whenever relevant regulations allow, in particular as regards structural policy, Member
States may grant State aid provided such aid complies with the objectives of the common
rules so as not to jeopardise or risk distorting the full effect of these rules; this is why it
must, where relevant, be included in the various programming instruments provided for
under Community rules.
- State aid which is granted without imposing any obligation on the part of recipients and
which is intended to improve the situation of undertakings and increase their business
liquidity or is calculated on the quantity produced or marketed, product prices, units
produced or the means of production, and which has the effect of reducing the recipient's
production costs or improving the recipient's income is, as operating aid, incompatible
with the common market. The Commission examines such aid on a case-by-case basis
where it is directly linked to a restructuring plan considered to be compatible with the
common market.

52. Table 16 provides an overview of the average levels of aid granted by Member States to
this sector during the two periods 1994-1996 and 1996-1998. Table 16 also presents the
same figures as a percentage of value added calculated on the basis of quantities landed
and average prices, whilst Table 17 shows Community intervention in favour of the
Community's fishing fleet,
the commercialisation, and first-stage processing of the
products.

3388

Table 16
State aid to fisheries in per cent of gross value added* in this sector, calculated on the basis of
quantities landed and average prices, and absolute amounts.
Annual averages 1994 – 1996 and 1996 – 1998

In per cent of value
added

In million Euro

1994-1996

1996-1998 1994-1996

Austria

Belgium

Denmark

Germany

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden

United Kingdom

EUR 15

2,4

2,3

7,9

0,2

3,3

14,4

3,5

7,7

8,1

1,1

0,8

7,9

3,3

4,4

3,7

2,3

9,9

4,1

2,3

7,7

3,7

7,2

6,9

1,6

0,9

8,1

3,6

3,9

1996-1998
-

3,05

9,97

16,44

13,87

44,83

2,00

24,53

13,86

81,26

-

6,29

2,53

9,13

-

1,87

9,57

15,96

0,94

64,52

3,48

32,62

13,39

105,75

-

4,52

2,43

8,45

30,16

31,96

293,66

259,71

Averages in 1997 prices

* Value added figures used exclude transformation industry and on-shore production.

Table 17
Community interventions in the fisheries sector in the framework of the
Common organisation of the market and structural policy 1994-1998.

Million euro

1994

1995

1996

1997

1998

Guarantee

35,5

39,2

34,1

33,5

21,2

Guidance

403,5

480,7

475,1

390,4

502,4

3399

PART IV - AID TO COAL MINING

53. During the two periods covered by this Survey aid to the coal industry, in so far as ECSC
coal products were concerned, was regulated by Commission Decision 3632/93/ECSC
adopted under Article 95 ECSC. This Decision will expire on the 23/07/2002, the date of
expiry of the ECSC Treaty.

Under the terms of the previous Commission Decision, 2064/86/ECSC, operating aid,
inherited liabilities and social welfare schemes were notified to the Commission. However
neither inherited liabilities nor social welfare schemes were subject
to an official
authorisation in the relevant State aid decisions if:
- for inherited liabilities, the amounts granted “did not exceed the actual amount of the
inherited liabilities”;
- for social welfare schemes, the amounts granted brought “the ratio between the burden
per mineworker in employment and the benefits per person in receipt of benefit in line
with the corresponding ration in other industries”. Where this condition was not adhered
to, then the amounts exceeding the ceiling were then explicitly authorised in Decisions.

Under the terms of the 1993 Decision, inherited liabilities became an intrinsic part of the
authorisation process and appear in the text of the various Commission Decisions
authorizing aid. Social welfare schemes continue to be treated as before and do not
normally appear in the Decisions. Therefore since 1994 inherited liabilities are included in
the Commission’s annual reports on coal aid whereas social aid is not.

Decision 3632/93/ECSC on State aid to the coal industry also tightened the definition of
aid within this sector to cover:
- any direct or indirect measure or support by public authorities linked to production,
marketing and external trade which, even if it is not a burden on public budgets, gives an
economic advantage to coal undertakings by reducing the costs which they would
normally have to bear;
- the allocation, for the direct or indirect benefit of the coal industry, of the charges
rendered compulsory as a result of State intervention;
- aid elements contained in financing measures taken by Member States in respect of coal
undertakings, which are not regarded as risk capital, provided to a company under
standard market-economy practice.

To increase transparency, Member States were also required, by 31 December 1996 at the
latest, to enter aid in their “national, regional or local budgets or to channel it through
strictly equivalent mechanisms”. Moreover all aid received by coal undertakings has to be
shown together with their profit and loss accounts “as a separate item of revenue, distinct
from turnover”.

Finally, operating aid was defined as “the difference between production costs and the
selling price freely agreed between the contracting parties in the light of the conditions
prevailing on the world market”. Decision 3632/93/ECSC also stipulates
that
“arrangements existing at 31 December 1993, under which aid was granted in conformity
with the provisions of Decision 2064/86/ECSC and which are linked to agreements
between producers and consumers, exempted under Article 85(3) of the EC Treaty and/or
authorised under Article 65 of the ECSC Treaty, must be modified by 31 December 1996”

4400

to bring them into line with the provisions of the new Decision 3632/93/ECSC. For
Germany and Spain this has resulted in an increase in the aid amounts from the public
budget as their coal reference price systems have been abolished.

54. Both Commission Decisions enabled aid to be given for

restructuring,
modernisation and rationalisation to take place in the coal industry with a view to
increasing competitiveness. However most coal production in the Community remains,
and will continue to remain, uncompetitive vis à vis imports from third countries, despite
some increase in productivity and a major reduction in the numbers of employees. Given
that the world market in coal is stable with abundant supplies from a wide variety of
sources and that, even in the long term and with an increased demand for coal, the risk of
a persistent interruption of supply is minimal, further restructuring and closures in the
Community coal sector are inevitable.

further

€

€

55. Table 18 presents figures on aid to coal mining not related with current production and aid
that is granted for current production. The latter is expressed in euro per person employed
in the coal sector and as the share of the total aid to the sector. Overall the trend in aid
amounts to current production per person employed decreased slightly from
46.656 in
44.173 in the current reporting period. However this decrease is
the previous period to
partly due to the fact
that aid notified by France in 1997 and 1998 is still under
examination by the Commission and therefore is not included. Nevertheless it should be
noted that indigenous coal production in France is being reduced and it is expected to
cease by 2005. In Germany due to the decrease in aid to current production, absolute aid
levels continue to decrease in conformity with the 1997 “Kohlekompromiss”, whilst aid
levels per employee and in absolute terms have increased in Spain. An analysis of the
evolution of the level of State aid in France, Germany and Spain should take into account
that from 1996, all State aid must be entered in national, regional or local budgets. As a
result, statistics before 1996 should be adapted in order to make them comparable. After
halting all aid to current production during the period 1990-1994, the United Kingdom
granted a small amount of aid to current production in 1993 and a considerable amount in
1994 as a draconian restructuring of the coal industry took place prior to privatisation. In
Portugal the last colliery closed at the end of 1994.

€

2.241 million per year during the first period to

56. Aid granted for purposes other than current production also fell from a yearly average of
1.657 million during the second. The
above averages may change depending upon the Commission decision in regard to aid
granted by France in 1997 and 1998. Included in these amounts is an annual average of
€
2.3 million that was spent in France on aid to coal R&D during the period 1994-1996
€
0.6 million that was devoted to R&D and environmental

€

and, an annual average of
protection in Spain during the same period.

In the case of Spain a coal reference price system was in operation for a number of years
which kept domestic prices net of subsidies considerably above world market prices.
Although having an effect equivalent to an aid, the usual indicators that are shown in
Table 18 cannot reflect this. However, the abolition of this reference price system is one
of the explanations for the apparent recent increase in aid to Spanish production. Coal-
purchasing contracts, for example, for electricity generation, with local suppliers included
a premium above the world market price for the security and the flexibility offered.
However, there may also arguably be an aid element that is not reflected in the table.

4411

57. For coal the observed aid amounts are high. While competition is essentially with
imported coal, possible distortive impact of these aids cannot be ignored, as the
Community market becomes increasingly integrated and competitive. The declared will of
the Community to open up the energy market renders a strict aid control policy by the
Commission in this sector more and more important.

58. The Commission is fully aware that, in the absence of substantial financial assistance, the
industries of France, Germany and Spain would be forced to close almost
coal
immediately. However the Commission is also aware that, while financial assistance is
necessary to mitigate the social and regional consequences of the restructuring of the
sector, it has in general not helped to secure the medium-term prospects for the industry.
Whilst in the past, security of supply and diversity of sources have been ensured, as noted
in a recent Commission report17: “state aid given to coal production in the EU has not
been capable of providing an answer in economic terms to the structural crisis facing the
European coal industry. In practice, aid has often only provided a relatively slight
improvement in production costs in the light of coal prices on the world market. This is
largely due to the progressive deterioration in production conditions brought about by
increasingly difficult geological conditions and often the lack of structural change in the
coal-producing firms resulting from the absence of competitive pressure”.

Table 18

State aid to Coal Mining 1994 – 1996 and 1996 - 1998

Yearly average of aid not
destined to current
production*
(in million Euro)

1994-1996

1996-1998

Yearly average of aid destined to current
production*

1994 – 1996

1996 - 1998

Euro per
employee

in % of
total aid

Euro per
employee

in % of
total aid

Germany**

Spain

France***

Portugal

United Kingdom

130

245

614

2

1.250

341

337

196

<1

782

63.745

28.570

10.159

1.962

733

TOTAL

2.241

1.657

46.656

98

76

20

25

1

75

61.293

31.658

2.406

93

69

13

44.173

77

*
**

***

in 1997 prices
The 1994 figures for aid to current production for Germany include an exceptional financial measure of
DM 5 350 million to clear the debts of the compensation fund as they stood at the end of 1993.
1997 and 1998 aid has been notified by the French Government but is still being examined by the
Commission.

17 Report from the Commission on the Application of the Community Rules for State Aid to the Coal Industry in

1996 and 1997. COM(1999) 303 final of 9 September 1999.

4422

PART V - AID TO THE TRANSPORT SECTOR

59. Although the Transport sector is not exempted from the general provision on state aid, the
Treaty contains special rules for this sector (Articles 73 and 76). In addition, to reinforce
the internal market and economic and social cohesion, Article 154 EC Treaty provides for
Community support, in the context of open and competitive markets, of trans-European
networks.

60. A key part of the Union’s strategy is to open up access to transport markets in taking into
account the particular characteristics of each transport mode. Community air, ship, and
road haulage operators now have complete freedom to provide services, cabotage is
already free on inland waterways and road haulage and, since January 1999, ferry
operators are enjoying steadily increasing rights. The opportunities for rail operators are
more limited, although the Commission is seeking to extend them.

61. Open and competitive markets do, however, not preclude public intervention, in particular
when it is deemed to be in the general interest or is aimed to achieve objectives of the
Common Transport policy. Because public intervention, or more particularly, State aid,
can be abused to protect enterprises from market forces and undermine the goal of better,
cheaper services that the liberalisation of transport markets is meant to promote, a strict
control of such aid is called for. It is, on the other hand, also necessary to ensure that such
control does not inadvertently frustrate the objectives of the Common Transport Policy.

62. The Commission's state aid control in the transport sector is more complex than in some
other sectors. The complexity arises from the need to take into account not only the
general state aid requirements of the Treaty, but also the Treaty articles dealing
specifically with transport aids. In doing this, the Commission takes into consideration the
degree of liberalisation achieved by the different transport modes, the growth in the
number of competitors who can be adversely affected by unfair state aid, the strategic and
economic importance of the market concerned and, last but not least, the enterprises’ need
for clarity and legal certainty.

63. To strengthen its control, in 1994 the Commission adopted strict guidelines18 on State aid
to the air transport sector that reinforce in particular the one time last time principle.
Further improvements of state aid control are being prepared. Following approval of
revised State aid guidelines in the maritime sector, the Commission is now considering
how to revise the secondary Community law relating to state aid in the land transport
sector (Regulation (EEC) 1107/70 and Regulation (EEC) 1191/90) to make these clearer
and more systematic.

The situation in each of the very different European transport modes is presented below
and a summary of the decreasing level of State aid, the bulk of which is given to railways,
that has been granted to this sector since 1994 is given in Table 20.

18 Application of articles 87 and 89 of the EC Treaty and article 61 of the EEA Agreement to State aids in the

aviation sector (Official Journal C 350 of 10.12.1994, page 5)

4433

Air transport sector

64. Previously enjoying protection,

€

this sector has gone through a process of gradual
liberalisation, achieved since April 1997, when the last restrictions on cabotage traffic
were removed. In order to adapt to this new context, many airline companies have set
major restructuring programmes. Aid, mostly ad-hoc, that was granted to the air transport
sector increased up to 1994 and then dropped back. The average yearly amount for 1994 -
1996 was
2064 million and for the latest reporting period, 1996-1998, the average is
€
1110 million as anticipated in the previous Survey. From 1999 a significant decrease is
expected due to the completion of the restructuring process that has been carried out by
most of the airline companies concerned. These figures confirm the transient nature of
support to airlines as stated in previous Surveys. Given decreases elsewhere, the level of
aid in this sector still represents only 1% of overall aid or 3% of aid to the manufacturing
sector.

Railways

65.

In 1996 the Commission adopted a white paper on a strategy for revitalising the
Community’s railways which deals also with financing of the railways and sets out, in
general terms, the approach the Commission will follow when analysing aid in this sector.
It has to be noted that the amounts railway companies receive have so far barely been
assessed under State aid principles. This fact is due to the low level of liberalisation and
the high amount of public service compensation, which is exempted from notification in
land transport. The Commission’s aim is gradually to arrive at a system where the only
public financing of railways will be in the form of financing for infrastructure or
compensation for public service obligations, or where it is part of an overall restructuring
plan aimed at restoring the financial viability of railway companies. For the other issues
increased transparency is the foremost objective. Table 19 shows aid and other
compensations to railways as a percentage of value added in this sector.

66. Aid levels have dropped in thirteen Member States with the largest decrease being seen in
Luxembourg. Note that as recent figures for value added were not always available
estimates were used, comparisons between Member States should therefore be made with
caution. In all Member States the railway sector has been confronted with far-reaching
restructuring, which to a large extent changed also the financing methods. The
in
Commission has a positive attitude towards public and private investments
infrastructure in order to develop the trans-European transport network. To this end, the
Commission approved public support measures related to the realisation of the Paris-
Brussels-Cologne-Amsterdam-London high-speed rail
the 14 projects
recognised as having priority in the development of the trans-European networks.

line, one of

4444

Table 19

State aid to Railways in per cent of gross value added in inland transport services* 1994–
1996, 1996–1998

per cent

1994 – 1996

1996 - 1998

total aid

of which
Regulation
1191/69

total aid

of which
Regulation
1191/69

Austria

Belgium

Denmark

Germany

Greece

Spain

Finland

France

Ireland

Italy**

Luxembourg***

Netherlands

Portugal

Sweden

United Kingdom

EUR 15

14,1

37,4

10,5

48,1

16,3

19,1

1,4

25,7

19,8

21,3

28,3

20,2

5,6

30,2

9,2

23,5

-

8,0

0

16

0

2,8

0

5,7

10,3

3,1

25,5

4,8

3,8

0

7,9

7,1

13,6

38,6

7,8

39,1

16,1

16,3

1,2

24,6

19

17,7

4,4

13,6

3,4

24,4

9,7

20,8

13,4

7,6

1,0

15,8

0

3

0,8

5,4

10,8

2,2

4,3

1,9

3,2

0,5

9,6

6,9

*Aid figures expressed as a percentage of value added in inland transport services as no separate

figures are available for railways.

**Figures from Italy have not been received for 1998 and 1997 figures were estimated to equal

those of 1996.

*** A considerable part of the expenditure in this Member State is for pensions.

4455

Maritime transport

€

67. Total annual aid authorised by the Commission under the previous guidelines and during
the period under review was
1428 million. From time to time over the period under
examination the Commission has been confronted with untypical large-scale cases which
have resulted in a significant increase in the total aid figure for the year in question. One
example of such a case is the French rescue and restructuring aid for the company CGM
€
(
514 million) in 1995. Nevertheless total average aid authorised per year has recently
dropped and is around

200 million.

€

68.

In mid-1997 a new State aid discipline was introduced for maritime transport19. These
guidelines continue to recognise, as did those of 1989, that EU shipping policy operates in
a global arena characterised by competition from low cost flags of convenience and fiscal
jurisdictions. However, the new guidelines establish a more restrictive line on aid that
interferes with normal business decision making in shipping companies, in particular with
regard to investment in vessels. Another key element relates to State financing of losses
attributable to the fulfilment of public service obligations especially on thinly served
routes. Here the Commission seeks to ensure fair access of all EU shipping companies to
such State assisted business in accordance, in particular, with the terms of the Council
Regulation 3577/92 on maritime cabotage rights. In the field of seaports, the Commission
continues to treat public financing to port undertakings under Articles 87-89 of the Treaty.

Inland waterways

69. Most aid is aimed at the restructuring of the inland waterways sector in the context of its
progressive liberalisation starting in the year 2000. Thus it supports measures that
(reduction of
accompany the process of structural
technical
overcapacity by a Community wide co-ordinated scrapping of vessels,
modernisation of the fleet, encouragement of trade associations, vocational training,
support for retirement, promotion of waterways etc.)

reorganisation of

this sector

Moreover during the period 1996-1999, the inland waterways sector can exploit a
regulation (Council Regulation 2255/96) that allows under certain conditions, aid if it
concerns investment in infrastructure of inland waterway terminals or in fixed or mobile
equipment for transshipment from and to waterways. To this end the Commission
approved for example an aid for a firm in Luxembourg for the acquisition of two cranes
for the handling of containers for inland water transport.

Concentrated in six Member States, (Austria, Belgium, France, Germany, the Netherlands
30 million per year
and Luxembourg, aid in this sector is extremely low averaging some
during the period 1996-1998.

€

Combined Transport

70. Art. 3(1)(e) of Regulation 1107/70, allowed, until 31 December 1997, State aid for
combined transport equipment and infrastructures. Council Regulation (EC) 543/97
exempted the Member States, from 1 January 1996 to 31 December 1997, from notifying

19 Community Guidelines on State aid to the maritime transport (Official journal C 205 of 5.7.1997, page 5)

4466

State aid to this sector. Since 1 January 1998, the general State aid rules of the Treaty
apply for aid to combined transport. This applies both to the notification obligation and
the substantive assessment of aid.
During the survey period, notifications were received from Austria, the Netherlands, the
UK and Italy, relating to aid for combined transport and transshipment equipment and to
aid for construction of terminals. The amounts given were relatively small. However, the
actual amount given for combined transport may be larger, as the notification obligation
did not apply for a part of the survey period.
Further, some Member States give aid to promote combined transport under Regulation
1191/69. For instance, it is estimated that Austria paid the Austrian Railways ÖBB from
1994 to 1998 ca. 80 million ECU/year for its services rendered in the field of combined
transport. Other Member States considered, in the survey period, that State grants for the
construction of privately operated combined transport terminals were public measures in
the field of publicly accessible infrastructure funding and thus no aid, which had to be
notified. For example, Germany provided a budget, as of 1998, amounting to 20 million
ECU in that year, for the construction of privately owned and run combined transport
terminals.

Road Transport

71. Since 1993 when the opening up of the road transport market began, the Commission
increased its monitoring of aid that could unfairly benefit particular operators.
Competition in this sector has noticeably increased and the strict line followed by the
Commission has found expression in a number of negative or partially negative decisions,
where the Commission strictly applied the principle that operating aid is in general
incompatible with the Treaty. By way of example, the Commission adopted a negative
decision concerning two schemes introducing tax credits for professional road hauliers.
Aid expenditure, as indeed the overall number of cases, remains comparatively low and
no particular trends can be identified from the data at hand.

Table 20
State aid to the Transport Sector
Annual values 1994 to 1998

1994

1995

1996

1997

1998

Million euro

Railways

34.395

34.784

32.682

30.195

30.289

of which regulation 1191/69

8.745

10.660

10.302

10.761

11.631

Airline Services

Inland Waterways

Maritime Transport

Road/Combined Transport

2425

2371

1395

1635

295

6

414

23

414

45

300

-

28

300

17

0

4477

PART VI - AID TO THE FINANCIAL SERVICES SECTOR

72. Amounts of aid granted to the financial services sector are relatively small when
compared with overall aid figures, although a constant increasing trend has been observed
since 1994. Aid was granted to the financial services sector in France and to a lesser
extent in Germany, Ireland, Italy and Portugal. Its level has risen from an annual average
of
3283 million during the current reporting period.
Detailed figures for these five countries are provided in Annex A5 and A6.

1959 million in 1994-1996 to

€

€

With the exception of Germany, Ireland and Portugal, this aid is almost entirely destined
for major restructuring and is contingent upon, inter alia, reductions in the market shares
of the companies’ concerned. Moreover the restructuring of the companies concerned is
often a precursor to their subsequent privatisation.

Given that the bulk of the ad-hoc aid granted in this sector only benefits a small number
of companies, government support to this sector must be kept under constant watch and
all current restructuring operations will continue to be closely monitored. This is
particularly important in the banking sector where capital injections or equivalent forms
of aid have a direct impact on the beneficiaries’ operations and may distort competition
far beyond what would be expected if only the nominal value of the aid were taken into
consideration.

4488

PART VII - AID TO TOURISM, MEDIA AND CULTURE

73. Member States provide support to the tourism, media and culture sectors by way of multi-
sectorial SME and regional aid schemes and specific programmes that are targeted
exclusively to one of these sectors. The Commission has generally approved these
specific programmes either under the SME or regional guidelines. Although representing
only a very small fraction of total aid - and not considering the total support given to these
sectors by way of multi-sectorial SME and regional aid programmes -, information on the
aid levels of such specific programmes and the development of Member States’ spending
patterns in this field is given below in Table 21.

74.

Italy maintains a large number of specific programmes that support tourism and account
for about 40% of the total expenditure in this sector. Five other Member States each
maintain specific programmes that account for 10-15% of this total.

75. Some Member States also maintain specific programmes that provide support either to the
media or to culture, all of which have also been approved either under the SME or
regional frameworks or under general State aid rules. The relatively high figures for
France are due to support given to culture, whereas the UK data reflect aid given for
television.

4499

Table 21

State Aid granted to the tourism, media and culture by way of specific programmes during the
periods 1994 – 1996 and 1996 – 1998.

Million euro

Tourism

Media and Culture

1994 – 1996

1996 - 1998

1994 – 1996

1996 - 1998

Austria

Belgium

Denmark

Germany

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden

Unit. Kingdom

EUR 15

33

7

10

36

0

33

0

0

1

139

0

0

46

0

10

316

0

7

15

7

<1

22

4

160

3

103

0

22

19

74

201

636

0

4

13

6

<1

22

12

231

4

96

1

22

12

86

236

748

32

8

9

26

<1

33

0

0

1

73

0

0

37

0

11

229

5500

PART VIII - AID FOR EMPLOYMENT and TRAINING

76.

Incentive schemes exist in all Member States to stimulate or facilitate employment and
training. In so far as such schemes are generally available and therefore are not specific to
any one sector, and in fact genuinely constitute part of a general system of employment
measures, they are not considered as State aid. In contrast, schemes that are not generally
available are more likely to be considered by the Commission as containing elements of
State aid. In order to clarify the distinction between measures involving State aid and
general measures, the Commission adopted guidelines on employment and a framework
on training aid in 199520 and 199821 respectively. State aid measures for employment
notified since 1995 have therefore been assessed on the basis of the former and, from the
year 2000 onwards, State aid for training is assessed on the basis of the latter framework.

Data pertaining to employment and training schemes that contain State aid are presented
in Table 22 below. It has to be pointed out that the figures for the period 1994-1996 are
incomplete for several countries and are, therefore, indicative only. In future Surveys this
situation will improve.

The figures in Table 22 provide a first indication of the great diversity in using state aid as
an instrument to support employment and to increase training. Whilst two Member States
do not award state aid for these objectives at all, two of the other Member States are only
supporting training and four are only supporting employment. Of course, it can be taken
for granted that all Member States foster employment through general labour market
measures and training through general measures.

20 Guidelines on aid to employment (Official Journal C 334 of 12.12.1995)
21 Framework on training aid (Official Journal C 343 of 11.11.1998)

5511

Table 22

State Aid granted to support employment and training
during the periods 1994–1996 and 1996–1998

Employment

Training

Million euro

1994 – 1996

1996 – 1998

1994 – 1996

1996 - 1998

Austria

Belgium

Denmark

Germany

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden

United Kingdom

24

85

138

1

0

147

66

44

0

229

0

1

106

263

0

18

97

75

50

0

111

51

22

0

846

0

1

85

61

0

EUR 15

1.104

1.416

0

9

28

1

0

63

0

70

15

0

0

0

89

70

499

844

0

9

93

31

0

43

0

15

14

0

0

0

74

35

585

900

5522

PART IX - OVERALL VOLUME OF NATIONAL AID IN THE
COMMUNITY

77. The overall volume of National State aid granted in the EU to the sectors covered by this
Survey is presented in Table 23 and amounts to an annual average of 93 billion euro
during the period under review. In comparison with the 104 billion euro spent in the
previous period, this is a perceptible decline in the overall levels of State aid. If this
overall figure is broken down, the corresponding figures for each sector - with the
exception of financial and other services, Media and Culture – are equally decreasing.
For employment and training, a reliable comparison cannot yet be made for the reasons
given under point 76 above.

Table 23

Overall average annual national aid in the Community 1994-1996 and 1996-1998

Million euro

1994–1996

1996–1998

Overall national aid

104.215

93.127

Of which:
- Manufacturing sector
- Agriculture
- Fisheries
- Coal mining
- Transport
- Financial Services
- Tourism
- Media and Culture
- Employment
- Training
- Other Services

38.531
14.515
294
9.079
36.666
1.959
316
636
1.104
844
272

32.639
13.339
*260
**7.227
*32.193
3.283
229
748
1.416
900
892

* 1998 total partially estimated
** 1997 and 1998 data for French coal mining are not included

78. Table 24 shows Member States’ total aid expenditure as a percentage of gross domestic

product, per person employed, and relative to total government expenditure.

5533

Table 24

Overall national aid** in the Member States 1994-1996 and 1996-1998 in per cent of GDP,
per person employed and relative to government expenditure.

In per cent of GDP*

In euro per person
employed

In per cent of total
Government
Expenditure

1994 - 1996 1996 - 1998 1994 - 1996 1996 - 1998 1994 - 1996 1996 - 1998

Austria

Belgium

Denmark

Germany

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden

United Kingdom

EUR 15

* in 1997 prices
** not including Agriculture

0,65

1,26

0,99

1,97

1,36

1,14

0,50

1,11

0,88

1,83

0,99

0,65

1,37

0,99

0,54

1,32

0,65

1,18

0,94

1,45

1,24

0,98

0,47

1,13

0,99

1,57

0,53

0,62

1,63

0,78

0,52

1,12

342

698

526

1.007

352

367

249

588

389

809

624

362

260

476

227

591

353

677

513

786

334

318

248

618

497

712

343

349

323

388

223

526

1,17

2,33

1,60

3,96

2,38

2,47

0,85

2,02

2,12

3,38

2,24

1,23

2,98

1,49

1,17

2,54

1,23

2,26

1,59

2,95

2,25

2,22

0,85

2,08

2,66

3,04

1,27

1,24

3,44

1,24

1,20

2,35

In spite of the convergence, which is stronger in terms of aid as a percentage of GDP and
euro per person employed than in per cent of total government expenditure, disparities
between Member States in the grant of State aid in each main sector are reflected here. In
terms of all three indicators, the difference between the lowest and highest figure is a
factor of three.

5544

79. Table 25 shows a breakdown of overall national aid into the main sectors covered by the
Survey22. Between the two periods covered by the Survey, the share of aid granted in each
sector has remained fairly constant at the EU level. On the national level shares are less
stable. In particular a high level of regional aid to services other than tourism, media and
culture in Portugal explains this Member State’s overall aid increase, as shown in Table
24, whilst the trends in the other sectors in this country, in particular manufacturing, are
decreasing.

Table 25

Overall State Aid in the Member States 1994 - 1996 and 1996 – 1998
broken down into main sectors.

Overall State Aid in the Member States

Manufacturing

Financial
Services

Coal

Transport

Tourism, Media
and Culture and
other services**

Employment
and Training

per cent

1994 -
1996

1996 -
1998

1994 -
1996

1996 -
1998

1994 -
1996

1996 –
1998

1994 -
1996

1996 -
1998

1994 -
1996

1996 -
1998

1994 -
1996

1996 -
1998

AU
B
D
DK
E
F
FIN
GR
IT
IRE
L
NL
P
S
UK

EU

19
33
43
39
30
32
15
39
56
36
28
24
19
15
19

39

22
26
40
47
31
28
19
43
51
51
43
24
11
19
19

35

<1

<1

16

18

17
5

19
1

16

2
12

5

0

0

17

9

10

8

2

4

26
54
33
34
31
45
2
51
30
28
53
52
24
54
34

35

28
60
34
28
27
39
2
47
31
17
27
51
10
56
37

35

1
<1
<1
2
1
1
<1
0
1
1

1
23
3
3

1

1
<1
<1
1
1
1
1
0
1
1
1
1
54
5
3

2

1
3

11
3
1
3

1
2

13
15
7

2

1
4
<1
11
3
<1
3

5
2

<1
9
5
8

3

* Agriculture and Fisheries account for a further 14% during each reporting period.
** For Portugal only: the amounts shown in this column also include services other than tourism,
media and culture that are supported by regional aid amounting to 21% and 53% of total
Portuguese State aid during the two reporting periods respectively.

22

For Portugal the amounts shown under Tourism, Media and Culture also include other services supported by
regional aid.

5555

Aidperheadofpopulation

80. Table 26 shows, in terms of both overall national aid and aid to the manufacturing sector,

the aid per capita in the European Union.

of which: Aid to
Manufacturing

€

Table 26

State Aid per capita in the European Union
Annual averages during the period 1996-1998

Overall amounts of state aid*

€

in

million

€

per capita

€

in

Austria

Belgium

Denmark

Germany

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden
United
Kingdom

1.186

2.532

1.356

26.808

1.306

4.709

500

13.887

688

15.853

78

1.963

1.471

1.570

5.881

147

249

257

327

125

120

97

237

188

276

188

126

148

178

100

million

495

732

712

11.463

616

1.800

391

4.481

416

8.864

48

629

195

344

1.454

per capita

Population
in Millions

61

72

135

140

59

46

76

77

114

154

114

40

20

39

25

8,07

10,17

5,27

81,96

10,49

39,30

5,13

58,49

3,66

57,45

0,42

15,57

9,94

8,84

58,90

EUR 15

79.787

214

32.639

87

373,66

1997 prices

* Not including Agriculture

5566

81. As in the above Tables 24 and 25, Table 26 reflects the continued disparities between
Member States. In terms of euro per capita there is a threefold difference between the UK
and Germany in the grant of overall State aid. When aid to manufacturing is considered,
there is a seven-fold difference between the Portugal and Italy.

5577

RESULTS

82. The aid awarded to the manufacturing sector in the European Union during the period
under review 1996-1998 amounts to an annual average of some 33 billion euro. Compared
with the average 38 billion euro of aid awarded annually during the previous period 1994-
1996, this represents a decrease of 15%. However it is important to underline that once
again the overall drop in the volume of aid is almost exclusively the result of the decreases in
the aid levels in Germany and Italy of almost 5 billion euro and 2 billion euro respectively.
Smaller decreases were also seen in Belgium, Spain and Portugal.

83. Large disparities remain between Member States in their award of aid. The spread is sizeable
when aid to the manufacturing sector is expressed in per cent of value added: the 4.9% aid
level observed in Greece is seven times the lowest aid level, 0.7% observed in the UK. The
Member States with the lowest levels of aid for manufacturing are the United Kingdom,
Sweden and Portugal which all enjoy levels that are well below the EU average.

84. When disparities between the Member States are considered in regard to cohesion, it
appears that the share of aid in the four cohesion countries – Greece, Ireland, Portugal and
Spain – has increased from 7.8 % of total aid to the manufacturing sector during the
previous period to approximately 9.3% in 1996-1998. By way of comparison, the share of
the four big economies – Germany, Italy, France and the UK – in manufacturing aid has
decreased from 84 to 80 percent. (Germany accounts for 35%, Italy for 27%, France for
14% and the UK for 4% of the total.) Although still at a very high level, the relative
importance of these countries has diminished to the advantage of the cohesion countries.

85.

In so far as the objectives pursued are concerned, the largest share of manufacturing aid in
the Union, 57%, is spent on regional objectives most of which is targeted to the least
developed regions, i.e. areas qualifying for regional aid under Article 87(3)a of the EC
Treaty. This share drops to 52% when the exceptional aid granted by THA and its successors
to the new German Länder is not accounted for. Aid granted for horizontal objectives, inter
alia for the promotion of research and development, for environmental protection as well as
for small and medium-sized enterprises, accounts for 35%. The share of sectorial aid in
overall manufacturing aid has dropped to 8%.

86. As to the form by which the aid is given, at Community level, budgetary expenditure is the
preferred form to award State aid and its share in manufacturing aid is around 73%. In
comparison with tax foregone, the preference for the former, more transparent form of state
intervention is, however, unequally distributed amongst the Member States. Whereas in
some countries practically all of the aid, more than 90%, is given in the form of budgetary
expenditure, in other countries, such as Denmark, France and Italy over 30% of all aid to
manufacturing is given in the form of tax breaks.

87. As witnessed in the previous surveys a relatively large but continually decreasing volume of
aid falling outside schemes promoting horizontal, sectorial or regional objectives is granted
on an ad hoc basis to individual enterprises. In the manufacturing, financial services and air
transport sectors, a limited number of large individual aids account for a disproportionate
part of total aid granted. Ad hoc aid which is granted mainly for rescue and restructuring of
companies is most prone to distort competition. In the manufacturing sector it increased in
volume from 6% of total aid to this sectors in 1992 to 12% in 1993 before dropping back
to 4% in 1998. If aid granted to the new German Länder via the Treuhandanstalt/BvS is

5588

added - such aid can be considered similar to ad hoc aid – the share in overall aid to
manufacturing increased from 19% in 1992, to 37% in 1994 and has subsequently fallen
back to 12% in 1998.

88. Overall national aid in all sectors covered by the Survey in the EU has continued on its
downward path dropping from an annual average of
104 billion during 1994-1996, to
€
93 billion during 1996-1998. Aid has, with the exception of financial and other services,
media and culture, decreased across the board. A full series of data from 1994-1998 is not
available for employment and training, therefore a comparison between the two periods
cannot be made. However between 1996 and 1998 aid for these objectives accounted for
about 2.5% of total aid.

€

€

€

8 billion and

89. Although the overall level of State aid has decreased in each Member State with the
exception of France, Ireland and Portugal, large disparities in aid volumes continue to
exist between Member States. The two Member States that have contributed most to the
€
11 billion decrease are, as in previous periods, Germany and Italy with reductions of
over
2 billion respectively. However it is not only the volume but also the
composition of State aid that influences its impact on competition in the internal market.
In the period 1996-1998 sector specific aid is still relatively high in Belgium (railways),
Germany (coal and railways but declining in absolute terms), Greece (railways and
airlines, where a large reduction is now seen), Spain (railways, coal and shipbuilding) and
France (railways and financial services). In Portugal non-manufacturing regional aid
accounts for about one half of all national aid.

5599

CONCLUSIONS

90. The successful launch of the euro strongly reinforced the Single Market. However in
order to ensure lasting success of EMU, a continued budget discipline is an indispensable
requirement for virtually all Member States. This is required to provide the conditions for
a strong and durable expansion of investment, output and employment. During the period
covered by this Survey, the need to remain within the convergence criteria and comply
with the Stability and Growth Pact has provided the necessary focus for the budgetary
discipline of Member States. Whilst the declining amounts of State aid in most Member
States presented in this Survey are certainly also a reflection of this discipline, the levels
of aid reported are still high and represent a significant margin for manoeuvre in regard to
further efforts to improve the efficiency of public finance. The continued rigorous
enforcement of the Community State aid rules will support this consolidation process.

91. Furthermore, so as to reap the benefits of the internal market under a common currency,
the European industry is already engaged in substantial efforts to reorganise its production
and distribution activities at the European level. State aid control has a pivotal role to play
in facilitating this structural change in the European economy by helping to remove
publicly induced obstacles for industrial restructuring. It thus contributes to the long-term
improvement in the competitiveness of European businesses and in so doing paves the
way for the creation of viable jobs.

92. When controlling State aid, the Commission, of course, approves aid for many purposes
where these are considered to be in the common interest. Examples of such aid for which the
Commission clearly has a favourable view include research and development, SME’s,
environmental protection, training, employment and regional aid. However the continuing
high levels of aid provide strong reasons for the Commission to maintain its pressure on state
aid in the Community and particularly in the manufacturing sector. Therefore not only does
the level of State aid need to be firmly kept under control, but before aid is provided, it is
incumbent upon Member States to establish whether this instrument is indeed the most
appropriate.

93. The Commission, in its report of 26 January 2000 on economic reform, stressed the
importance of maintaining the current overall downward trend in the volume of State aids.
It also recommended that Member States make additional efforts to avoid sector specific
and especially ad hoc aids. In its conclusions on the Cardiff economic reform process of
16 March 2000, the Internal Market Council called for strategies to be developed for an
overall reduction in State aids in the Member States and the Community as a whole, with
a focus on monitoring their level and evaluation their economic effects, notably through
statistical data. Aid should be oriented towards horizontal goals and should only be
granted where it can be justified on primary economic grounds and provides a clear
welfare gain in the common interest, for purposes such as regional development,
environmental protection, R&D and innovation. The Council encouraged the Commission
to pursue vigorous action against those State aids likely to distort competition. The Lisbon
European Council of March 2000 called on the Member States and the Commission to
further their efforts to promote competition and reduce the general level of State aids,
shifting the emphasis from supporting individual companies or sectors towards tackling
horizontal objectives of Community interest, such as employment, regional development,
environment and training or research.

6600

94. The ongoing refinement of state aid control finds expression in a number of ways. New
Community guidelines and frameworks are being drawn up not only to address
developing market needs, but also to fine-tune existing Community State aid control rules.
In the coming months a new environmental protection framework will be published and
the employment guidelines will be revised. A revision of the current R&D guidelines will
take place at the beginning of next year. Venture capital markets provide an important
boost to the development of companies and employment. The Commission is therefore
examining the role of State aid and the conditions under which it may be granted in this
area. Work will also be continued on identifying harmful tax measures in the form of
State aid.

95. Aid granted in the area of SMEs and training and responding to strict criteria currently
being drawn up by the Commission will be exempted from notification requirements.
Such group exemptions should ensure a reduced level of administrative effort on the part
of Member States and the Commission prior to implementation of aid targeted towards
these objectives thereby allowing a greater focus on monitoring the effectiveness of such
aid. Moreover resources should be released in order to deal with more complex areas of
State aid control.

96.

In July 2002 the ECSC Treaty will expire and with it the State aid rules that currently
regulate the grant of State aid to ECSC coal and steel products. As reported in the Survey
the level of State aid granted in these two areas has dropped, particularly in the case of
ECSC steel products. Based not least on this tendency but also other considerations, a
decision will have to be taken in the near future as to what rules will apply to these sectors
once they are subject to State aid control under the EC Treaty.

97. The Commission will also continue to monitor developments in newly liberalised sectors
so that the long-term competitive advantages gained from liberalisation will not be lost by
the grant of subsidies to prop up loss-making activities. In the energy sector particular
attention is being paid to costs borne by electricity producers under the regulated
conditions that cannot now be recovered in the liberalised market, i.e. so called stranded
costs.

98. A key aspect of a European State aid control policy that impacts so strongly upon the
single market and therefore must be subject to scrutiny is increased transparency. In this
respect during the coming months the Commission will be laying the foundations for a
State aid register and Scoreboard. Both instruments should facilitate greater openness by
providing interested parties with more detailed and consolidated information on various
aspects of State aid control policy and the implementation of Commission State aid
decisions in Member States.

99. An essential accompanying measure to transparency is the need for continued
improvement in the data that is collected by the Commission on National State aid
expenditure. Member States have pursued with their efforts to take steps to improve the
quality and reliability of information forwarded to the Commission, nevertheless further
improvements are necessary.

100. Results from this Survey show that

the level of aid granted by Member States to
restructure their manufacturing industries and airline services is now decreasing. In the

6611

next two to three years the same trend should be seen as regards restructuring of financial
services. However the continued award of relatively high amounts of ad-hoc aid in some
Member States reinforces the importance of the new Commission Guidelines on aid for
rescue and restructuring. Even aid intended to restore the viability of companies or to
attenuate the social consequences of the adjustment process in certain sectors can impose
a heavy cost
in terms of forgone opportunities to use resources efficiently. The
Commission will therefore maintain its position that rescue and restructuring aid cannot
be allowed as a pretext to protect troubled industries or ailing companies.

101. In regard to cohesion within the European Union, the findings of the Survey indicate that
the gap between the level of State aid granted in the richest Member States and in the four
cohesion countries continues to diminish slowly. With a view to correcting regional
disparities financial assistance is vital and its effectiveness must not be compromised by
the grant of disproportionate National State aid elsewhere. The Commission will, in so far
as is possible under current State aid control rules, continue to reduce the cohesion gap.

102. The process of enlargement has continued apace. This process was recently modified with
all candidate countries being brought into a single negotiation process. The establishment
in these countries of a competitive environment similar to that of the Community has
therefore become urgent. In view of their future aspirations, compliance with the State aid
“community acquis” well in advance of accession proper is essential in meeting the
accession criteria in the competition area, as established in 1993 at the Copenhagen
to follow closely the
European Council. The Commission therefore continues
developments in State aid in these countries and by way of the Survey, provides an
effective benchmark, on the basis of which the necessary degree of comparability and
transparency can be achieved.

103. Headway is also being made to fully implement the various provisions of Co-operation
Agreements that were signed with Russia, the Newly Independent States and other
countries. To guarantee free and fair competitive conditions throughout this nascent free
trade area, State aid provisions were brought in to the heart of all these agreements.
Inspired by the Union’s model, their implementation poses a challenge of paramount
importance and the Commission’s priority task is to continue providing assistance to these
countries in order that they create a credible State aid control system. Only in this way
will competitive conditions similar to that of the Community be established in these
countries.

6622

ANNEXES

6633

ANNEX I

TECHNICALANNEX

The purpose of this annex is to provide background information on the methodologies and
sources of data that were used in order to produce this Survey on State aid, notably with regard
to:

I.

Scope of the study
Fields excluded

II.

Categories, forms and objectives of aid

III.

Type of data, sources and methods of assessing the aid element

IV.

Specific issues

-
-

Research and Development (R&D)
Accession of the three new Member States

6644

I. Scope of the Study
Fields excluded

1.

This Technical Annex explains the methodological background and the statistical
techniques used. It updates the technical annex in the preceding Survey.

The Survey focuses on State aid to enterprises falling within the scope of Articles
87 and 88 EC Treaty and Article 95 ECSC Treaty. Accordingly, general measures
(which, if they distort competition, would be dealt with under Article 96 of the EC
Treaty) are not included in the figures.

2.

2.1.

The following measures or areas are not dealt with:

Aid whose recipients are not enterprises

-
-
-
-
-
-

Aid to households
Aid to the handicapped
Aid for infrastructure
Aid for educational institutes, hospitals, public housing
Aid for public vocational training centres
Aid given directly to developing countries

2.2.

General measures and other measures

-

-
-

-

Differences between the various tax systems and general social security
systems in Member States (depreciation, social security deficit, etc.)
Quotas, public procurement, market restrictions, technical standards
Tax schemes that account for the specific nature of some economic activities
(co-operatives, owner enterprises, self-employed, etc.)23
General reduction in VAT (for example, foodstuffs in the United Kingdom)

2.3.

Aid granted by supranational and multinational organisations

-
-
-

Community funds (ERDF, EAGGF, etc.)
Financing by EIB and EBRD
Support to the European Space Agency

2.4.

Individual types of aid

-
-

Defence (see point 11.1 of this annex)
Public works

23

However, a lower-than-the-standard rate of corporation tax for small businesses constitutes an aid and has
been included (e.g. Germany).

6655

II. Categories, forms and objectives of aid

3.

Categories of aid

All aid represents a cost or a loss of revenue to the public authorities and a benefit to
recipients. However, the "aid element", i.e. the ultimate financial benefit contained
in the nominal amount transferred depends to a large extent on the form in which
the aid is provided. Aid should therefore be subdivided in accordance with the form
in which it is provided. Four categories have been identified for this purpose. Each
category is represented by the letter A, B, C, or D, followed either by the number 1
or 2, meaning respectively budgetary aid (i.e. aid provided through the central
government budget) or tax relief (i.e. aid granted via the tax system), plus an A if
the aid element is known; for example, C1A refers to the aid element (A) of a soft
loan (C1).

4.

4.1.

Group A (A1+A2)

The first category (A) comprises aid that is transferred in full to the recipient. In
other words, the aid element is equal to the capital value of the aid. This first
category has been subdivided into two groups depending on whether the aid was
granted through the budget (A1) or through the tax or social security system (A2).

4.2.

List of aid instruments coming under categories A1 and A2

-
-
-

-

-
-

Grants
Interest subsidies received directly by the recipient
Tax credits and other tax measures, where the benefit is not dependent on
having a tax liability (i.e. if the tax credit exceeds the tax due, the excess
amount is repaid)
Tax allowances, exemptions, and rate relieves where the benefit is dependent
on having a tax liability
Reduction in social security contributions
Grant equivalents e.g. sale or rental of public land or property at prices below
market value

5.

5.1.

Group B1

It is necessary to determine whether a financial transfer by the public authorities in
the form of equity participation is an aid to the recipient or a matter of the public
sector engaging in a commercial activity and operating like a private investor under
normal market conditions. Consequently, although equity participation,
in their
various forms, could have been included in the first category, they have been
grouped together under a separate category (B1).

5.2.

List of aid instruments coming under category B1

6666

-

Equity participation in whatever form (including debt conversion)

6.

6.1.

Group C (C1+C2)

The third category (C) covers transfers in which the aid element is the interest saved
by the recipient during the period for which the capital transferred is at his disposal.
The financial transfer takes the form of a soft loan (C1) or tax deferral (C2). The aid
elements (C1A/C2A) in this category are much lower than the capital values of the
transfers.

6.2.

List of aid instruments coming under categories C1 or C2

-

-
-
-

Soft loans whether from public or private sources. (Interest rate subsidies are
categorised under A1)
Participatory loans from public or private sources
Advances repayable in the event of success
Deferred tax provisions (reserves, free or accelerated depreciation, etc.)

7.

7.1.

Group D1

The last category (D1) covers guarantees, expressed in nominal amounts
guaranteed. The aid elements (D1A) are normally much lower than the nominal
amounts, since they correspond to the benefit which the recipient receives free of
charge or at lower than market rate if a premium is paid to cover the risk. However,
if losses are incurred under the guarantee scheme,
loss, net of any
premiums paid, is included under D1A, since it can be considered as a definitive
transfer to the recipient. The nominal amounts of these guarantees are shown under
D1 to give an indication of the contingent liability.

the total

7.2.

List of aid instruments coming under category D1

-
-

Amounts covered under guarantee schemes (D1)
Losses arising from guarantee schemes, net of premiums paid (D1A)

6677

8.

Objectives of aid

The aid schemes have been broken down into 21 headings according to their
sectorial or functional objectives. Employment and training aid have been included
for the first time:

1.

- Agriculture and Fisheries

1.1.

- Agriculture

1.2.

- Fisheries

2.

- Manufacturing/Services

2.1.

- Horizontal objectives

- Research and Development
- Environment
- Small and Medium Enterprises
- Trade
- Energy saving
- Employment Aid
- Training Aid
- Other objectives

2.2.

-Particular sectors

- Steel
- Shipbuilding
-Transport (Rail, Airlines, Inland Waterways and Maritime)
- Coal (Current Production)
- Coal (Other Aid)
- Other Manufacturing Sectors
- Media, Culture and other Services
- Tourism
- Financial services

3.

-Regional aid

3.1.

- Regions under 87(3)a

3.2.

- Regions under 87(3)c

6688

9.

List of regions within the meaning of Article 87(3)(a) valid until 31/12/199924

Member State

Regions

Greece
Ireland
Portugal

Austria

Germany

Spain

France

Italy

all regions
all regions
all regions

Burgenland

Berlin (Eastern Part)
Brandenburg
Mecklenburg-Vorpommern
Sachsen
Sachsen-Anhalt
Thüringen

Galicia
Asturias
Cantabria
Castilla-Leon
Castilla-La Mancha
Extremadura
Comunidad Valenciana
Andalucia
Murcia
Ceuta y Melilla
Canarias

Guadeloupe
Martinique
Guyane
Reunion

Campania
Sicilia
Sardegna
Puglia
Basilicata
Calabria

United Kingdom

Northern Ireland

24

OJ EC no. C 212 of 12.08.1988, pages 2 to 10 and subsequent changes.

6699

III. Sources of data and methods of
assessing the aid element

10.

As a general rule, the figures have been expressed in terms of actual expenditure (or
actual revenue foregone in the case of tax expenditure).25 Where this was not
possible, budget appropriations or the amounts that were provided for in planning
programmes were used after consultation with the Member States concerned. Where
figures were not available figures from previous years have, unless otherwise stated,
been used as estimates.

10.1.

All the figures have been compiled in current national currency and have been
converted into constant 1997 euro.

The following statistical data used in the Survey have been obtained from
EUROSTAT (New Cronos database).

-
-
-
-

-
-
-

gross domestic product (GDP) at market price
implicit deflator of GDP
general government total expenditure
gross value added at market price for manufactured products, agriculture and
transport
value added at factor cost for shipbuilding
occupied population, total employment
employment by branch for manufactured products and coal

The gross value added for fisheries has been calculated on the basis of the quantities
landed and average prices.
A small number of statistics that were unavailable have been completed with
statistics from the AMECO database managed by the Commission’s Directorate
General for Economic and Financial Affairs, DG ECFIN.

10.2.

The Commission's departments have provided figures for their respective sectors in
accordance with the following.

For agriculture, in order to meet the current reporting obligations for both the
OECD and WTO, data on all support granted at both national and sub-national
levels have to be provided to the Commission by Member States. Data comprise
direct payments, reduction of input costs and general services as well as transfers
that support of the multifunctional nature of agriculture. Assistance towards the
in rural areas, agro-environmental
creation and preservation of employment
programmes leading to the balanced use of land, the conservation and renewal of
natural resources, are also included as well as certain social security programmes
and exceptional payments resulting from the BSE crisis.

For fisheries data were submitted in accordance with the procedure emanating from
the resolution of the Representatives of the Governments of the Member States,

25

It has to be stressed that the yearly expenditures (commitments) are not necessarily identical to the yearly
budgetary appropriations for an aid scheme.

7700

during the 306th Session of the Council on the 2 October 1974. At the time of
writing 1998 data were available from Belgium, Denmark, Germany, Greece, Spain,
Finland, Netherlands, Portugal and the U.K.

For coal the figures are those submitted by the Member States in accordance with
Commission Decision Nos. 528/76/ECSC, 2064/86/ECSC and 3632/93/ECSC and
summarised in the Commission's Annual Communication to the Council on aids in
this sector. These figures are broken down into aid for current production and those
not relating to current production (i.e. special social security measures for miners
and aid to cover inherited liabilities).

For rail transport the figures are those submitted by the Member States. For the vast
majority, the amounts are not subject to prior notification. In addition, but shown
separately, are the aids given for railways within the framework of Council
Regulation 1191/69 as amended by Regulation 1893/91 for the maintenance of
public service obligations.

10.3.

Manufacturing
In the case of aid to the manufacturing sector, the figures have almost exclusively
all been submitted by Member States according to the standardised annual reporting
procedure. This procedure was set out in the Commission letter of 22.02.1994 to the
Member States and up-dated by the Commission letter of 02.08.1995 to the Member
States. Data are also checked against Commission Decisions, national publications
on the award of aid, national accounts, draft budgets and other available sources.

10.4.

Steel and Shipbuilding
The figures presented in the study have been compiled from the monitoring reports
prepared by the Commission for the Council.

7711

10.5.

Methods of assessing the aid element

10.5.1.

10.5.2.

10.5.3.

Group A – where A1A represents grants & interest rate subsidies; A2A, relief from
taxes and social charges, etc.
No calculation of the aid element is necessary, as the amount of aid is equal to the
grant or its equivalent.

Group B - equity (including debt conversion).
In line with established Commission policy, such interventions constitute aid when
a private investor operating under normal market conditions would not have
undertaken such an investment. See Commission communication “Application of
Articles 87 and 88 of the EEC Treaty and of Article 5 of Commission Directive
80/723/EEC to public undertakings in the manufacturing sector”, OJ No C 307 of
13.11.1993, p3. This method is based on calculating the benefit of the intervention
to the recipient.

Group C – where C1 represents soft loans and C2, tax deferrals.
The aid elements (C1A/C2A) in this category are much lower than the capital values
of the aid. From 1995, where a Member State fails to provide data on the aid
element, 15% of the total amount lent by the government is taken as a proxy,
compared with 33% for previous years. This downward adjustment is explained by
the lower level of the aid element that results from generally lower rates of interest
in the Member States when compared with periods covered by previous surveys.

In the case of reimbursable advances, where a Member State does not indicate the
reimbursement ratio, the aid element is taken to be 90% of all advances as the re-
payment ratio has shown to be very low on average.

10.5.4.

Group D - guarantees.
The aid element (D1A) is much lower than the capital value guaranteed. Where this
information on the exact amount of the aid element is not available, the losses to the
Government are taken as an approximation. Where Member State data only contain
figures on the capital value guaranteed, then the aid element is taken to be 10% of
this figure.

7722

IV. Specific problems

11.

Research and Development (R&D)

11.1.

R&D procurement contracts

Research and development procurement contracts have not been found to comprise
State aid. Furthermore, sources of
research and
development contracts intended specifically for military purposes to be isolated and
the impact on the market of such contracts to be evaluated26.

information do not permit

11.2.

Public Research

No figures are given for any aid element contained in the intramural funding of
government or public research establishments or research carried out by institutes of
higher education. Public financing of R&D activities by public non-profit-making
higher education or research establishments is normally not covered by article 87
(1) of the EC Treaty27.

11.3.

Nuclear energy

The Commission is not aware of any non-notified aid that has been granted to the
Nuclear power industry. However Member States may provide support
to the
nuclear energy sector through the intermediary of their public undertakings or
through the intermediary of R&D financing (mainly in the form of R&D
procurement contracts and public research). Only some of this financing is included
in the figures for R&D. Therefore the figures on nuclear energy contained in R&D
figures may well be underestimated. The aid situation in the energy sector is under
review particularly in the context of its liberalisation and concomitant stranded
costs.

12.

Accession of the three new Member States

When comparing the levels of aid granted by Member States, the analysis of the aid
figures concentrates on the annual averages of the two three-year-periods 1994-
1996 and 1996-1998. As the three new Member States only acceded in 1995,
comparisons are made between the 1995-1996 two-year average and the 1996-1998
three-year average.

26
27

See point 2.5. of the Community framework for Research and Development Aid, OJ C 45 of 17.02.1996.
See point 2.4. of the Community framework for Research and Development Aid.

7733

ANNEX II

STATISTICALANNEX

Table A1

Table A2

Table A3

State aid to the manufacturing sector. Annual amounts of aid 1994-1998 in
current prices and national currencies.

State aid to the manufacturing sector. Annual amounts of aid 1994-1998 in
current prices and euro.

State aid to the manufacturing sector. Annual amounts of aid 1994-1998 in
constant prices and euro.

Table A4

State aid to the new German Länder.
Annual averages 1994-1998 in constant prices and euro.

Tables A5/1-15

Total State aid - annual average 1996-1998 by Member State in constant prices
and euro.

Tables A5/16

Total State aid - annual average 1996-1998 in the EU in constant prices and euro.

Tables A6/1-15

Total annual State aid 1994-1998 by Member State in constant prices and euro.

Tables A6/16

Total annual State aid 1994-1998 in the EU in constant prices and euro.

7744

Table A1

State aid to industry in current prices 1994 - 1998

1994

1995
5.954,90

Million national currency
(billion for Italy)
1998
6.980,87

1997
7.231,69

1996
6.311,60

37.887,73 35.360,34 36.683,30

23.901,98

28.393,06

3.729,58

4.419,95

5.019,80

5.578,89

5.400,95

38.998,84 29.763,58 24.518,56

22.576,30

20.493,88

102.283,45 198.820,31 177.941,13 223.565,61 166.004,79

161.043,54 414.705,68 315.272,70 292.205,74 287.765,17

2.287,91

1.904,78

2.507,97

2.482,42

25.943,80 20.125,28 23.732,84

38.010,85

27.141,82

131,85

152,37

236,34

236,99

476,34

17.440.63 22.580,54 19.332,99

16.786,25

15.101,31

1.678,50

1.829,79

1.815,47

1.958,08

2.015,95

1.133,78

1.283,32

1.425,51

1.341,98

1.403,60

82.644,51 33.377,05 33.636,61

43.889,46

38.985,81

2.764,41

2.849,58

2.683,82

3.394,04

Austria

Belgium

Denmark

Germany

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden

United Kingdom

741,24

899,41

1.027,56

1.049,85

935,93

EUR 15

38.239,72 37.539,95 34.099,46

33.730,76

30.095,23

7755

Table A2

State aid to industry in current prices 1994 - 1998

Austria

Belgium

Denmark

Germany

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden

1994

1995

1996

1997

million euro
1998

955,40

494,42

451,73

917,21

603,16

469,81

933,45

682,10

523,13

589,69

745,48

503,87

698,98

720,19

20.264,19 15.884,50 12.840,04

11.492,84

10.407,58

355,12

656,20

582,37

722,68

501,93

1.013,38

2.544,21

1.961,29

1.761,47

1.721,25

400,79

326,82

426,48

414,95

3.941,26

3.084,31

3.655,14

5.748,25

4.111,52

166,14

186,83

297,87

317,04

605,84

9.107,09 10.600,50

9.869,01

8.700,70

7.769,56

42,33

525,32

419,74

47,46

611,42

170,20

296,23

46,20

666,21

171,82

334,66

48,31

607,01

221,01

310,23

49,63

632,34

193,29

380,67

United Kingdom

955,33

1.085,21

1.262,67

1.516,45

1.383,62

EUR 15

38.239,72 37.539,95 34.099,46

33.730,76

30.095,23

7766

Table A3

State aid to industry in constant prices 1994 - 1998

Austria

Belgium

Denmark

Germany

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden

1994

1995

1996

1997

million euro
1998

977,48

526,52

446,30

898,84

613,02

463,87

917,36

682,95

523,13

589,69

745,48

498,78

688,33

706,59

20.633,12 15.405,44 12.564,37

11.492,84

10.330,63

418,82

741,29

614,84

722,68

511,04

1.073,12

2.636,15

1.940,06

1.761,47

1.697,64

401,13

331,23

426,48

414,43

4.076,76

3.117,11

3.627,11

5.748,25

4.068.96

183,92

211,58

323,22

317,04

607,07

10.230,39 12.607,34 10.282,74

8.700,70

7.609,16

44,24

543,89

464,87

47,83

601,82

178,08

326,82

46,25

659,63

173,71

333,51

48,31

607,01

221,01

310,23

48,92

621,44

189,07

388,48

United Kingdom

1.168,11

1.382,10

1.524,66

1.516,45

1.321,01

EUR 15

40.341,24 39.614,83 34.485,53

33.730,76

29.701,55

7777

Table A4

German state aid to the new Länder - yearly average 1996 - 1998

Million euro

in per cent

in per cent
of total aid

Grants

4.788,33

55,63

41,75

Tax exemptions

998,22

11,60

Equity participation

12,23

0,14

8,70

0,11

Soft loans

2.329,02

27,06

20,31

Tax deferrals

Guarantees

0,00

478,98

0,00

5,57

0,00

4,18

TOTAL

8.607

100

75

During the years of 1996 to 1998 aid totalling a yearly average of

€

8.607 million was granted to

the new Länder. This volume represents 75% of all German aid to the manufacturing sector that
has continued to decrease since 1993 and includes the yearly average of
3.514 million
“Treuhand” aid.

€

7788

Table A5/1
Total state aid - Annual averages 1996-1998

SECTOR / FUNCTION

1.1. Agriculture (See EUR totals)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and cultural sector
-Tourism
-Financial Services

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

TOTAL
in %
TOTAL MANUFACTURING
in %

AUSTRIA

A1A

A2A

B1A

C1A

C2A

D1A TOTAL

in %

TOTAL

in %

FORMS OF AID

T O T A L A I D MANUFACTURING

In million euro

0,00

0,00

0,00

0,00

0,00

0,00

0,00

0,00

-

-

45,26

15,48

6,63
2,19
2,95
0,00
0,23
0,77
0,00
2,71

29,78

0,15
0,00
27,85
27,42
0,00
0,00
0,00
0,41
0,00
1,38
0,00

6,25

4,93
1,32

0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,00
0,00
0,00
0,00

22,03

1.042,19

22,03

0,00
0,00
0,83
0,00
0,00
0,00
0,00
21,20

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

2,49

0,00
2,49

356,38

152,72
50,37
67,93
0,00
5,21
17,81
0,00
62,33

685,82

3,50
0,00
641,26
631,34
0,00
0,00
0,00
9,36
0,00
31,69
0,00

143,84

113,45
30,38

24,51
2,07
24,51
4,95

1.186,03

495,26

351,42

338,56

152,72
50,37
67,93
0,00
5,21
0,00
0,00
62,33

12,86

3,50
0,00
0,00
-
-
-
-
9,36
0,00
-
-

143,84

113,45
30,38

495,26

495,26

70,96

68,36

30,84
10,17
13,72
0,00
1,05
0,00
0,00
12,59

2,60

0,71
0,00
0,00
-
-
-
-
1,89
0,00
-
-

29,04

22,91
6,13

100,00

100,00

976,45

296,03

137,15
49,79
54,39
0,00
5,21
15,68
0,00
33,79

680,43

3,50
0,00
641,26
631,34
0,00
0,00
0,00
9,36
0,00
26,30
0,00

81,92

60,67
21,25

1.058,37
89,24
375,13
75,74

0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,00
0,00
0,00
0,00

0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,00
0,00
0,00
0,00

43,71

38,32

15,57
0,57
12,71
0,00
0,00
2,13
0,00
7,34

5,39

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
5,39
0,00

59,43

52,78
6,65

103,14
8,70
95,62
19,31

7799

Table A5/2
Total state aid - Annual averages 1996-1998

SECTOR / FUNCTION

1.1. Agriculture (See EUR totals)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and cultural sector
-Tourism
-Financial Services

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

BELGIUM

A1A

A2A

B1A

C1A

C2A

D1A TOTAL

in %

TOTAL

in %

FORMS OF AID

T O T A L A I D MANUFACTURING

In million euro

3,05

0,00

0,00

0,00

0,00

0,00

3,05

0,11

-

2.009,13

203,49

315,97

111,80

87,53
5,30
113,04
2,38
0,47
96,80
9,20
1,25

1.693,17

2,09
0,00
1.678,70
324,38
0,00
0,00
0,00
0,22
4,10
8,06
0,00

228,89

228,89
0,00

0,80
0,00
0,14
0,00
0,00
0,00
0,00
110,86

91,69

0,00
0,00
0,00
0,00
0,00
0,00
0,00
91,69
0,00
0,00
0,00

0,00

0,00
0,00

32,04

32,04

0,00
0,00
0,00
0,00
0,00
0,00
0,00
32,04

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

29,51

29,51

28,26
0,00
0,57
0,68
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,18

0,18
0,00

82,30

18,08

4,19
0,19
4,26
0,43
0,02
3,48
0,33
5,19

64,22

0,08
0,00
60,40
11,67
0,00
0,00
0,00
3,31
0,15
0,29
0,00

8,68

8,68
0,00

0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

3,67

3,67
0,00

3,67
0,14
3,67
0,50

13,34

2.287,51

13,34

502,65

0,00
0,00
4,54
8,80
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

8,41

8,41
0,00

21,75
0,86
21,75
2,97

116,59
5,30
118,28
11,86
0,47
96,80
9,20
144,15

1.784,86

2,09
0,00
1.678,70
324,38
0,00
0,00
0,00
91,91
4,10
8,06
0,00

241,15

241,15
0,00

2.531,71

731,79

490,65

396,65

116,59
5,30
118,28
11,86
0,47
0,00
0,00
144,15

94,00

2,09
0,00
0,00
-
-
-
-
91,91
0,00
-
-

241,15

241,15
0,00

731,79

731,79

-

67,05

54,20

15,93
0,72
16,16
1,62
0,06
0,00
0,00
19,70

12,84

0,29
0,00
0,00
-
-
-
-
12,56
0,00
-
-

32,95

32,95
0,00

100,00

100,00

TOTAL
in %
TOTAL MANUFACTURING
in %

2.241,07
88,52
441,15
60,28

203,49
8,04
203,49
27,81

32,04
1,27
32,04
4,38

29,69
1,17
29,69
4,06

8800

Table A5/3
Total state aid - Annual averages 1996-1998

SECTOR / FUNCTION

1.1. Agriculture (See EUR totals)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and cultural sector
-Tourism
-Financial Services

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

DENMARK

FORMS OF AID

A1A

A2A

B1A

C1A

C2A

D1A

T O T A L A I D MANUFACTURING
TOTAL

TOTAL

in %

in %

In million euro

9,97

0,00

0,00

0,00

0,00

0,00

9,97

0,65

-

-

1.071,02

217,59

543,80

217,59

135,51
16,29
14,70
17,04
191,97
75,22
93,07
0,00

527,22

0,00
59,48
443,81
139,29
0,00
0,00
0,00
1,91
13,37
8,66
0,00

9,89

9,89
0,00

1,35
216,24
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

6,80

1.335,91

86,82

52,56

10,91
15,11
1,19
1,92
12,48
4,89
6,05
0,00

34,26

0,00
3,87
28,84
9,05
0,00
0,00
0,00
0,12
0,87
0,56
0,00

0,64

0,64
0,00

701,78

640,40

167,93
232,53
18,35
29,62
191,97
0,00
0,00
0,00

61,39

0,00
59,48
0,00
-
-
-
-
1,91
0,00
-
-

9,89

9,89
0,00

98,61

89,98

23,60
32,67
2,58
4,16
26,97
0,00
0,00
0,00

8,63

0,00
8,36
0,00
-
-
-
-
0,27
0,00
-
-

1,39

1,39
0,00

808,69

167,93
232,53
18,35
29,62
191,97
75,22
93,07
0,00

527,22

0,00
59,48
443,81
139,29
0,00
0,00
0,00
1,91
13,37
8,66
0,00

9,89

9,89
0,00

1.355,77

711,67

711,67

711,67

100,00

100,00

6,80

3,47
0,00
3,33
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

6,80
0,50
6,80
0,95

0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,00
0,00
0,00
0,00

0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,00
0,00
0,00
0,00

40,51

40,51

27,60
0,00
0,32
12,58
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

40,51
2,99
40,51
5,69

8811

TOTAL
in %
TOTAL MANUFACTURING
in %

1.090,88
80,46
446,78
62,78

217,59
16,05
217,59
30,57

GERMANY

A1A

A2A

B1A

C1A

C2A

D1A TOTAL

in %

TOTAL

in %

FORMS OF AID

T O T A L A I D MANUFACTURING

In million euro

16,44

0,00

0,00

0,00

0,00

0,00

16,44

0,06

-

Table A5/4
Total state aid - Annual averages 1996-1998

SECTOR / FUNCTION

1.1. Agriculture (See EUR totals)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and cultural sector
-Tourism
-Financial Services

17.165,39

353,34

29,31

1.048,76

1.707,98

206,14

1.066,61
65,15
209,15
5,97
227,86
49,64
27,59
56,00

0,00
0,00
205,12
0,00
1,02
0,00
0,00
0,00

15.457,41

147,20

2,25
360,86
9.930,46
4.186,68
0,00
4.802,72
341,36
15,10
4,66
0,00
0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
145,44
0,00
1,76
0,00

29,31

0,00
0,00
6,81
0,00
0,00
0,00
0,00
22,50

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

906,25

34,48
53,04
373,57
0,00
41,99
0,00
3,16
400,02

142,51

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,61
0,00
141,90

88,42

70,43

0,00
0,00
70,43
0,00
0,00
0,00
0,00
0,00

17,99

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
17,99
0,00

260,43

18.945,66

253,30

3.173,41

1,20
0,00
110,51
0,67
0,00
0,00
0,00
140,92

1.102,29
118,19
975,59
6,64
270,87
49,64
30,75
619,44

7,13

15.772,25

0,07
0,00
0,00
0,00
0,00
0,00
0,00
0,00
1,01
6,05
0,00

2,32
360,86
9.930,46
4.186,68
0,00
4.802,72
341,36
160,54
6,29
25,80
141,90

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

4.609,54

1.000,49

0,00

1.786,68

86,06

363,09

7.845,87

521,48
4.087,79

1,02
998,22

0,00
0,00

25,86
1.760,82

0,00
0,00

0,00
363,09

548,37
7.209,92

TOTAL
in %
TOTAL MANUFACTURING
in %

21.791,36
81,29
6.618,50
57,74

1.353,84
5,05
1.352,07
11,80

29,31
0,11
29,31
0,26

2.835,45
10,58
2.689,78
23,47

174,49
0,65
156,50
1,37

623,52
2,33
616,46
5,38

26.807,96

11.462,61

8822

65,47

10,97

3,81
0,41
3,37
0,02
0,94
0,17
0,11
2,14

54,50

0,01
1,25
34,32
14,47
0,00
16,60
1,18
0,55
0,02
0,09
0,49

27,11

1,89
24,92

3.616,74

3.093,02

1.102,29
118,19
975,59
6,64
270,87
0,00
0,00
619,44

523,72

2,32
360,86
0,00
-
-
-
-
160,54
0,00
-
-

7.845,87

548,37
7.209,92

11.462,61

11.462,61

-

31,55

26,98

9,62
1,03
8,51
0,06
2,36
0,00
0,00
5,40

4,57

0,02
3,15
0,00
-
-
-
-
1,40
0,00
-
-

68,45

4,78
62,90

100,00

100,00

Table A5/5
Total state aid - Annual averages 1996-1998

SECTOR / FUNCTION

1.1. Agriculture (See EUR totals)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and cultural sector
-Tourism
-Financial Services

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

TOTAL
in %
TOTAL MANUFACTURING
in %

GREECE

FORMS OF AID

A1A

A2A

B1A

C1A

C2A

D1A

T O T A L A I D MANUFACTURING
TOTAL

TOTAL

in %

in %

In million euro

13,87

0,00

0,00

0,00

0,00

0,00

13,87

0,97

-

0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,00
0,00
0,00
0,00

0,11

0,11

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,11

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,11
0,01
0,11
0,02

707,14

49,38

0,88

0,09
0,01
0,55
0,23
0,00
0,00
0,00
0,01

48,51

0,75
0,53
47,21
0,00
20,11
0,00
0,00
0,00
0,00
0,00
0,00

40,85

0,00
40,85

12,56

1,23
0,10
7,83
3,28
0,00
0,00
0,00
0,11

694,58

10,76
7,65
676,10
0,00
288,01
0,00
0,00
0,00
0,06
0,02
0,00

585,02

0,00
585,02

1.306,03

615,99

30,97

12,56

1,23
0,10
7,83
3,28
0,00
0,00
0,00
0,11

18,41

10,76
7,65
0,00
-
-
-
-
0,00
0,00
-
-

585,02

0,00
585,02

615,99

615,99

415,36

9,56

1,23
0,10
7,83
0,39
0,00
0,00
0,00
0,00

405,81

10,02
7,65
388,09
0,00
0,00
0,00
0,00
0,00
0,03
0,02
0,00

567,52

0,00
567,52

996,76
76,32
594,75
96,55

2,89

2,89

0,00
0,00
0,00
2,89
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

2,89
0,22
2,89
0,47

288,01

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

288,01

0,00
0,00
288,01
0,00
288,01
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

288,01
22,05
0,00
0,00

0,76

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,76

0,74
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,02
0,00
0,00

17,50

0,00
17,50

18,26
1,40
18,23
2,96

8833

-

5,03

2,04

0,20
0,02
1,27
0,53
0,00
0,00
0,00
0,02

2,99

1,75
1,24
0,00
-
-
-
-
0,00
0,00
-
-

94,97

0,00
94,97

100,00

100,00

Table A5/6
Total state aid - Annual averages 1996-1998

SECTOR / FUNCTION

1.1. Agriculture (See EUR totals)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and cultural sector
-Tourism
-Financial Services

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

TOTAL
in %
TOTAL MANUFACTURING
in %

SPAIN

A1A

A2A

FORMS OF AID

B1A

C1A

C2A

D1A

T O T A L A I D MANUFACTURING
TOTAL

TOTAL

in %

in %

In million euro

44,83

0,00

0,00

0,00

0,00

0,00

44,83

0,78

-

-

0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,00
0,00
0,00
0,00

0,40

4.397,93

0,40

0,00
0,00
0,19
0,00
0,00
0,00
0,00
0,22

748,78

185,16
17,74
261,18
1,93
18,76
110,96
43,22
109,83

0,00

3.649,15

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,40
0,01
0,40
0,02

86,04
665,35
1.579,04
296,15
0,00
739,20
337,06
187,77
21,83
32,87
0,00

265,98

206,36
59,61

4.708,73

1.799,73

76,06

12,95

3,20
0,31
4,52
0,03
0,32
1,92
0,75
1,90

63,11

1,49
11,51
27,31
5,12
0,00
12,78
5,83
3,25
0,38
0,57
0,00

4,60

3,57
1,03

1.533,75

594,60

185,16
17,74
261,18
1,93
18,76
0,00
0,00
109,83

939,15

86,04
665,35
0,00
-
-
-
-
187,77
0,00
-
-

265,98

206,36
59,61

85,22

33,04

10,29
0,99
14,51
0,11
1,04
0,00
0,00
6,10

52,18

4,78
36,97
0,00
-
-
-
-
10,43
0,00
-
-

14,78

11,47
3,31

1.799,73

1.799,73

100,00

100,00

4.194,44

580,68

156,75
17,74
145,39
1,93
18,76
110,96
43,22
85,93

3.613,76

50,82
665,35
1.579,04
296,15
0,00
739,20
337,06
187,77
21,83
32,69
0,00

252,24

197,15
55,09

4.491,51
95,39
1.582,68
87,94

0,86

0,86

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,86

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,86
0,02
0,86
0,05

56,88

145,33

21,67

145,16

0,00
0,00
3,78
0,00
0,00
0,00
0,00
17,89

35,22

35,22
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

4,52

0,00
4,52

61,41
1,30
61,41
3,41

28,40
0,00
111,82
0,00
0,00
0,00
0,00
4,93

0,17

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,17
0,00

9,22

9,22
0,00

154,55
3,28
154,38
8,58

8844

Table A5/7
Total state aid - Annual averages 1996-1998

SECTOR / FUNCTION

1.1. Agriculture (See EUR totals)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and cultural sector
-Tourism
-Financial Services

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

FINLAND

A1A

A2A

FORMS OF AID

B1A

C1A

C2A

D1A

T O T A L A I D MANUFACTURING
TOTAL

TOTAL

in %

in %

In million euro

2,00

0,00

0,00

0,00

0,00

0,00

2,00

0,10

-

-

377,23

281,11

131,94
5,38
26,33
38,59
25,71
50,98
0,00
2,18

96,12

0,00
33,99
43,74
40,67
0,00
0,00
0,00
6,25
12,15
0,00
0,00

55,91

55,91
0,00

1,83

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

1,83

0,00
0,00
0,00
0,00
0,00
0,00
0,00
1,83
0,00
0,00
0,00

8,19

8,19
0,00

0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,00
0,00
0,00
0,00

21,19

16,38

6,90
0,26
3,31
1,89
1,26
2,50
0,00
0,25

4,81

0,00
1,67
2,15
2,00
0,00
0,00
0,00
0,40
0,60
0,00
0,00

3,22

3,22
0,00

3,01

3,01

0,00
0,00
0,00
0,00
0,00
0,00
0,00
3,01

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,11

0,11
0,00

3,12
0,62
3,12
0,80

431,90

333,95

140,60
5,38
67,51
38,59
25,71
50,98
0,00
5,19

97,95

0,00
33,99
43,74
40,67
0,00
0,00
0,00
8,08
12,15
0,00
0,00

65,68

65,68
0,00

499,58

390,72

325,04

282,98

140,60
5,38
67,51
38,59
25,71
0,00
0,00
5,19

42,06

0,00
33,99
0,00
-
-
-
-
8,08
0,00
-
-

65,68

65,68
0,00

390,72

390,72

83,19

72,43

35,98
1,38
17,28
9,88
6,58
0,00
0,00
1,33

10,77

0,00
8,70
0,00
-
-
-
-
2,07
0,00
-
-

16,81

16,81
0,00

100,00

100,00

2,27

2,27

2,27
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

2,27
0,45
2,27
0,58

47,56

47,56

6,38
0,00
41,18
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

1,48

1,48
0,00

49,04
9,82
49,04
12,55

8855

TOTAL
in %
TOTAL MANUFACTURING
in %

435,13
87,10
326,27
83,51

10,02
2,01
10,02
2,56

Table A5/8
Total state aid - Annual averages 1996-1998

SECTOR / FUNCTION

1.1. Agriculture (See EUR totals)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and cultural sector
-Tourism
-Financial Services

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

FRANCE

FORMS OF AID

A1A

A2A

B1A

C1A

C2A

D1A

T O T A L A I D MANUFACTURING
TOTAL

TOTAL

in %

in %

In million euro

24,53

0,00

0,00

0,00

0,00

0,00

24,53

0,15

-

-

7.360,90

545,26

3.579,19

381,73

26,43

165,58 12.059,08

753,05

526,08

554,50

377,40

363,10
31,46
279,25
1,12
22,20
5,95
0,00
49,98

495,01
0,00
0,00
0,00
0,00
15,79
15,28
0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
554,50

354,19
0,00
23,21
0,00
0,00
0,00
0,00
0,00

6.607,85

19,17

3.024,69

2,64
157,81
5.988,93
1.379,73
0,00
28,98
195,92
129,85
103,73
0,00
0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
19,17
0,00
0,00

0,00
0,00
254,72
0,00
254,72
0,00
0,00
39,08
108,37
0,00
2.622,53

200,88

1.601,68

167,55
33,33

977,92
623,76

0,00

0,00
0,00

4,33

0,00
0,00
0,00
0,00
0,00
0,00
0,00
4,33
0,00
0,00
0,00

0,36

0,00
0,36

144,44

2.355,47

0,00
0,00
0,00
144,44
0,00
0,00
0,00
0,00

1.212,30
31,46
302,45
145,56
22,20
21,74
15,28
604,48

21,14

9.703,62

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
21,14

2,64
157,81
6.243,65
1.379,73
254,72
28,98
195,92
199,49
231,48
0,00
2.643,66

74,81

14,61

7,52
0,20
1,88
0,90
0,14
0,13
0,09
3,75

60,20

0,02
0,98
38,73
8,56
1,58
0,18
1,22
1,24
1,44
0,00
16,40

2.678,37

2.318,44

1.212,30
31,46
302,45
145,56
22,20
0,00
0,00
604,48

359,93

2,64
157,81
0,00
-
-
-
-
199,49
0,00
-
-

0,15

1.803,07

11,19

1.803,07

0,15
0,00

1.145,62
657,44

7,11
4,08

1.145,62
657,44

165,73 13.886,68

1,19
144,59
3,23

4.481,44

4.481,44

4.481,44

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

26,43

0,00
0,00
0,00
0,00
0,00
0,00
0,00
26,23
0,20
0,00
0,00

0,00

0,00
0,00

26,43
0,19
26,23
0,59

59,77

51,73

27,05
0,70
6,75
3,25
0,50
0,00
0,00
13,49

8,03

0,06
3,52
0,00
-
-
-
-
4,45
0,00
-
-

40,23

25,56
14,67

100,00

100,00

TOTAL
in %
TOTAL MANUFACTURING
in %

7.586,31
54,63
1.238,27
27,63

2.146,94
15,46
2.096,69
46,79

3.579,19
25,77
593,58
13,25

382,09
2,75
382,09
8,53

8866

Table A5/9
Total state aid - Annual averages 1996-1998

SECTOR / FUNCTION

1.1. Agriculture (See EUR totals)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and cultural sector
-Tourism
-Financial Services

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

TOTAL
in %
TOTAL MANUFACTURING
in %

IRELAND

A1A

A2A

FORMS OF AID

B1A

C1A

C2A

D1A

T O T A L A I D MANUFACTURING
TOTAL

TOTAL

in %

in %

In million euro

13,86

0,00

0,00

0,00

0,00

0,00

13,86

1,70

-

-

54,73

22,30

2,57
0,00
0,50
0,60
0,25
0,00
1,74
16,64

32,42

2,15
0,00
16,98
11,46
0,00
0,00
0,00
0,26
0,52
0,10
12,42

28,13

0,00
28,13

0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,00
0,00
0,00
0,00

14,58

445,29

14,58

181,47

0,00
0,00
0,05
0,19
0,00
0,00
0,00
14,34

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

14,58
2,12
14,58
3,51

20,94
0,00
4,04
4,88
2,02
0,00
14,18
135,41

263,83

17,46
0,00
138,13
93,24
0,00
0,00
0,00
2,11
4,27
0,80
101,06

228,92

0,00
228,92

688,08

415,77

186,85

167,29

20,94
0,00
4,04
4,88
2,02
0,00
0,00
135,41

19,56

17,46
0,00
0,00
-
-
-
-
2,11
0,00
-
-

228,92

0,00
228,92

415,77

415,77

44,94

40,24

5,04
0,00
0,97
1,17
0,49
0,00
0,00
32,57

4,71

4,20
0,00
0,00
-
-
-
-
0,51
0,00
-
-

55,06

0,00
55,06

100,00

100,00

202,16

222,38

45,57

121,32

20,94
0,00
4,00
4,44
2,02
0,00
14,18
0,00

0,00
0,00
0,00
0,25
0,00
0,00
0,00
121,07

156,58

101,06

17,46
0,00
138,13
93,24
0,00
0,00
0,00
0,28
0,00
0,72
0,00

199,24

0,00
199,24

415,26
60,35
248,37
59,74

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
101,06

1,12

0,00
1,12

223,49
32,48
122,43
29,45

1,83

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

1,83

0,00
0,00
0,00
0,00
0,00
0,00
0,00
1,83
0,00
0,00
0,00

28,56

0,00
28,56

30,39
4,42
30,39
7,31

4,35

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

4,35

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
4,27
0,08
0,00

0,00

0,00
0,00

4,35
0,63
0,00
0,00

8877

Table A5/10
Total state aid - Annual averages 1996-1998

SECTOR / FUNCTION

1.1. Agriculture (See EUR totals)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and cultural sector
-Tourism
-Financial Services

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

ITALY

A1A

A2A

FORMS OF AID

B1A

C1A

C2A

D1A

T O T A L A I D MANUFACTURING
TOTAL

TOTAL

in %

in %

In million euro

81,26

0,00

0,00

0,00

0,00

0,00

81,26

0,46

-

-

7.530,48

361,21

1.207,70

1.903,37

354,33

385,12

212,71
21,77
612,90
8,04
37,29
560,28
0,00
450,38

5.627,11

133,77
206,44
5.069,61
640,38
0,00
0,00
0,00
57,90
89,52
69,88
0,00

58,79
0,00
10,01
0,00
0,00
285,53
0,00
0,00

6,88

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
6,71
0,17
0,00

3.118,82

3.245,90

256,73
2.862,09

20,48
3.225,41

0,00
0,00
0,02
0,49
0,00
0,00
0,00
384,61

822,58

0,00
0,00
429,53
0,00
429,53
0,00
0,00
0,00
0,00
0,00
393,06

0,00

0,00
0,00

53,20

16,44

1,63
0,12
3,75
0,92
0,21
4,81
0,00
5,00

36,75

0,76
1,17
31,28
3,64
2,44
0,00
0,00
0,33
0,55
0,42
2,24

36,53

1,59
34,94

0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,00
0,00
0,00
0,00

180,85

9.350,58

180,85

2.890,11

0,00
0,00
0,86
152,70
0,00
0,00
0,00
27,29

285,87
21,77
659,34
161,46
37,29
845,81
0,00
878,58

0,00

6.460,47

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

133,77
206,44
5.499,13
640,38
429,53
0,00
0,00
58,72
96,23
73,12
393,06

4,33

6.420,97

0,13
4,20

279,93
6.141,03

185,18 15.852,80

1,17
185,18
2,09

8.864,20

2.443,23

2.044,30

27,56

23,06

285,87
21,77
659,34
161,46
37,29
0,00
0,00
878,58

398,93

133,77
206,44
0,00
-
-
-
-
58,72
0,00
-
-

6.420,97

279,93
6.141,03

8.864,20

8.864,20

3,22
0,25
7,44
1,82
0,42
0,00
0,00
9,91

4,50

1,51
2,33
0,00
-
-
-
-
0,66
0,00
-
-

72,44

3,16
69,28

100,00

100,00

70,34

66,45

14,37
0,00
35,55
0,23
0,00
0,00
0,00
16,30

3,89

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,82
0,00
3,07
0,00

51,92

2,59
49,33

122,26
0,77
119,19
1,34

8888

TOTAL
in %
TOTAL MANUFACTURING
in %

10.730,56
67,69
4.860,02
54,83

3.607,11
22,75
3.314,70
37,39

1.207,70
7,62
385,12
4,34

Table A5/11
Total state aid - Annual averages 1996-1998

SECTOR / FUNCTION

1.1. Agriculture (See EUR totals)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and cultural sector
-Tourism
-Financial Services

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

TOTAL
in %
TOTAL MANUFACTURING
in %

LUXEMBOURG

A1A

A2A

FORMS OF AID

B1A

C1A

C2A

D1A

T O T A L A I D MANUFACTURING
TOTAL

TOTAL

in %

in %

In million euro

0,00

0,00

0,00

0,00

0,00

0,00

0,00

0,00

-

-

0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,00
0,00
0,00
0,00

41,40

13,91

2,93
1,76
8,96
0,26
0,00
0,00
0,00
0,00

27,49

0,00
0,00
26,71
23,52
0,00
0,00
0,00
0,06
0,72
0,00
0,00

28,87

28,87
0,00

0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,00
0,00
0,00
0,00

46,22

15,52

3,27
1,96
10,00
0,29
0,00
0,00
0,00
0,00

30,69

0,00
0,00
29,82
26,26
0,00
0,00
0,00
0,07
0,81
0,00
0,00

32,24

32,24
0,00

78,45

47,83

15,59

15,52

3,27
1,96
10,00
0,29
0,00
0,00
0,00
0,00

0,07

0,00
0,00
0,00
-
-
-
-
0,07
0,00
-
-

32,24

32,24
0,00

47,83

47,83

32,60

32,46

6,84
4,10
20,91
0,61
0,00
0,00
0,00
0,00

0,14

0,00
0,00
0,00
-
-
-
-
0,14
0,00
-
-

67,40

67,40
0,00

100,00

100,00

45,34

14,64

3,13
1,96
9,26
0,29
0,00
0,00
0,00
0,00

30,69

0,00
0,00
29,82
26,26
0,00
0,00
0,00
0,07
0,81
0,00
0,00

29,55

29,55
0,00

74,89
95,45
44,26
92,54

0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

2,69

2,69
0,00

2,69
3,42
2,69
5,62

0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,00
0,00
0,00
0,00

0,88

0,88

0,14
0,00
0,74
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,88
1,12
0,88
1,84

8899

Table A5/12
Total state aid - Annual averages 1996-1998

SECTOR / FUNCTION

1.1. Agriculture (See EUR totals)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and cultural sector
-Tourism
-Financial Services

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

NETHERLANDS

A1A

A2A

FORMS OF AID

B1A

C1A

C2A

D1A

T O T A L A I D MANUFACTURING
TOTAL

TOTAL

in %

in %

In million euro

6,29

0,00

0,00

0,00

0,00

0,00

6,29

0,25

-

-

1.650,27

126,47

284,95

126,47

127,59
9,63
10,38
0,00
107,08
0,57
0,00
29,71

1.365,32

0,00
38,27
1.305,24
171,29
0,00
0,00
0,00
0,00
21,81
0,00
0,00

78,05

78,05
0,00

0,00
5,59
0,00
0,00
120,88
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,00
0,00
0,00
0,00

34,76

34,76

6,03
0,00
0,00
28,73
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

54,24

54,24

0,00
54,24
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

13,18

1.878,93

13,18

513,61

0,00
0,01
6,86
0,00
0,00
0,00
0,00
6,32

133,61
69,47
17,23
28,73
227,97
0,57
0,00
36,03

0,00

1.365,32

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,00
38,27
1.305,24
171,29
0,00
0,00
0,00
0,00
21,81
0,00
0,00

78,05

78,05
0,00

73,93

20,21

5,26
2,73
0,68
1,13
8,97
0,02
0,00
1,42

53,72

0,00
1,51
51,36
6,74
0,00
0,00
0,00
0,00
0,86
0,00
0,00

3,07

3,07
0,00

34,76
1,77
34,76
5,52

54,24
2,76
54,24
8,62

13,18
0,67
13,18
2,09

1.963,27

629,36

551,31

513,04

133,61
69,47
17,23
28,73
227,97
0,00
0,00
36,03

38,27

0,00
38,27
0,00
-
-
-
-
0,00
0,00
-
-

78,05

78,05
0,00

629,36

629,36

87,60

81,52

21,23
11,04
2,74
4,57
36,22
0,00
0,00
5,72

6,08

0,00
6,08
0,00
-
-
-
-
0,00
0,00
-
-

12,40

12,40
0,00

100,00

100,00

9900

TOTAL
in %
TOTAL MANUFACTURING
in %

1.734,61
88,35
400,70
63,67

126,47
6,44
126,47
20,10

Table A5/13
Total state aid - Annual averages 1996-1998

SECTOR / FUNCTION

1.1. Agriculture (See EUR totals)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and cultural sector
-Tourism
-Financial Services

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

TOTAL
in %
TOTAL MANUFACTURING
in %

PORTUGAL

A1A

A2A

FORMS OF AID

B1A

C1A

C2A

D1A

T O T A L A I D MANUFACTURING
TOTAL

TOTAL

in %

in %

In million euro

2,53

0,00

0,00

0,00

0,00

0,00

2,53

0,14

-

-

0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,00
0,00
0,00
0,00

81,61

16,24

0,71
0,00
0,67
0,03
0,51
4,84
4,21
5,26

65,38

0,06
0,64
9,67
1,57
7,74
0,00
0,02
1,23
51,48
2,08
0,20

1,97

0,00
1,97

0,09

1.434,06

0,09

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,09

285,30

12,51
0,00
11,71
0,56
8,90
85,08
74,05
92,49

0,00

1.148,77

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,12

0,00
0,12

0,21
0,01
0,21
0,11

0,98
11,27
169,83
27,60
136,00
0,00
0,30
21,62
904,65
36,55
3,55

34,56

0,00
34,56

1.471,15

194,59

160,03

126,17

12,51
0,00
11,71
0,56
8,90
0,00
0,00
92,49

33,87

0,98
11,27
0,00
-
-
-
-
21,62
0,00
-
-

34,56

0,00
34,56

82,24

64,84

6,43
0,00
6,02
0,29
4,57
0,00
0,00
47,53

17,40

0,50
5,79
0,00
-
-
-
-
11,11
0,00
-
-

17,76

0,00
17,76

194,59

194,59

100,00

100,00

368,39

908,29

140,40

16,89

271,21

12,51
0,00
11,71
0,56
8,90
85,08
74,05
78,40

9,59

0,00
0,00
0,00
0,00
0,00
0,00
0,00
9,59

4,40

0,00
0,00
0,00
0,00
0,00
0,00
0,00
4,40

97,17

898,70

136,00

0,98
11,27
33,84
27,60
0,00
0,00
0,30
8,93
9,51
32,35
0,00

30,31

0,00
30,31

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
895,14
0,00
3,55

3,13

0,00
3,13

0,00
0,00
136,00
0,00
136,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

401,23
27,27
163,57
84,06

911,42
61,95
12,72
6,54

140,40
9,54
4,40
2,26

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

16,89

0,00
0,00
0,00
0,00
0,00
0,00
0,00
12,69
0,00
4,20
0,00

1,00

0,00
1,00

17,89
1,22
13,69
7,03

9911

Table A5/14
Total state aid - Annual averages 1996-1998

SECTOR / FUNCTION

1.1. Agriculture (See EUR totals)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and cultural sector
-Tourism
-Financial Services

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

TOTAL
in %
TOTAL MANUFACTURING
in %

SWEDEN

A1A

A2A

FORMS OF AID

B1A

C1A

C2A

D1A

T O T A L A I D MANUFACTURING
TOTAL

TOTAL

in %

in %

In million euro

9,13

0,00

0,00

0,00

0,00

0,00

9,13

0,50

-

-

0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,00
0,00
0,00
0,00

74,78

13,48

1,85
2,52
3,07
0,00
0,75
3,35
1,91
0,03

61,31

0,00
0,00
56,58
21,03
0,00
0,00
0,00
0,00
4,72
0,00
0,00

10,60

10,60
0,00

0,62

1.367,37

0,56

0,00
0,00
0,56
0,00
0,00
0,00
0,00
0,00

246,44

33,84
46,00
56,15
0,00
13,77
61,25
34,91
0,51

0,06

1.120,93

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,06
0,00
0,00

0,03

0,03
0,00

0,65
0,04
0,59
0,17

0,00
0,00
1.034,57
384,47
0,00
0,00
0,00
0,00
86,36
0,00
0,00

193,79

193,79
0,00

1.570,29

344,07

150,28

150,28

33,84
46,00
56,15
0,00
13,77
0,00
0,00
0,51

0,00

0,00
0,00
0,00
-
-
-
-
0,00
0,00
-
-

193,79

193,79
0,00

344,07

344,07

43,68

43,68

9,83
13,37
16,32
0,00
4,00
0,00
0,00
0,15

0,00

0,00
0,00
0,00
-
-
-
-
0,00
0,00
-
-

56,32

56,32
0,00

100,00

100,00

1.292,99

172,21

2,06
34,31
32,12
0,00
7,13
61,25
34,91
0,43

1.120,78

0,00
0,00
1.034,57
384,47
0,00
0,00
0,00
0,00
86,21
0,00
0,00

130,71

130,71
0,00

1.432,83
91,25
206,77
60,09

11,69

11,69

0,00
11,69
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

51,76

51,76
0,00

63,45
4,04
63,45
18,44

10,59

10,59

10,49
0,00
0,10
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

10,59
0,67
10,59
3,08

51,47

51,38

21,29
0,00
23,36
0,00
6,65
0,00
0,00
0,08

0,09

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,09
0,00
0,00

11,30

11,30
0,00

62,77
4,00
62,68
18,22

9922

Table A5/15
Total state aid - Annual averages 1996-1998

SECTOR / FUNCTION

1.1. Agriculture (See EUR totals)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and cultural sector
-Tourism
-Financial Services

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

TOTAL
in %
TOTAL MANUFACTURING
in %

UNITED KINGDOM

A1A

A2A

B1A

C1A

C2A

D1A

FORMS OF AID

T O T A L A I D MANUFACTURING
TOTAL

TOTAL

in %

in %

In million euro

31,96

0,00

0,00

0,00

0,00

0,00

31,96

0,42

-

-

4.927,53

1.107,99

155,64
4,09
255,31
92,38
15,09
0,00
585,48
0,00

3.819,54

0,00
7,89
2.779,98
2.556,42
0,00
0,00
781,93
2,21
236,41
11,12
0,00

840,98

606,77
234,21

5.800,47
98,63
1.373,59
94,47

0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

18,53

18,53
0,00

18,53
0,32
18,53
1,27

0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

16,52

16,52
0,00

16,52
0,28
16,52
1,14

0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

0,00
0,00
0,00
0,00

25,85

25,85

0,00
0,00
25,85
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,32

0,25
0,07

26,18
0,45
26,18
1,80

9933

65,72

15,24

2,06
0,05
3,97
1,22
0,20
0,00
7,74
0,00

50,48

0,00
0,10
36,74
33,79
0,00
0,00
10,33
0,03
3,12
0,15
0,00

19,23

4.972,61

19,23

1.153,07

0,00
0,00
19,13
0,10
0,00
0,00
0,00
0,00

155,64
4,09
300,29
92,47
15,09
0,00
585,48
0,00

0,00

3.819,54

0,00
7,89
2.779,98
2.556,42
0,00
0,00
781,93
2,21
236,41
11,12
0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

0,00
0,00

19,23
0,33
19,23
1,32

5.880,92

1.454,04

876,35

11,58

642,07
234,28

8,49
3,10

577,69

567,59

155,64
4,09
300,29
92,47
15,09
0,00
0,00
0,00

10,10

0,00
7,89
0,00
-
-
-
-
2,21
0,00
-
-

876,35

642,07
234,28

1.454,04

1.454,04

39,73

39,04

10,70
0,28
20,65
6,36
1,04
0,00
0,00
0,00

0,69

0,00
0,54
0,00
-
-
-
-
0,15
0,00
-
-

60,27

44,16
16,11

100,00

100,00

Table A5/16
Total state aid - Annual averages 1996-1998

SECTOR / FUNCTION

1.1. Agriculture (See EUR totals)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and cultural sector
-Tourism
-Financial Services

EU 15

FORMS OF AID

A1A
13.339,16
259,71

A2A

B1A

C1A

C2A

0,00
0,00

0,00
0,00

0,00
0,00

0,00
0,00

D1A

T O T A L A I D MANUFACTURING
TOTAL
0,00 13.339,16
259,71
0,00

TOTAL

14,32
0,28

in %

in %

-
-

-
-

In million euro

49.261,90

2.064,06

5.348,22

1.963,53

169,10

700,25 59.507,06

8.288,11

1.688,76

1.039,89

1.764,04

124,68

671,92 13.577,40

2.614,40
262,99
1.785,74
173,13
669,68
1.112,40
881,71
788,06

555,95
233,52
215,27
3,14
121,90
301,32
15,28
242,39

12,76
0,00
10,71
0,49
0,00
0,00
0,00
1.015,93

536,72
53,61
648,88
42,22
48,64
2,13
3,16
428,68

41.298,97

1.266,55

4.308,33

178,40

223,53
1.549,00
31.085,20
10.897,90
0,00
5.570,90
1.656,57
419,83
604,15
189,79
0,00

0,00
0,00
0,00
0,00
0,00
0,00
0,00
238,96
921,03
1,94
104,62

35,22
0,00
1.108,25
0,00
1.108,25
0,00
0,00
40,91
108,37
0,00
3.015,58

0,74
0,00
0,00
0,00
0,00
0,00
0,00
17,84
5,00
12,92
141,90

0,00
54,24
70,43
0,00
0,00
0,00
0,00
0,00

44,42

0,00
0,00
0,00
0,00
0,00
0,00
0,00
26,23
0,20
17,99
0,00

4,67
0,01
146,85
306,89
0,00
0,00
0,00
213,50

3.724,49
604,36
2.877,90
525,87
840,22
1.415,85
900,16
2.688,55

28,33 47.124,99

259,55
0,07
0,00
1.549,00
0,00 32.193,45
0,00 10.897,90
1.108,25
0,00
5.570,90
0,00
1.656,57
0,00
743,78
0,00
1.639,82
1,07
228,69
6,05
3.283,23
21,14

64,09

14,58

4,00
0,65
3,09
0,56
0,90
1,52
0,97
2,89

50,60

0,28
1,66
34,57
11,70
1,19
5,98
1,78
0,80
1,76
0,25
3,53

20,21

3,82
16,30

13.874,13

11.261,39

3.724,49
604,36
2.877,90
525,87
840,22
-
-
2.688,55

2.552,33

259,55
1.549,00
-
-
-
-
-
743,78
-
-
-

18.825,35

3.556,61
15.181,17

32.639,08

32.639,08

42,40

34,50

11,41
1,85
8,82
1,61
2,57
-
-
8,24

7,82

0,80
4,75
-
-
-
-
-
2,28
-
-
-

57,68

10,90
46,51

100,00

100,00

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

10.434,43

5.933,48

33,08

1.939,38

106,25

378,73 18.825,35

2.343,34
8.090,83

1.080,59
4.851,64

0,00
33,08

103,66
1.835,72

20,19
0,00

8,83

3.556,61
369,90 15.181,17

TOTAL
in %
TOTAL MANUFACTURING
in %

73.620,38
79,05
18.920,80
57,97

8.888,78
9,54
7.544,60
23,12

5.381,30
5,78
1.149,10
3,52

3.881,81
4,17
3.716,71
11,39

275,35
0,30
257,16
0,79

1.078,98 93.126,61

1,16

1.050,72 32.639,08

3,22

9944

Table A6/1
Total state aid 1994 - 1998

AUSTRIA

in million euro

SECTOR / FUNCTION

1995

1996

1997

1998

1.1. Agriculture (See EU 15)
1.2. Fisheries

0,0

0,0

0,0

0,0

1057,1

1031,8

1073,6

1021,2

371,9

355,0

387,8

326,3

85,6
44,3
62,7
0,0
5,8
28,1
0,0
145,5

141,5
47,0
63,6
0,0
7,8
19,5
0,0
75,6

163,9
49,5
70,5
0,0
4,2
30,2
0,0
69,4

152,7
54,6
69,6
0,0
3,6
3,8
0,0
42,0

685,1

676,7

685,8

694,9

3,5
0,0
634,7
623,0
0,0
0,0
0,0
9,9
0,0
37,0
0,0

3,5
0,0
633,7
625,2
0,0
0,0
0,0
9,9
0,0
29,5
0,0

3,5
0,0
646,7
638,3
0,0
0,0
0,0
8,7
0,0
26,9
0,0

3,5
0,0
643,3
630,5
0,0
0,0
0,0
9,4
0,0
38,6
0,0

89,1

114,8

153,4

163,3

45,5
43,5

83,8
31,0

123,8
29,6

132,7
30,6

1.146,1 1.146,6 1.227,0 1.184,5
498,8
42,1

446,3
38,9

463,9
40,5

523,1
42,6

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and Culture
-Tourism
-Financial Services

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

TOTAL
TOTAL MANUFACTURING
% of total

9955

Table A6/2
Total state aid 1994 - 1998

BELGIUM

in million euro

SECTOR / FUNCTION

1994

1995

1996

1997

1998

1.1. Agriculture (See EU 15)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and Culture
-Tourism
-Financial Services

3,0

1,3

1,3

1,8

6,0

2369,3

2345,4

2303,8

1963,9

2594,8

451,4

457,3

514,1

472,1

521,8

96,2
10,9
110,2
37,9
0,4
65,6
8,9
121,3

108,4
9,9
89,1
32,2
0,7
81,7
8,6
126,6

119,1
4,6
121,6
24,3
0,1
108,5
8,5
127,4

126,8
1,6
108,0
7,6
0,7
97,2
8,6
121,6

103,9
9,7
125,2
3,7
0,6
84,7
10,5
183,5

1.917,9 1.888,1 1.789,8 1.491,8 2.073,0

2,1
0,0

4,1
0,0

3,3
0,0

2,5
82,1

0,0
0,0
1.534,9 1.583,1 1.494,9 1.479,8 2.061,4
324,1
323,1
0,0
0,0
0,0
0,0
0,0
0,0
0,7
275,1
4,3
7,2
6,6
8,5
0,0
0,0

325,9
0,0
0,0
0,0
0,0
0,8
9,1
0,0

351,3
0,0
0,0
0,0
289,8
5,4
6,5
0,0

333,4
0,0
0,0
0,0
283,8
8,4
6,4
0,0

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

232,3

238,9

241,1

221,2

261,1

232,3
0,0

238,9
0,0

241,1
0,0

221,2
0,0

261,1
0,0

2.604,6 2.585,6 2.546,3 2.186,9 2.861,9
688,3
917,4
24,1
36,0

589,7
27,0

977,5
37,5

898,8
34,8

TOTAL
TOTAL MANUFACTURING
% of total

9966

Table A6/3
Total state aid 1994 - 1998

DENMARK

in million euro

SECTOR / FUNCTION

1994

1995

1996

1997

1998

11,1

7,2

10,5

11,4

8,1

1316,4

1243,0

1419,9

1293,4

1294,5

650,7

650,1

767,0

755,9

903,2

149,9
190,6
34,5
12,1
61,5
197,9
4,2
0,0

193,5
115,4
22,8
35,4
167,3
115,6
0,2
0,0

190,2
188,9
41,0
22,8
144,6
100,1
79,4
0,0

164,0
231,0
13,0
35,2
208,9
1,0
102,9
0,0

149,7
277,7
1,0
30,9
222,5
124,6
96,9
0,0

665,7

592,8

652,9

537,5

391,3

0,0
73,8
566,3
0,0
0,0
0,0
0,0
0,4
15,7
9,6
0,0

3,8

3,8
0,0

0,0
67,7
500,1
0,0
0,0
0,0
0,0
0,4
15,4
9,2
0,0

10,6

10,6
0,0

0,0
88,4
539,3
0,0
0,0
0,0
0,0
0,8
12,7
11,7
0,0

0,0
81,3
436,8
223,3
0,0
0,0
0,0
1,3
13,6
4,4
0,0

0,0
8,7
355,3
194,6
0,0
0,0
0,0
3,6
13,8
9,8
0,0

6,3

6,3
0,0

10,8

12,6

10,8
0,0

12,6
0,0

1.331,3 1.260,7 1.436,6 1.315,5 1.315,1
706,6
682,9
53,7
47,5

745,5
56,7

526,5
39,5

613,0
48,6

1.1. Agriculture (See EU 15)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and Culture
-Tourism
-Financial Services

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

TOTAL
TOTAL MANUFACTURING
% of total

9977

Table A6/4
Total state aid 1994 - 1998

GERMANY

in million euro

SECTOR / FUNCTION

1994

1995

1996

1997

1998

16,0

16,8

15,1

11,2

23,0

26912,7 22395,2 20081,4 19323,1 17432,5

3.127,9

3.405,7

3.295,0

3.171,3

3.053,9

956,1
144,8
866,2
12,8
464,5
0,0
0,2
683,3

1.047,2
144,6
1.025,4
11,5
440,4
0,8
0,3
735,6

1.149,8
124,5
933,2
10,6
303,6
3,4
3,7
766,3

1.081,6
110,5
1.040,4
6,6
257,9
56,1
39,9
578,3

1.075,4
119,6
953,2
2,7
251,1
89,5
48,7
513,8

23.784,8 18.989,4 16.786,4 16.151,8 14.378,5

79,0
892,5

786,0
484,1

4,8
377,3

2,1
421,0
14.241,8 12.902,9 10.710,7 10.049,2
4.191,7
0,0
4.919,1
412,0
171,4
9,3
25,5
142,1

4.208,7
0,0
5.246,7
102,5
161,4
8,0
32,1
142,9

4.250,4
802,3
4.639,9
103,5
191,1
6,4
32,4
141,7

4.132,4
0,0
7.762,8
184,7
141,8
6,3
42,7
134,6

0,0
284,2
9.031,4
4.159,7
0,0
4.242,4
509,6
148,8
1,6
19,8
140,7

16.093,6 10.838,3

8.732,9

7.822,9

6.981,9

361,0

625,0
15129,92 10257,58 8111,345 7206,591 6311,827

380,5

483,3

536,8

43.022,3 33.250,2 28.829,4 27.157,2 24.437,3
20.633,1 15.405,4 12.564,4 11.492,8 10.330,6
42,3

46,3

48,0

43,6

42,3

1.1. Agriculture (See EU 15)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and Culture
-Tourism
-Financial Services

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

TOTAL
TOTAL MANUFACTURING
% of total

9988

Table A6/5
Total state aid 1994 - 1998

GREECE

in million euro

SECTOR / FUNCTION

1994

1995

1996

1997

1998

1.1. Agriculture (See EU 15)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and Culture
-Tourism
-Financial Services

1,0

0,9

0,9

17,1

23,7

1068,0

765,8

762,1

773,0

586,4

247,1

12,4
0,0
8,7
125,4
0,0
0,0
0,0
100,6

3,4

3,4
0,0
0,0
0,0
0,0
0,0
0,0
0,0

3,1

3,1
0,0
0,0
0,0
0,0
0,0
0,0
0,0

0,3

0,3
0,0
0,0
0,0
0,0
0,0
0,0
0,0

34,2

0,3
0,3
23,5
9,8
0,0
0,0
0,0
0,3

820,9

762,4

758,9

772,7

552,1

0,0
30,7
789,1
0,0
502,6
0,0
0,0
0,9
0,2
0,0
0,0

0,0
0,0
762,4
0,0
457,7
0,0
0,0
0,0
0,0
0,0
0,0

0,0
0,0
758,9
0,0
424,1
0,0
0,0
0,0
0,0
0,0
0,0

32,3
1,1
739,3
0,0
396,8
0,0
0,0
0,0
0,0
0,0
0,0

0,0
21,8
530,1
0,0
43,1
0,0
0,0
0,0
0,2
0,0
0,0

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

140,1

737,9

611,7

688,4

455,0

0,0
140,1

0,0
737,9

0,0
611,7

0,0
688,4

0,0
455,0

1.209,1 1.504,6 1.374,6 1.478,5 1.065,0
511,0
614,8
48,0
44,7

722,1
48,8

418,8
34,6

741,3
49,3

TOTAL
TOTAL MANUFACTURING
% of total

9999

Table A6/6
Total state aid 1994 - 1998

SPAIN

in million euro

SECTOR / FUNCTION

1994

1995

1996

1997

1998

1.1. Agriculture (See EU 15)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and Culture
-Tourism
-Financial Services

88,0

73,1

32,5

31,8

70,2

4109,8

5769,4

4751,8

4298,6

4143,4

612,7

718,0

749,3

837,0

660,0

148,4
26,3
196,3
14,2
21,5
95,7
42,4
67,9

107,4
39,6
186,5
2,6
26,1
180,7
114,6
60,5

128,1
22,8
333,8
2,7
9,0
163,7
33,1
56,1

230,3
15,2
240,3
1,6
22,3
87,0
44,8
195,5

197,0
15,2
209,4
1,5
25,0
82,1
51,8
77,9

3.497,2 5.051,4 4.002,4 3.461,6 3.483,4

72,1
538,8

127,9 1.374,6
323,9
195,9

29,5
156,5
676,6
780,6
2.058,9 1.946,6 1.778,6 1.554,4 1.404,1
289,9
300,5
0,0
0,0
748,4
764,7
395,0
252,3
176,6
208,6
22,0
24,5
31,1
36,6
0,0
0,0

298,0
0,0
704,5
363,8
178,1
19,0
30,9
0,0

303,3
0,0
826,9
264,5
259,9
19,7
35,2
0,0

327,4
0,0
793,0
217,7
55,5
21,8
26,4
0,0

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

219,2

254,9

241,9

267,2

288,8

194,5
24,7

200,6
54,4

185,5
56,4

209,2
58,1

224,5
64,3

4.417,0 6.097,4 5.026,1 4.597,6 4.502,4
1.073,1 2.636,1 1.940,1 1.761,5 1.697,6
37,7

24,3

38,3

38,6

43,2

TOTAL
TOTAL MANUFACTURING
% of total

110000

Table A6/7
Total state aid 1994 - 1998

FINLAND

in million euro

SECTOR / FUNCTION

1995

1996

1997

1998

1.1. Agriculture (See EU 15)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and Culture
-Tourism
-Financial Services

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

4,6

2,4

1,9

1,7

422,9

373,9

469,4

452,3

368,7

308,8

329,4

363,6

139,3
11,6
79,1
41,7
12,7
78,6
0,0
5,8

117,7
6,3
74,6
35,0
13,8
54,4
0,0
7,0

147,8
4,8
64,5
47,7
9,7
48,5
0,0
6,5

156,3
5,0
63,4
33,0
53,7
50,1
0,0
2,1

54,2

65,2

140,0

88,7

0,0
0,0
48,4
44,0
0,0
0,0
0,0
5,8
0,0
0,0
0,0

0,0
0,0
47,1
43,6
0,0
0,0
0,0
10,2
7,8
0,0
0,0

0,0
75,4
43,0
40,1
0,0
0,0
0,0
8,0
13,6
0,0
0,0

0,0
26,6
41,1
38,2
0,0
0,0
0,0
6,0
15,0
0,0
0,0

105,2

66,6

62,2

68,3

105,2
0,0

66,6
0,0

62,2
0,0

68,3
0,0

TOTAL
TOTAL MANUFACTURING
% of total

532,7
401,1
75,3

443,0
331,2
74,8

533,4
426,5
79,9

522,3
414,4
79,3

110011

Table A6/8
Total state aid 1994 - 1998

FRANCE

in million euro

SECTOR / FUNCTION

1994

1995

1996

1997

1998

1.1. Agriculture (See EU 15)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and Culture
-Tourism
-Financial Services

25,5

47,6

24,8

24,5

24,3

12283,9 11829,7 11710,3 13273,2 11193,7

2.888,8

1.928,4

2.216,4

3.335,1

1.514,9

1.247,9
38,9
300,6
650,4
25,7
23,8
72,3
529,3

1.089,2
42,6
238,7
352,1
21,6
54,1
92,9
37,2

1.404,3
34,1
386,6
194,4
24,4
53,4
45,8
73,3

1.180,6
30,2
285,5
105,9
21,2
5,9
0,0
1.705,7

1.052,0
30,0
235,2
136,4
21,0
5,9
0,0
34,5

9.395,2

9.901,3

9.493,9

9.938,1

9.678,8

0,0
58,4
7.510,1
1.335,8
1.571,4
308,2
635,9
235,9
168,9
0,0
477,7

0,0
55,1
6.747,3
1.330,6
774,4
57,5
618,8
209,0
153,6
0,0
2.059,9

7,9
46,8
6.777,0
1.300,3
764,2
86,9
587,8
199,3
156,5
0,0
1.631,7

0,0
278,2
6.020,0
1.448,1
0,0
0,0
0,0
193,6
384,7
0,0
3.061,6

0,0
148,4
5.933,9
1.390,8
0,0
0,0
0,0
205,6
153,2
0,0
3.237,7

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

989,7

1.071,6

1.255,9

1.947,3

2.206,0

583,8
405,9

649,9
421,7

756,0
499,9

1.313,2
634,1

1.367,7
838,3

13.299,2 12.948,8 12.991,0 15.245,0 13.424,0
4.069,0
3.627,1
30,3
27,9

3.117,1
24,1

5.748,2
37,7

4.076,8
30,7

TOTAL
TOTAL MANUFACTURING
% of total

110022

Table A6/9

Total state aid 1994 - 1998

IRELAND

in million euro

SECTOR / FUNCTION

1994

1995

1996

1997

1998

1.1. Agriculture (See EU 15)

1.2. Fisheries

2. Manufacturing / Services

of which:

2.1. Horizontal Objectives

of which:

-Research and Development

-Environment

-SME

-Trade

-Energy saving

-Employment aid

-Training aid

-Other Objectives

2.2. Particular Sectors

of which:

-Steel

-Shipbuilding

-Transports

of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors

-Media and Culture

-Tourism

-Financial Services

3. Regional Aid

of which

3.1. Regions under 87(3)c

3.2. Regions under 87(3)a

15,1

10,8

14,3

14,0

13,3

325,1

318,4

302,0

361,3

672,6

66,1

60,9

73,8

78,0

392,6

10,3

0,0

3,8

12,2

0,0

0,0

14,5

25,3

17,0

23,3

28,3

11,2

0,0

1,9

4,8

0,1

0,0

11,1

25,9

0,0

3,7

4,9

1,1

0,0

19,5

21,3

0,0

5,0

5,2

2,5

0,0

15,2

21,8

0,0

3,4

4,6

2,4

0,0

7,8

363,2

259,0

257,6

228,2

283,3

280,0

0,0

0,0

216,9

71,7

69,7

0,0

0,0

7,3

0,6

1,6

0,0

0,0

212,3

84,3

69,4

0,0

0,0

4,9

4,6

1,1

52,4

0,0

136,6

108,9

0,0

0,0

0,0

0,5

3,8

0,8

0,0

0,0

140,9

85,1

0,0

0,0

0,0

1,4

4,0

0,5

0,0

0,0

136,9

85,8

0,0

0,0

0,0

4,4

5,0

1,1

32,6

34,7

34,2

136,5

132,5

125,1

156,9

216,1

252,8

217,8

0,0

125,1

0,0

156,9

0,0

216,1

0,0

252,8

0,0

217,8

TOTAL

TOTAL MANUFACTURING

% of total

465,2

183,9

39,5

486,1

211,6

43,5

532,4

323,2

60,7

628,1

317,0

50,5

903,7

607,1

67,2

110033

Table A6/10
Total state aid 1994 - 1998

ITALY

in million euro

SECTOR / FUNCTION

1994

1995

1996

1997

1998

1.1. Agriculture (See EU 15)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and Culture
-Tourism
-Financial Services

120,4

113,4

83,4

81,3

79,0

11399,2 10023,4 10907,2

8424,6

8719,9

2.934,1

2.888,2

3.761,5

1.801,8

3.107,0

355,2
7,6
759,7
400,3
123,5
58,4
0,0
1.229,5

302,7
31,9
759,1
486,5
83,1
36,7
0,0
1.188,3

309,3
30,4
699,9
296,4
46,9
592,2
0,0
1.786,5

320,0
10,6
732,4
183,3
44,6
34,4
0,0
476,5

228,3
24,3
545,7
4,6
20,5
1.910,9
0,0
372,8

8.465,1

7.135,2

7.145,7

6.622,8

5.612,9

1.266,5
153,7
6.579,0
721,5
0,0
0,0
0,0
197,1
88,9
180,0
0,0

178,7
444,6
6.197,7
702,8
0,0
0,0
0,0
70,6
110,5
133,2
0,0

188,4
300,0
5.205,2
657,5
0,0
0,0
0,0
59,6
109,0
104,5
1.179,2

206,9
102,0
6.109,2
640,7
1.036,6
0,0
0,0
53,9
91,2
59,5
0,0

6,0
217,4
5.183,1
622,9
251,9
0,0
0,0
62,7
88,4
55,4
0,0

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

5.737,4

9.062,0

6.565,5

6.570,4

6.127,0

252,8
5.484,6

148,4
8.913,6

275,7
6.289,9

282,3
6.288,1

281,9
5.845,1

17.257,0 19.198,8 17.556,2 15.076,3 14.925,9
7.609,2
10.230,4 12.607,3 10.282,7
51,0
58,6

8.700,7
57,7

65,7

59,3

TOTAL
TOTAL MANUFACTURING
% of total

110044

Table A6/11
Total state aid 1994 - 1998

LUXEMBOURG

in million euro

SECTOR / FUNCTION

1994

1995

1996

1997

1998

1.1. Agriculture (See EU 15)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and Culture
-Tourism
-Financial Services

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

0,0

0,0

0,0

0,0

0,0

221,3

43,6

39,6

25,1

74,0

17,7

12,0

16,0

13,5

17,1

2,2
4,9
10,4
0,3
0,0
0,0
0,0
0,0

3,9
0,3
7,4
0,4
0,0
0,0
0,0
0,0

2,9
1,9
10,9
0,3
0,0
0,0
0,0
0,0

2,6
2,2
8,4
0,3
0,0
0,0
0,0
0,0

4,3
1,8
10,8
0,3
0,0
0,0
0,0
0,0

203,6

31,6

23,6

11,6

56,9

0,0
0,0
203,5
112,8
0,0
0,0
0,0
0,1
0,0
0,0
0,0

2,0
0,0
29,5
19,0
0,0
0,0
0,0
0,1
0,0
0,0
0,0

0,0
0,0
23,5
17,0
0,0
0,0
0,0
0,1
0,0
0,0
0,0

0,0
0,0
11,5
7,4
0,0
0,0
0,0
0,1
0,0
0,0
0,0

0,0
0,0
54,4
54,4
0,0
0,0
0,0
0,1
2,4
0,0
0,0

26,5

33,7

30,2

34,7

31,8

26,5
0,0

33,7
0,0

30,2
0,0

34,7
0,0

31,8
0,0

TOTAL
TOTAL MANUFACTURING
% of total

247,7
44,2
17,9

77,3
47,8
61,8

69,8
46,3
66,3

59,9
48,3
80,7

105,7
48,9
46,3

110055

Table A6/12
Total state aid 1994 - 1998

NETHERLANDS

in million euro

SECTOR / FUNCTION

1994

1995

1996

1997

1998

1.1. Agriculture (See EU 15)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and Culture
-Tourism
-Financial Services

2,5

2,5

8,6

5,7

4,6

1656,1

1723,9

2165,1

1335,0

2136,7

414,9

424,8

509,3

511,1

520,4

168,8
48,0
31,5
14,7
137,1
1,3
0,0
13,4

121,7
58,0
20,1
16,5
187,5
0,6
0,0
20,4

110,7
58,8
17,4
22,6
261,2
1,6
0,0
37,1

136,0
67,9
17,5
29,8
228,0
0,1
0,0
31,8

154,2
81,7
16,8
33,8
194,7
0,0
0,0
39,1

1.241,2 1.299,1 1.655,8

823,9 1.616,4

0,0
23,7

0,0
60,9

0,0
71,3
1.195,1 1.216,4 1.563,1
107,8
133,9
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
21,3
21,9
0,0
0,0
0,0
0,0

164,4
0,0
0,0
0,0
0,0
22,4
0,0
0,0

0,0
20,9

0,0
22,7
781,5 1.571,1
252,3
153,8
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
22,6
21,5
0,0
0,0
0,0
0,0

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

106,6

116,7

80,6

75,1

78,4

106,6
0,0

116,7
0,0

80,6
0,0

75,1
0,0

78,4
0,0

1.765,2 1.843,1 2.254,3 1.415,8 2.219,7
621,4
659,6
28,0
29,3

607,0
42,9

543,9
30,8

601,8
32,7

TOTAL
TOTAL MANUFACTURING
% of total

110066

Table A6/13
Total state aid 1994 - 1998

PORTUGAL

in million euro

SECTOR / FUNCTION

1994

1995

1996

1997

1998

1.1. Agriculture (See EU 15)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and Culture
-Tourism
-Financial Services

2,2

1,7

3,4

2,2

2,0

1209,0

946,9

1205,1

1764,1

1333,0

306,0

289,9

310,5

262,0

283,4

21,0
0,0
0,7
0,4
6,1
86,8
111,0
79,9

15,5
0,0
0,4
0,6
5,2
119,6
85,4
63,3

12,9
0,0
0,0
0,6
8,5
111,6
69,2
107,6

12,6
0,0
9,5
0,6
10,6
72,9
72,2
83,7

12,1
0,0
25,6
0,5
7,6
70,7
80,7
86,2

903,0

656,9

894,6 1.502,0 1.049,7

291,2
11,1
393,7
67,5
281,2
2,0
4,0
1,6
149,3
48,1
1,9

54,0
0,0
373,5
65,6
266,8
0,0
0,9
17,4
171,9
37,3
1,8

0,0
0,0
268,5
54,2
206,6
0,0
0,9
16,8

2,3
33,8
221,6
18,9
201,4
0,0
0,0
25,4
551,9 1.185,2
32,6
1,2

53,7
2,7

0,6
0,0
19,4
9,7
0,0
0,0
0,0
22,6
976,8
23,4
6,8

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

52,7

21,8

27,3

42,6

33,8

0,0
52,7

0,0
21,8

0,0
27,3

0,0
42,6

0,0
33,8

970,3 1.235,8 1.808,9 1.368,8
189,1
178,1
13,8
18,4

221,0
12,2

173,7
14,1

TOTAL
TOTAL MANUFACTURING
% of total

1.263,9
464,9
36,8

110077

Table A6/14
Total state aid 1994 - 1998

SWEDEN

in million euro

SECTOR / FUNCTION

1995

1996

1997

1998

1.1. Agriculture (See EU 15)
1.2. Fisheries

7,7

9,2

9,1

9,0

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and Culture
-Tourism
-Financial Services

1848,5

1575,0

1185,9

1341,2

557,7

337,1

171,9

230,3

34,5
6,4
59,5
0,0
7,1
374,1
75,4
0,6

39,4
16,1
50,2
0,0
13,6
151,1
65,3
1,3

32,1
19,2
59,4
0,0
11,4
27,5
22,0
0,3

30,0
102,7
58,8
0,0
16,3
5,2
17,4
0,0

1.290,8 1.237,9 1.014,0 1.110,9

0,0
0,0

0,0
0,0
1.213,8 1.166,6
78,3
0,0
0,0
0,0
0,0
71,3
0,0
0,0

0,0
0,0
0,0
0,0
0,0
77,0
0,0
0,0

0,0
0,0

0,0
0,0
921,0 1.016,0
59,1 1.016,0
0,0
0,0
0,0
0,0
94,9
0,0
0,0

0,0
0,0
0,0
0,0
93,0
0,0
0,0

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

218,7

212,8

187,8

180,8

218,7
0,0

212,8
0,0

187,8
0,0

180,8
0,0

2.074,8 1.797,0 1.382,8 1.531,0
388,5
25,4

326,8
15,8

333,5
18,6

310,2
22,4

TOTAL
TOTAL MANUFACTURING
% of total

110088

Table A6/15
Total state aid 1994 - 1998

UNITED KINGDOM

in million euro

SECTOR / FUNCTION

1994

1995

1996

1997

1998

1.1. Agriculture (See EU 15)
1.2. Fisheries

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and Culture
-Tourism
-Financial Services

28,6

30,5

31,4

32,6

31,9

3276,5

5640,7

6013,3

4197,7

4706,8

482,9

517,3 2.126,7

762,5

569,9

272,6
1,9
139,2
68,4
0,0
0,0
0,8
0,0

216,3
253,1
1,3
1,7
315,8
150,9
97,4
109,7
1,4
1,5
0,0
0,0
0,3 1.494,5
0,0
0,0

149,9
1,4
315,7
94,8
22,7
0,0
178,0
0,0

100,6
9,6
269,4
85,3
21,2
0,0
83,9
0,0

2.793,6 5.123,4 3.886,5 3.435,2 4.136,9

0,0
2,8

0,0
8,9

0,0
4,9

0,0
19,4

0,0
24,6

0,0
9,9
1.536,4 2.808,7 3.017,7 2.703,1 2.619,1
1.478,1 2.751,3 2.476,4 2.630,6 2.562,2
0,0
0,0
469,0 1.257,6
0,0
241,4
9,0
0,0

0,0
0,0
1.063,8 2.066,8
0,0
218,1
10,5
0,0

0,0
0,0
619,2
0,0
227,9
12,8
0,0

6,6
240,0
11,6
0,0

0,0
157,9
8,2
0,0

0,0
0,0

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

683,2

845,7

883,5

920,4

825,1

604,3
78,8

532,6
313,1

684,7
198,8

677,4
243,0

564,1
261,1

3.988,3 6.517,0 6.928,2 5.150,8 5.563,8
1.168,1 1.382,1 1.524,7 1.516,5 1.321,0
23,7

29,3

21,2

22,0

29,4

TOTAL
TOTAL MANUFACTURING
% of total

110099

Table A6/16
Total state aid 1994 - 1998

EU 15

in million euro

SECTOR / FUNCTION

1994

1995

1996

1997

1998

1.1. Agriculture
1.2. Fisheries

12215,8
313,4

13233,8 14669,4 12714,0 12634,1
296,9

244,5

237,7

317,9

66147,4

66373,8 64642,3 59761,9 57703,0

12.200,3

12.654,4 15.343,7 12.889,7 12.498,8

3.440,8
473,8
2.461,8
1.349,1
840,4
529,5
254,4
2.850,4

3.522,5
506,1
2.703,6
1.094,1
959,1
1.070,6
388,8
2.409,6

3.968,9
536,7
3.052,4
711,9
835,9
1.359,5
1.819,2
3.059,3

3.776,8
544,3
2.970,3
518,6
844,5
460,7
483,6
3.290,9

3.427,8
732,1
2.611,0
347,1
840,2
2.427,3
397,7
1.715,5

53.947,1

53.719,4 49.298,5 46.872,2 45.204,2

2.474,1
1.116,2
36.825,5
8.745,1
2.425,0
8.890,7
2.106,1
924,4
640,3
322,8
646,8

1.695,1
1.864,0

417,6
1.673,3

321,4
1.557,4

39,6
1.416,2
37.177,3 34.121,6 31.858,0 30.600,7
10.659,7 10.301,6 10.761,2 11.630,9
295,0
4.990,7
2.162,3
640,4
1.641,6
194,8
3.517,8

1.634,9
5.623,6
1.244,8
648,7
2.075,9
201,2
3.341,3

1.394,9
6.098,4
1.562,7
942,2
1.201,9
290,2
2.990,6

2.370,6
5.524,4
3.054,5
1.058,8
804,6
302,5
2.238,2

24.410,1

23.802,0 19.287,2 19.257,3 17.931,5

2.365,6
21.441,9

2.681,3

3.828,8
20.920,5 16.042,4 15.443,3 14.057,8

3.106,5

3.734,5

103.086,6 103.727,5 98.836,6 91.977,7 88.565,6
39.614,8 34.485,5 33.730,2 29.701,6
33,5

40.341,2
39,1

36,7

38,2

34,9

2. Manufacturing / Services
of which:

2.1. Horizontal Objectives
of which:

-Research and Development
-Environment
-SME
-Trade
-Energy saving
-Employment aid
-Training aid
-Other Objectives

2.2. Particular Sectors
of which:

-Steel
-Shipbuilding
-Transports
of which -Regulations 1191/69

-Airline Services

-Coal: -Aid to current production

-Other aid

-Other manufacturing sectors
-Media and Culture
-Tourism
-Financial Services

3. Regional Aid
of which

3.1. Regions under 87(3)c
3.2. Regions under 87(3)a

TOTAL
TOTAL MANUFACTURING
% of total

111100

ANNEX III

COMMUNITY FUNDS AND INSTRUMENTS

111111

I. Community Funds, Instruments and Programmes and ECSC operations

Tables are presented in this annex in order to show the volume of support
granted by way of the main Community and ECSC operations during the
period from 1994 to 1998. Community-wide support for general infrastructure
granted by way of
for External policies and the
administrative costs of the Institutions are not included.

the ERDF, support

As the economic effect resulting from the grant of National State aid described
earlier in this Survey, (i.e. aid financed by national budgets and tax systems) is
not necessarily the same as that of Community interventions, a direct
comparison between the two cannot always be made.

In the agricultural sector for example, making comparisons could result in
erroneous conclusions being drawn owing to the fact that those who benefit
from Community intervention are for the most part not firms. As regards
comparison between the different Member States, the benefits of Community
intervention are felt by all operators in the Union irrespective of where the
expenditure (i.e. export refunds or intervention buying) took place. As to
comparison between Community and national expenditure, expenditure by the
Union is strongly influenced by the differences between fluctuating world
prices and Community prices for agricultural products, which is not the case
with most national expenditure.

For the first
time since 1988, when the First Survey on State aid was
published, the gradually decreasing total of National State aid notified to and
approved by the Commission dropped below the level of the Community’s
own budget in 1998.

A brief description of the main ECSC operations and Community funds,
instruments and programmes that account
the
Community budget is given below. Detailed information is available in the
respective annual reports published by the European Commission and listed
under point 5.

two-thirds of

for about

Structural Operations

the Edinburgh European Council,

In July 1993 the second reform of the Structural Funds (EAGGF-Guidance,
In accordance with the
ERDF, Social Fund, FIFG) was agreed upon.
the
the resources of
conclusions of
Structural Funds allocated to four Member States eligible for assistance from
the Cohesion Fund (Greece, Spain, Ireland and Portugal) were doubled in real
terms between 1992 and 1999 and total funding for the Structural Funds over
the period 1994-99 increased to EUR 141 471 million (at 1992 prices). A new
instrument was also introduced with the entry into operation in 1994 of the
FIFG to provide support for the restructuring of the fisheries sector.

The Commission’s proposal for regulations governing the Structural Funds for
the period 2000-2006 have now been accepted. These proposals set out in

111122

detail the guidelines that the Commission unveiled in its strategy document
“Agenda 2000 – for a stronger and wider Union”, published in July 1997. The
proposed reform of the Structural Funds is centred on three priorities: a greater
concentration of assistance, a decentralised and simplified implementation of
the Structural Funds and a strengthening of their efficiency and control.

-EAGGF Guarantee

important

The Guarantee Section of the European Agricultural Guidance and Guarantee
Fund finances market-support and price-support operations under the common
It
agricultural policy (CAP) and a number of other agricultural measures.
represents the most
in terms of budget expenditure
sector
( 40 440 million euro in 1999, or 49% of the general budget of the European
Union).
Between its establishment and until 1992, the CAP provided a straightforward
general system of support for the main agricultural sectors, for which common
market organisations were set up. In most cases, the legal framework for each
common market organisation provided indirect income support for producers
by maintaining market prices through:

– protection at the Community's external frontiers [threshold prices and other
minimum import prices, backed up by differing levels of import levies for
non-Community products with what were, generally speaking, much lower
(world) prices];

– payment of export refunds for products exported to third-country markets,
their purpose being to narrow the gap between the Community market price
and the external market price, which was normally lower;

– adoption of public storage measures, with the Community undertaking to
purchase unsold surpluses at a pre-determined intervention price and thereby
setting a genuine minimum market price.

In the absence of self-sufficiency, this system of indirect support proved to be
less complex and burdensome than a system of direct aid for producers since
payments were made only to traders that exported or sold at the intervention
price, covering only that part of total production that could not be sold within
the Community at the market price. Even better, if production could be
disposed of on the internal market at a price higher than the intervention price,
there was no need for any refunds or intervention by the authorities.

The 1983-86 budget crisis (expenditure covered by the EAGGF Guarantee
Fund having increased from 3 927 million euro in 1973 to 15 786 million euro
in 1983 before surging by another 40% to 22 119 million euro in 1986) was
caused by the growing gap between the consumption and supply of
agricultural products, which widened
of
modernisation and technological progress, but also by the accession of six new
Member States and the setting-up of new common market organisations.
It
made essential the adoption of stabilisation mechanisms and put an end to
unlimited support for the main agricultural sectors.

further under

impact

the

111133

The 1992 CAP reform was a very important turning-point as regards the type
of assistance provided by the EAGGF Guarantee Fund: in part, support was no
longer linked to production in certain important agricultural sectors (cereals
and beef). The traditional market-support operations were relaxed by reducing
institutional prices and, as a result, bringing about lower prices on the internal
market, with these being offset by the introduction of direct payments to
producers - subject to ceilings - according to the areas under cultivation or the
In addition,
number of head of
accompanying measures (afforestation, early retirement and agri-environment)
were introduced; these measures are financed by the EAGGF Guarantee Fund.

livestock being reared or

fattened.

The "Agenda 2000" decision represents a continuation and deepening after
1999 of the reform set in train in 1992. The accession of new Member States
whose wealth is relative but whose agricultural sector is quite large, coupled
with the need to make European agriculture more competitive (particularly as
regards arable crops and livestock production), if only in response to the
pressure being exerted by the Community's trading partners within the World
Trade Organisation, makes it urgent to reduce traditional support (especially
export refunds and intervention buying) by way of a further reduction in prices
accompanied once again by some measure of compensation in the form of
direct payments to producers. Lastly, in line with the accompanying measures
introduced in 1992, all rural development measures not covered by Objective 1
programmes will be brought together within a single framework and their
financing transferred to the EAGGF Guarantee Fund. Such a transfer will
reinforce the multifunctional nature of agriculture and of its financing by the
EAGGF Guarantee Fund.

-EAGGF-Guidance

The EAGFF-Guidance intervenes by co-financing structural measures in the
framework of programmes, which have been established with the Member
States and Regional authorities for:

-

-

-

-

the strengthening and reorganisation of agricultural and forestry
structures,
the processing and marketing of
products;

including those for

compensation for the effects of natural handicaps on agriculture;

the re-conversion of agricultural production and the development of
additional activities for farmers;

the development of the social fabric of rural areas and the conservation
of natural resources.

The actions co-financed in areas covered by objectives 1 and 5b relate in
particular to:

-

the conversion, diversification, reorientation and adjustment of the
agricultural production potential;

111144

the promotion, labelling and investment of quality products for local or
regional agricultural and forestry;

the development of structures and rural infrastructures;

measures to achieve diversification, especially those providing for
farmers to develop multiple activities;

the renovation and development of villages and the protection and
conservation of the rural heritage;

encouragement for tourist and craft investment;

the introduction of appropriate preventive instruments in the case of
natural catastrophes (in particular in objective 1 regions) restoring
agricultural and forestry production potential damaged by natural
disasters;

the irrigation, protection of
landscapes;

the environment, and restoration of

exploiting the full value of forests;

development of agricultural and forestry advisory services and
vocational training.

-

-

-

-

-

-

-

-

-

-FIFG

Structural assistance for the fishing industry was first granted as far back as
1971, the year in which it was agreed to use funds from the Guidance Section
of the European Agricultural Guidance and Guarantee Fund (EAGGF) to
encourage the construction and modernisation of inshore and pelagic fishing
vessels together with the processing and marketing of fish. In 1978 the original
rules were replaced by a series of annual interim measures widened in scope to
encompass the restructuring of the inshore fleet and the development of
aquaculture.

In 1983 a comprehensive system of multi-annual programmes was put into
effect, based around schemes under which aid could be granted for
restructuring the industry and conversion of fishing activities. In 1986 the need
to reinforce this approach resulted in the whole range of structural measures
for modernisation of the fleet and marine aquaculture being grouped together
in a single regulatory framework.

Schemes designed to assist the processing and marketing of fishery products
developed from a different source, which was shared with the structural policy
for processing and marketing of agricultural products. For a long time, one and
the same Regulation covered the processing and marketing of both types of
products. However, in order to ensure that better account was taken of the

111155

in 1989;
specific requirements of the fisheries sector, the two were split
assistance for the processing and marketing of fishery products has since had
its own rules, integrated from that date into the Community's Structural Funds
arrangements.

In 1993 the structural elements of the Common Fisheries Policy (CFP) were
overhauled and three major changes were introduced. This ensured greater
coherence between different aspects of the policy, removed the partition which
had divided the CFP from other Community activities and, took account of the
changes affecting the sector. The CFP's structural measures were integrated
into the Community's system of structural funds when these were reformed in
1993. Moreover the different finances available for fisheries were regrouped in
one fund known as the Financial Instrument for Fisheries Guidance (FIFG).
This Instrument had to combine two objectives: to contribute to the aims of the
CFP while playing its part in strengthening economic and social cohesion.
Under the FIFG financing was made available for structural measures in
catching, marketing, processing and aquaculture sectors,
the creation of
protected marine zones in coastal waters and the development of port
facilities. Modernisation and the elimination of excess capacity went hand in
hand. Other activities such as the promotion and identification of new markets
and social measures also benefit from support.

A proposal for a new Council Regulation about the structural interventions in
the fisheries sector (COM (1998) 728 of 16 December 1998) has been
discussed three times at the level of Ministers.
The debate is now mature for a political decision to be taken.

-Social Fund

The objectives of the Social Fund are to improve employment opportunities
for young people (under the age of 25) and for other groups deemed to be in
need of support (long-term unemployed, the handicapped, migrant workers
and other socially disadvantaged groups). The Fund therefore contributes to
the financing of operations carried out by the public or private operators in the
following areas:

-
-
-
-

the prevention of long term unemployment;
vocational training;
technical advice concerned with job creation;
facilitate the adaptation of workers to industrial changes and changes
in production system.

All applications for assistance are submitted through the Member States.
Money from the Social Fund is paid out on a horizontal and not on a sectorial
basis, so an extrapolation corresponding to the concept of aid within the
meaning of Article 87 of the Treaty is not possible.

111166

-Regional Fund

The European Regional Development Fund (ERDF) aims to reduce disparities
within the Community by providing financial support to:

-
-
-
-

regions whose development is lagging behind (Objective 1);
regions in industrial decline (Objective 2);
rural problem areas (Objective 5b);
the development of regions with an extremely low population density
(Objective 6).

This support
productive investment.

is focused mainly on infrastructure, human resources and

As ERDF aid is generally paid out on a horizontal and not on a sectorial basis,
identification of expenditure which corresponds to the concept of State aid
within the meaning of Article 87 of the Treaty is not always possible. As an
alternative, figures relating to the manufacturing sector and services and,
economic development have been retained; the data obtained by using this
approach therefore only provide an idea of the scale of ERDF aid involved.

-Cohesion Financial Instrument - Cohesion Fund

After the principle of the Cohesion Fund had been incorporated into the
Maastricht Treaty, the Edinburgh European Council decided to establish the
instrument provided Community
Cohesion Financial
financial support to the beneficiary Member States from 1993 prior to entry
into force of the Treaty which then permitted the establishment of the
Cohesion Fund in May 1994.

Instrument. This

The Commission adopted the proposal for a Regulation establishing the
cohesion financial instrument based on Article 308 of the Treaty which was
subsequently adopted by Council on 30/04/1993 and extended until the end of
1994.

The Cohesion Fund was established by Article 161 of the EC Treaty and
represented a further stage in the policy of solidarity initiated mainly through
the Structural Funds. This Fund makes its own specific and complementary
contribution since it is grounded principally in the requirements stemming
from the prospect of economic and monetary union (which is already starting
to become a reality). From the outset the Fund has created its own identity on
the basis of three major principles.

The first is its limited field of implementation: the protocol on economic and
social cohesion states that
the Cohesion Fund “will provide Community
financial contributions to Member States with a per capita GNP of less than
90% of the Community average.”

Secondly, assistance is restricted to the part financing of projects in the fields
of the environment and Trans-European transport networks.

111177

Thirdly, as a result of its links with the implementation of economic and
monetary union, the Fund assists Member States which have drawn up a
programme complying with the conditions on excessive public deficits as laid
down in Article 104.

In addition the Cohesion financial instrument and later (from May 1994)
Cohesion Fund, contributed towards the objective of cohesion. However given
that most of the credits available were devoted to infrastructure projects and
not productive investment, the figures are only presented for information
below in Table B.

Community Research and Technological Development (RTD)

The 4th Framework Programme for Research and technological development
and demonstration (FP4) was adopted in April 1994 for the period 1994-1998.
This Framework Programme includes all the Community activities in the field
is
of research,
13,215 billion euro. It has three major objectives overall:

technological development and demonstration. Its budget

-

-

-

strengthening Europe’s scientific and technological base and thereby
international competitiveness of
contribute to the development of
Community industry and promote the quality of the Community citizens’
life.
promote research activities deemed necessary for other Community
policies.
further
exploitation of Community research.

co-ordination

cooperation

improve

and

and

the

Community research activities are conducted essentially at two levels:

(I)

(II)

by shared cost actions with third parties ( including RTD projects and
thematic networks) and concerted actions (Indirect actions).
at the Joint Research Centre (Direct actions).

the Framework
The Research DG administers the indirect actions of
Programme together with Enterprise DG, Agriculture DG, Energy and
Transport DG,
Information Society DG and Fisheries DG. The main
participants in the RTD activities are from universities, research centres and
950 million
the manufacturing sector (including SMEs). Slightly more than
are allocated to support the Joint Research Centre.

€

111188

ECSC financial operations

Financial assistance is provided by the ECSC in the form of loans and grants.
The loans fall into three main categories:

-
-
-

industrial loans;
conversion loans;
loans for workers' housing

The fact that the financial institutions, which distribute the loans, are non-
profit making could be advantageous to the recipient of the loan but this
advantage is not considered as aid for the purposes of the Treaties. The
situation with regard to grants is different. Whilst interest subsidies (on loans)
would normally be considered as constituting aid, other measures, notably
payments of a social nature to former steel and coal sector workers, are less
likely to be considered as such.

In June 1994, in view of the expiry of the ECSC Treaty in July 2002, the
Commission readjusted its borrowing/lending policy under the Treaty. The
granting of new loans out of borrowed funds was gradually reduced and was
virtually nil
for certain exceptional cases covered by
government guarantees).

in 1997 (except

The financing of workers’ housing came to an end in 1998.

European Investment Bank

The mission of the Bank is to further the objectives of the European Union by
making long-term finance available for sound investment. Created by the
Treaty of Rome, shareholders are the Member States and the Board of
Governors is composed of the Finance Ministers of these States. To receive
support, projects and programmes must be viable in four fundamental areas:
economic, technical, environmental and financial. Through the Bank’s own
lending operations and ability to attract other financing, the range of funding
the Bank
is widened. Through the borrowing activities,
possibilities
contributes to the development of capital markets throughout the Union. The
Bank’s policies are established in close cooperation with the Member States
and the other
Institutions of the European Union. There is also close
cooperation with the business and banking sectors and the main international
organisations in the field.

111199

European Investment Fund

The European Investment Fund is a financial agency set up to provide
guarantees to support medium and long-term investment in two crucial areas
for the development of the European economy; Trans-European Networks
(TEN) and Small and Medium-Sized Enterprises. Established in June 1994,
the Fund is a new and unique partnership in which the European Investment
Bank and the European Union, through the Commission, cooperate with the
banks and financial
institutions of the Member States. By Commission
Directive dated 15 March 1994, it was granted Multilateral Development Bank
status.

The fundamental objective of the Fund is to draw more private capital into
infrastructure finance and to improve the flow of financial resources to the
small and medium business sector. It will do this by developing mechanisms
to transfer and share financial risk and will concentrate on the provision of
financial guarantees on medium and long-term lending by banks and other
financial institutions.

In addition to senior long-term debt for TEN projects it will be able to cover
private placements, bond issues, revenue or asset backed securities and
subordinated debt. For SME finance it can cover portfolios of loans, credit
lines and secured assets.

The EIF can also take equity participations in venture capital funds.

In fulfilling its mission the EIF acts, on a commercial basis, as a complement
to the banking sector and in co-ordination with other EU financial institutions
and instruments.

II. Statistical Data

1.

2.

3.

Table A sets out in global terms the financial intervention of the Community
for the years 1994 to 1998.

Table B shows other Community instruments granted for the years 1994 to
1998.

Tables C1 and C2 indicate, for the periods 1994-1996 and 1996-1998
respectively, the average annual volume of Community intervention broken
down by Member State wherever possible.

4.

Further details of Community Funds are given in the Technical Annex.

112200

5.

Further detailed information on Community Programmes, Funds and
Instruments can be found in the following documents:

-The Agricultural Situation in the European Union.

1996 Report
1997 Report
1998 Report

ISBN 92-827-9008-8
ISBN 92-828-2420-9
ISBN 92-828-5731-X

- Research and Technological Development Activities of the EU

Annual report 1995
Annual report 1996
Annual report 1997
Annual report 1998

- The Structural Funds
Annual report 1995
Annual report 1996
Annual report 1997
Annual report 1998

ISBN 92-77-93761-0
ISBN 92-78-08603-7
ISBN 92-78-23634-9
ISBN 92-78-38078-4

ISBN 92-78-10829-4
ISBN 92-78-26044-4
ISBN 92-78-39641-9
ISSN 0254-1491

- Cohesion Financial Instrument Cohesion Fund

Combined report 1993-1994
Annual report 1995
Annual report 1996
Annual report 1997
Annual report 1998

- ECSC Financial Report 1995
ECSC Financial Report 1996
ECSC Financial Report 1997
ECSC Financial Report 1998

- European Investment Bank

Annual report 1995
Annual report 1996
Annual report 1997
Annual report 1998

ISBN 92-827-5739-0
ISBN 92-827-9688-4
ISBN 92-827-8877-6
ISBN 92-78-39497-1
CB-CO-99-480 EN C

ISBN 92-827-7933-5
ISBN 92-828-0908-0
ISBN 92-828-3852-8
ISBN 92-828-7230-0

ISBN 92-827-6303
ISBN 92-827-9943-3
ISBN 92-828-3197-3
ISBN 92-828-5975-4

112211

Table A
Annual Community Expenditure

EAGGF Guarantee - Agriculture

EAGGF Guidance - Agriculture

EAGGF Guarantee - Fisheries

FIFG

SOCIAL FUND

REGIONAL FUND (1)

COHESION FUND

1994

1995

1996

Million current euro
1998

1997

33.376,8

34.463,3

39.073,7

40.641,5

38.748,0

3.335,4

3.609,0

3.934,5

4.129,0

4.366,9

35,5

403,5

39,2

480,7

34,1

475,1

33,5

390,4

21,2

502,4

5.580,4

4.382,9

7.145,8

7.533,6

8.858,6

1.899,6

1.871,9

2.261,3

2.501,7

2.676,7

1.853,1

2.151,7

2.443,7

2.748,7

2.870,7

EC R&TD FRAMEWORK PROGRAMME

2.018,6

2.983,7

3.153,5

3.485,6

3.499,3

ECSC Grants

Resettlement grants Art.56.2(b)

157,0

123,8

Steel social Art. 56.2(b)

Coal social Art. 56.2(b)

Research Art. 55

Interest relief Art. 54/56

TOTAL

86,0

40,0

52,0

51,5

41,3

40,0

61,4

11,4

56,3

0,0

23,2

85,0

36,7

66,0

43,1

-

29,0

84,0

1,8

-

-

26,8

84,0

48.889,4

50.260,2

58.722,9

61.644,8

61.697,7

(1) Part corresponding approximately to the concept of aid within the meaning of Article 87 of the
Treaty
1995 data include Austria, Finland and Sweden

112222

Table B
Other Community Instruments

Million euro

1994

1995

1996

1997

1998

ECSC (new loans issued)

European Investment Bank*

European Investment Fund**

673,4

17.656,0

643,0

402,8

18.603,0

1.441,0

279,7

20.946,0

1.465,0

541,2

22.958,0

2.239,0

20,5

25.116,0

2599

* Financing provided within the EU
** Guarantees approved since inception in 1994 (cumulative figure)

112233

Table C1
Community Average Annual Expenditure by Member State (1994-1996)

Million current euro

EC R&TD
Framework
Programme
*

EAGGF
Guarantee

EAGGF
Guidance

EAGGF
Guarantee
Fisheries

FIFG

SOCIAL
FUND

REGIONAL
FUND

COHESION
FUND

AUSTRIA
BELGIUM
DENMARK
GERMANY
GREECE
SPAIN
FINLAND
FRANCE
IRELAND
ITALY
LUXEMBOURG
NETHERLANDS
PORTUGAL
SWEDEN
UNITED KINGDOM
Technical Assistance

EC direct payments

649,2
1.312,5
1.334,6
5.535,7
2.657,6
4.332,3
354,7
8.633,1
1.529,5
3.681,1
15,3
1.793,6
683,3
347,4
3.118,2

110,4

110,2
41,7
29,4
771,1
352,8
649,7
106,1
498,0
198,9
381,8
6,7
24,2
390,8
45,0
106,9

0,2
6,6
0,3
0,7
6,9

12,0
2,8
0,5

0,1
3,2
2,3
2,3

1,0
9,5
27,5
35,8
21,4

64,5
108,0
50,2
960,0
283,4
176,7 1.310,1
52,9
656,8
313,7
400,5
4,3
175,9
511,3
42,1
822,4

13,6
33,3
8,2
39,2
0,4
9,7
34,4
22,4
31,1

1,4

4,06
18,4
4,4
212,0
244,9
553,8
39,8
160,8
76,0
248,3
0,6
15,2
285,4
8,5
173,9

386,1
1.181,5

193,3

387,0

1,5

TOTAL
*

36,3
It is not possible to effect a breakdown by Member State
For Austria, Finland and Sweden 2 year averages have been used

35.637,9

3.626,3

453,1 5.756,2

2.010,9

2.149,5

2.718,6
2.718,6

ECSC
GRANTS
*

TOTAL

828,9
1.490,3
1.452,6
7.514,9
3.946,8
8.211,1
567,1
9.994,0
2.322,4
4.751,4
27,3
2.018,7
2.295,4
467,7
4.254,8
1,5
111,8
288,5 3.007,1
288,5 52.677,2

112244

Table C2
Community Average Annual Expenditure by Member State (1996-1998)

EAGGF
Guarantee

EAGGF
Guidance

EAGGF
Guarantee
Fisheries

FIFG

SOCIAL
FUND

REGIONAL
FUND

COHESION
FUND

AUSTRIA
BELGIUM
DENMARK
GERMANY
GREECE
SPAIN
FINLAND
FRANCE
IRELAND
ITALY
LUXEMBOURG
NETHERLANDS
PORTUGAL
SWEDEN
UNITED KINGDOM
Technical Assistance
CE direct payments

971,1
989,7
1.244,4
5.791,9
2.701,1
4.640,4
597,2
9.228,7
1.787,3
4.490,2
19,9
1.554,9
643,3
711,6
4.059,1

111,6
38,9
24,6
790,5
347,3
802,8
110,2
586,6
216,3
587,1
5,9
16,4
377,6
46,9
79,0

57,0

1,9

0,0
0,2
4,5
0,0
0,0
6,2
0,0
9,1
2,0
0,0
0,0
0,1
3,4
1,1
3,0

104,7
135,5
59,6
1.246,6
316,4
1.540,7
91,6
746,0
433,6
964,4
4,6
216,8
770,7
107,6
1.107,5

0,0
8,5
20,2
31,8
29,9
195,8
1,7
25,2
12,2
44,6
0,0
6,2
42,1
1,7
34,8

1,4

11,3
34,1
4,8
319,1
285,6
509,8
45,4
219,2
82,5
369,2
0,8
21,7
321,4
36,6
218,4

482,7
1.477,5

241,9

483,6

1,9

TOTAL

39.487,7

4.143,5

29,6

456,0

7.846,0

2.479,9

2.687,7

3.379,5
3.379,5

*

It is not possible to effect a breakdown by Member State

112255

Million current euro

EC R&TD
Framework
Programme*

ECSC
GRANTS*

TOTAL

1.198,6
1.206,9
1.358,0
8.179,9
4.162,9
9.173,2
846,0
10.814,8
2.775,8
6.455,5
31,2
1.816,2
2.642,0
905,5
5.501,8
1,9
60,3
179,6
3.559,1
179,6 60.689,7