Ninth Survey on State Aid in the European Union.
Date: 2001-07-18
Institutions: European Commission
Subjects: EU statistics, European Union, State aid, aid policy, report

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 18.7.2001
COM (2001) 403 final

.

Ninth Survey on State Aid in the European Union

.

(presented by the Commission)

Ninth Survey on State Aid in the European Union

2

Contents

INTRODUCTION ................................................................................................................. 9

Background............................................................................................................................ 9

Conceptual remarks.............................................................................................................. 12

SUMMARY and CONCLUSIONS ...................................................................................... 15

Summary.............................................................................................................................. 15

Conclusions ......................................................................................................................... 18

Part I – OVERALL VOLUME OF NATIONAL AID IN THE COMMUNITY.................... 21

Part II – AID TO THE MANUFACTURING SECTOR ....................................................... 28

2.1.

2.2.

2.3.

Volume and trend of aid ......................................................................................... 28

Comparisons between Member States..................................................................... 28

Aid objectives......................................................................................................... 32

2.3.1. Overview................................................................................................................ 32

2.3.2. Changing trends - Horizontal Objectives ................................................................ 32

2.3.3. Changing trends – Aid for Particular Sectors .......................................................... 36

2.3.4. Changing trends – Regional Objectives .................................................................. 40

2.3.5.

Trends and Patterns of State aid in Member States.................................................. 44

2.4.

2.5.

Types of aid instrument .......................................................................................... 50

State aid given on an ad-hoc basis........................................................................... 54

Part III – AID TO AGRICULTURE..................................................................................... 58

Part IV – AID TO FISHERIES ............................................................................................ 60

Part V – AID TO COAL MINING ....................................................................................... 63

Part VI – AID TO THE TRANSPORT SECTOR................................................................. 67

6.1

6.2

6.3

6.4

6.5

6.6

Railways................................................................................................................. 68

Air transport sector................................................................................................. 69

Maritime transport.................................................................................................. 70

Inland waterways.................................................................................................... 70

Combined transport ................................................................................................ 70

Road transport ........................................................................................................ 71

3

Part VII – AID TO OTHER SERVICE SECTORS .............................................................. 73

7.1

7.2

Aid to the Financial Services Sector ....................................................................... 73

Aid to Tourism, Media and Culture ........................................................................ 75

Part VIII – AID FOR EMPLOYMENT AND TRAINING ................................................... 77

Part IX – A VIEW OF THE YEAR 2000 ............................................................................. 79

Part X – RETROSPECTIVE ................................................................................................ 81

10.1

10.2

Overview................................................................................................................ 81

Country analysis..................................................................................................... 84

Part XI - SERVICES - CHANGING PATTERNS IN STATE AID ...................................... 90

ANNEXES .......................................................................................................................... 91

ANNEX I Technical Annex ................................................................................................. 92

1.

2.

3.

4.

Scope of the Study - Fields excluded ...................................................................... 93

Categories, forms and objectives of aid................................................................... 94

Sources of data and methods of assessing the aid element....................................... 98

Specific issues ...................................................................................................... 101

ANNEX II Statistical Annex .............................................................................................. 102

ANNEX III ........................................................................................................................ 139

1.

2.

Community Funds, Instruments and Programmes and ECSC operations ............... 140

Statistical Data ..................................................................................................... 148

4

Tables and Figures

TABLES

Table 1 Overall national State aid in the Community - annual averages 1995-1997 and 1997-

1999 in constant prices (1998) ................................................................................ 21

Table 2 State aid per capita in the Member States - annual averages 1995-1997 and 1997-

1999 in constant prices (1998) ................................................................................ 22

Table 3 Overall national aid in the Member States in percent of GDP, in Euro per person

employed and in percent of government expenditure 1995-1997 and 1997-1999 in
constant prices (1998)............................................................................................. 23

Table 4 Overall national aid in the Member States - breakdown according to main sectors

1995-1997 and 1997-1999 ...................................................................................... 26

Table 5 State aid to the manufacturing sector in the Community - annual values 1995-1999 in
constant prices (1998)............................................................................................. 28

Table 6 State aid to the manufacturing sector in the Community - annual values 1995-1999 in
constant prices (1998)............................................................................................. 28

Table 7 State aid to the manufacturing sector in the Member States - annual averages 1995-

1997 and 1997-1999 in constant prices (1998)........................................................ 29

Table 8 State aid to the manufacturing sector in the Member States - breakdown by main

objectives 1995-1997 and 1997-1999 ..................................................................... 33

Table 9 State aid for CO2 emission tax schemes 1995-1999................................................. 35

Table 10 State aid for foreign direct investment carried out by SMEs 1995-1999 ................. 36

Table 11 Aid to the Shipbuilding sector ............................................................................... 37

Table 12 Aid to shipbuilding in the Member States in percent of contract value of ships 1997-
1999 ....................................................................................................................... 38

Table 13 Shipbuilding development aid 1995-1999 as approved by the Commission............ 39

Table 14 Shipbuilding – total number of new ships supported by State aid 1995-1999 ......... 39

Table 15 State aid approved to the motor vehicle sector 1995-1999 (not including cases below
the notification ceilings) ......................................................................................... 40

Table 16 Regional aid per eligible capita in Euro and regional aid as a percentage of total

GDP ....................................................................................................................... 42

Table 17 Absolute levels of State aid granted directly by or specifically aimed at the

outermost regions of the Union............................................................................... 44

Table 18 State aid granted directly by or specifically aimed at the outermost regions of the

Union expressed as a percentage of the respective regions’ GDP ............................ 44

Table 19 State aid to the manufacturing sector in the Member States - breakdown according to
sector and function 1995-1997................................................................................ 48

5

Table 20 State aid to the manufacturing sector in the Member States- breakdown according to
sector and function 1997-1999................................................................................ 49

Table 21 State aid to the manufacturing sector in the Member States - breakdown according to
type of aid instrument 1997-1999 ........................................................................... 50

Table 22 State aid on an-hoc basis awarded in manufacturing (including Treuhand), and

services sectors in the Community 1993-1999 ........................................................ 56

Table 23 State aid on an-hoc basis awarded in the manufacturing (including Treuhand), and

services sectors in the Member States - annual averages 1995-1997 and 1997-1999 57

Table 24 State aid to Agriculture in the Member States in percent of GDP, annual averages

1995-1997 and 1997-1999 ...................................................................................... 59

Table 25 State aid to fisheries in the Member States in percent of value added in this sector,

calculated on the basis of quantities landed and average prices- annual averages
1995-1997 and 1997-1999 in constant prices (1998)............................................... 62

Table 26 Community interventions in the fisheries sector in the framework of the common

organisation of the market and structural policy 1995-1999 .................................... 62

Table 27 State aid to coal mining 1995-1997 and 1997-1999 in constant prices (1998) ........ 66

Table 28 State aid to railways in the Member States in percent of value added in inland

transport services 1995-1997 and 1997-1999 .......................................................... 69

Table 29 State aid to the transport sector in the Community - annual values 1995-1999 ....... 72

Table 30 State aid to the financial services sector in the Community - annual values 1995-

1999 ....................................................................................................................... 74

Table 31 State aid to tourism, media and culture in the Member States by way of specific

programmes 1995-1997 and 1997-1999.................................................................. 76

Table 32 State aid for Employment and Training in the Member States by way of specific

programmes 1995-1997 and 1997-1999.................................................................. 78

Table 33 Ad hoc cases by Member State in 2000.................................................................. 79

Table 34 Ad Hoc cases by sector in 2000 ............................................................................. 79

Table 35 Ad hoc cases by objective in 2000 ......................................................................... 80

6

STATISTICAL ANNEX

Table A1: State aid to the manufacturing sector in current prices 1995-1999- (in national

currency) .............................................................................................................. 103

Table A2: State aid to the manufacturing sector in current prices 1995-1999- (in euro) ...... 104

Table A3: State aid to the manufacturing sector in constant prices 1995-1999- (in euro) .... 105

Table A4: German State aid to the new Bundesländer – yearly average 1997-1999 ............ 106

Table A5/1-15: Total State aid by Member State – annual average 1997-1999 ................... 107

Table A5/16: Total State aid in the EU – annual average 1997-1999 .................................. 122

Table A6/1-15: Total State aid by Member State – annual figures 1995-1999..................... 123

Table A6/16: Total State aid in the EU – annual figures 1995-1999.................................... 138

COMMUNITY FUNDS AND INSTRUMENTS

Table A: Annual Community expenditure 1995-1999 ........................................................ 150

Table B: Other Community instruments 1995-1999 ........................................................... 150

Table C: Community average annual expenditure by Member State 1995-1997 ................. 151

Table D: Community average annual expenditure by Member State 1997-1999 ................. 151

7

FIGURES

Figure 1 State aid as a percentage of overall EU GDP .......................................................... 24

Figure 2 State aid as a percentage of overall EU GDP of aided sectors ................................. 24

Figure 3 State aid as a percentage of National GDP in 1995-1997 and 1997-1999 ................ 25

Figure 4 Overall State aid in Member States broken down to main sectors averages 1995 -

1997 and 1997 - 1999 ............................................................................................. 27

Figure 5 State aid to the manufacturing sector in the Member States as a percentage of value

added. Annual averages 1995-1997 and 1997-1999 ................................................ 31

Figure 6 Aid for R&D, SMEs, environmental protection and energy saving in the Member

States - as a percentage of aid to manufacturing 1995-1997 and 1997-1999 ............ 34

Figure 7 Regional aid as a percentage of national GDP ........................................................ 41

Figure 8 State aid to the manufacturing sector in the Member States - distribution by

budgetary expenditure and tax foregone 1997-1999................................................ 51

Figure 9 State aid to manufacturing –– percentage share by aid instrument 1991-1999......... 52

Figure 9 continued, State aid to manufacturing – percentage share by aid instrument 1991-

1999 ....................................................................................................................... 53

Figure 10 Overall State aid in the European Union 1990-1999 ............................................. 81

Figure 11 The shares of overall State aid directed towards Agriculture and Fisheries,

Manufacturing, Rail Transport, Coal and other aided sectors 1990-1999 ................ 82

Figure 12 Share of Aid for Horizontal objectives, particular sectors and regional development
granted to the manufacturing sector 1990-1999 ...................................................... 82

Figure 13 Share of horizontal aid objectives as a proportion of all horizontal aid.................. 83

Figure 14 State aid to services, other than rail transport, in the EU ....................................... 83

Figure 15 Total National and EU State aid as percentage of National GDP and EU GDP ..... 88

8

INTRODUCTION

Background

1.

2.

3.

4.

5.

Community Competition Policy is one of the pillars upon which the action of the
European Commission in the economic field rests. This action is inspired by the
principle laid down in the Treaty, of “an open market economy with free
competition”. The Treaty thus acknowledges the fundamental role of the market and
in encouraging the optimal
of competition in guaranteeing consumer welfare,
allocation of resources and, in providing the appropriate incentives for the pursuit of
productive efficiency, quality and innovation. By way of this policy therefore, the
Commission seeks to reinforce the growth and competitiveness of European industry
by ensuring effective competition in the Internal market and creating 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 posing a threat to the unity of the Internal
market. In many cases, the granting of State aid reduces economic welfare and
weakens the incentives for firms to improve efficiency. Aid also enables the less
efficient to survive at the expense of the more efficient. In addition to creating
distortions within the Internal market, the grant of State aid can affect trade between
the EU and third countries thereby encouraging them to adopt retaliatory measures
that 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
reducing all of these inefficiencies. Based on an agreed set of rules firmly anchored
in the European Treaties, this system of control makes an important contribution
towards fully realising the benefits of the Internal market and economic and
monetary union.

However whilst the Internal market and economic and monetary union offer new
possibilities to European industry, both contribute to the fundamental changes that
are taking place in the environment where this industry operates. These changes are
driven not only by developments for which the Community is the instigator, but also
by external factors such as the changing nature of globalisation and the growing
opportunities and challenges offered by the markets on which Europe depends.
Europe’s economy has in the course of the past two decades undergone significant
change and it is now on the threshold of further transformation. The process of
economic integration continues apace and even before the Candidate countries
actually become Members of the European Union, the degree of integration between
them, as indeed between other countries that comprised the former USSR and the
Union, is increasing at an unprecedented rate.

Accompanying this process of economic integration has been an unparalleled process
of deregulation or liberalisation of industries that previously were in the national
domain. As examples we have airlines, power generation and telecommunications.
The liberalisation of these sectors has opened them up to greater competition within
and from outside the European Union.

In parallel with the structural changes that have resulted from liberalisation, we are
witnesses to changes in behaviour. Given the Internet and the global awareness it

9

engenders, compounded with the removal of the many cross-border obstacles that
existed hitherto, the most dynamic, innovative and profitable activities are becoming
even more mobile than in years past. The drive for optimal use of global resources is
becoming unstoppable. Political priorities have also changed. Finding expression in
the Amsterdam Treaty they have for example increased the emphasis on
environmental protection and employment. The issues that now confront
the
Commission and Member States in the development of State aid control policy and
State aid policies are therefore becoming more exacting.

it

is recognised that Community or government

When market failures caused not least by this changing environment are being
addressed,
intervention can be
justified. For example such intervention may be used to mitigate the effects of
undesirable market outcomes regarding resource allocation or income distribution.
Moreover intervention might also be required either to reinforce policies that would
not be sustained by market forces alone or, provide services that bring positive
external benefits beyond their market value. Nevertheless, if such interventions do
take the form of State aid, State aid control will attempt to ensure that the distortive
effects on competition by each individual aid proposal, is minimised. And although a
basis for addressing the cumulative distortive effect of the high levels of State aid in
some sectors was not provided for under the Treaties, over the years State aid control
has been instrumental in attenuating many of the worst symptoms of State aid.

However at the European Council Summits in Lisbon and then in Stockholm, the
necessary political impetus was given to address the root cause. It was recognised
that in order for Europe to be capable of sustainable economic growth, with more and
better jobs and greater social cohesion,
it will be necessary to improve its
competitive position not only by ensuring that European society itself is both
dynamic and knowledge-based, but also by reducing levels of State aid. The overall
strategic goal is being supported by a series of measures1, but it is in the context of
the economic reform process that the importance of State aid control and reduction of
State aid levels is found.

Nevertheless outside of the economic reform process, the rational for State aid
control and the use of State aid is more than just contributing to the competitiveness
of European industry. It is essential that sound State aid control and the judicious use
of state resources lead for example to the reduction in the disparities between
prosperous regions and regions where there is either a concentration of crisis-ridden
sectors or indeed no jobs at all. The risk of polarization may be relatively high in
Western Europe given that the mobility of labour is relatively lower than in many of
our main trading partners’ regions. To avoid the entrenchment of poverty, social
mobility must either match the movement of capital or regions must be supported in
the development of their own comparative advantages and by doing so, create
employment.

An information society for all ; Establishing a European Area of Research and Innovation ; Creating a
friendly environment for starting up and developing innovative businesses, especially SMEs; Economic
reforms for a complete and fully operational
internal market ; Efficient and integrated financial
markets ; Co-ordinating macro-economic policies: fiscal consolidation, quality and sustainability of
public finances ; Education and training for living and working in the knowledge society ; More and
better jobs for Europe: developing an active employment policy ; Modernising social protection ;
Promoting social inclusion ;

10

6.

7.

8.

1

9.

10.

11.

12.

13.

In this context, investment in European economies is crucial and one measure of how
attractive is Europe to investors, is the level of inward foreign direct investment. It is
of concern that particularly in a few Member States, levels of FDI are below levels of
State aid and Community funding whilst in others FDI dwarfs such government
investment must be
support. Clearly in the pursuit of the Lisbon objectives,
encouraged and State aid, in tandem with other policies, should ensure that Europe
can offer a skilled and educated work force and a tax and regulatory environment
that encourages entrepreneurship. The effects of wage flexibility and the importance
of incentives for worker mobility should be investigated. There is a body of
theoretical work that is developing on whether firms should be encouraged to cluster.
This and other research should contribute to thinking on the evolution of State aid
policy. The difficulty is sometimes the development of creative policies that attract
new industries whilst providing the necessary accompanying investment in human
resources. As some industries decline, others need to be waiting in the wings to
provide new employment opportunities.

Member States have at their disposal a number of instruments to intervene on
markets and it is essential that the economically most efficient is used to achieve the
objective at hand. If State aid is considered as being the most appropriate instrument,
then its objectives should be sufficiently well defined so that it is possible to monitor
its effectiveness and compare its success with other types of intervention in order to
assess its efficiency. Monitoring and follow-up of State aid expenditure are therefore
essential components of national State aid policies and Community State aid control
policy.

A policy of transparency in the control and use of State aid should also accompany
monitoring and follow up. The publication of this Ninth Survey underlines the
continued commitment of the Commission and all Member States to this policy.
Compiling and publishing data on the amounts of 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 the respective aid policies of each
Member State.

As State aid policy in the European Union evolves,
it has to account for the
international context and, in particular, the multilateral obligations imposed by WTO
rules: the WTO Agreement on Agriculture and the WTO Agreement on Subsidies
and Countervailing Measures.

Bilateral agreements concluded with candidates for membership to the European
Union contain a clear obligation for them to abide by Community rules on the grant
of State aid. Full compliance with these rules is still needed, with transparency being
the first step that should be taken towards their enforcement. 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, consequently, be implemented at an early stage. This Survey continues to
provide an example of what we should expect in terms of transparency from these
and our other trading partners.

11

Conceptual remarks

14.

15.

16.

17.

18.

2

In order

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 years.2
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 the Survey on an annual basis. The Ninth
Survey, which covers the period from 1995 to 1999, is the third annual Survey.

Commission departments in close co-operation with Member States drew up the
figures used for this Survey. Historical data, upon which previous Surveys were
based, have been updated with figures for 1999. Historical data have also been
updated to account for reimbursement of incompatible aid and to include figures on
public support that, after investigation by the Commission, has been deemed as
constituting “non-notified” aid. In addition Member States have continued to verify
and, if necessary, modify historical data, thus ensuring that a relatively high degree
of reliance can be placed on the figures. For example the recent in-depth reviews by
the Italian and Swedish national authorities on their respective data, have contributed
to the reliability of the Survey.

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 scheme constituted State aid. As a result of this decision, levels of State
aid in Ireland have markedly increased when the period 1997-1999 is compared with
1995-1997, although this increase does not represent any voluntary change in the
Irish Government’s State aid policy.

State aid may be granted by way of State resources of any form. The notion of State
resources is very wide and covers not only the central budget of the State but all the
resources of the State including those foregone by way of State aid, for example, that
is granted by way of various tax benefits. In addition State resources comprise the
different administrative entities of the State, agencies that act on behalf of the State,
other para-State entities and may also include public-owned undertakings
irrespective of whether they are governed by public or private law. Advantages in
kind such as use of facilities made available by the State may also constitute State
aid.

State aid implies that certain economic sectors, regions or activities are treated more
favourably than others in order to promote economic activity. However the notion of

References:
COM (88) 945
COM (90) 1021
COM (92) 1116
COM (95) 365
COM (97) 170
COM (98) 417
COM (99) 148
COM (00) 205

12

State aid does not cover all types of state intervention to lower the cost of acquiring
certain goods or services. For example grants given to homebuyers may be of
indirect help to the building sector, but would not always be considered as distorting
competition and affecting trade between Member States and therefore, as being State
aid.

This Survey covers national State aid as defined under Article 87(1) EC Treaty3 that
is granted by the fifteen Member States and has been examined by the Commission.
Compensation granted in accordance with Article 86(2)4 to undertakings that
perform a public service obligation may, according to recent court decisions5,
constitute State aid. As a consequence, the procedural provisions in Article 88 apply
and in principle prior authorisation by the Commission is requested as of recently.
However, in the past Member States often failed to report on this type of State aid.
Only in the transport sector different rules have been applied following specific
obligations contained in Community legislation based on Articles 73 regarding land
in connection with 86(2), EC Treaty, regarding aviation and
transport and 80,
maritime transport. Rules on reporting exist in particular for compensation granted in
rail transport, compensating for its exemption from the notification procedure of
Article 88(3), which has not been affected by the recent Court rulings. Data
pertaining to public service obligations are therefore included in the Survey only for
rail transport but may sometimes (irretraceably) be contained in Commission State
aid decisions in the rare cases of aids being justified under Article 86(2). Financial
aspects of public air or sea transport services are for example dealt with under
Articles 86(2) but also 87(2)a as the case may be. General measures and public
subsidies that have no affect on trade and do not distort or threaten to distort
competition are not dealt with in the Survey as they are not subject
to the
Commission’s investigative powers.

The Commission has, by means of an exemption regulation, decided that certain aids
do not meet all the criteria of Article 87(1) and that they are therefore exempted from
the notification procedure provided for in Article 88(3) as long as aid granted to the
same undertaking over any period of three years does not exceed
100.000. Such De
minimis aid is not included in the Survey.

€

In future the Survey will include data on State aid granted by way of aid schemes and
ad-hoc aid that is exempted from notification under the group exemption regulations.
Currently two such exemption regulations have been adopted, one for training aid6
and another for State aid to small and medium-sized enterprises7. In both cases,
Member States are obliged to provide annual reports on State aid that is granted

Save as otherwise provided in this Treaty, any aid granted by a Member State or through State
resources in any form whatsoever which distorts or threatens to distort competition by favouring certain
undertakings or the production of certain goods shall, insofar as it affects trade between Member States,
be incompatible with the common market.
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 of competition, insofar as the application of such rules does not obstruct the
performance, in law or in fact, of the particular tasks assigned therein. The development of trade must
not be affected to such an extent as would be contrary to the interests of the Community.
See Court of First Instance cases: T-106/95; T-46/97 and C-332/98
Commission Regulation (EC) No 68/2001 of 12 January 2001
Commission Regulation (EC) No 70/2001 of 12 January 2001

13

19.

20.

21.

3

4

5

6

7

22.

23.

24.

25.

under the terms of these Commission Regulations. These data will be available for
analysis in 2002.

The principal objective of State aid is to resolve market failures in various economic
sectors, to support national, regional or Community policy objectives or reduce the
potential social cost of structural changes that are occurring throughout European
economies. The conditions under which aid may be granted are laid down in one or
more of the numerous EU rules that pertain to the control of State aid. In theory
therefore, a clear, unambiguous assessment of State aid levels may be carried out
from both a functional and rules-based point of view. In practice, the benefits that
accrue from an individual grant of aid often reflect the complexity of our economies
and are therefore associated with a juxtaposition of objectives and rules. For
example, aid granted in support of specific sectors may also be considered as
reinforcing regional and/or social objectives. On the other hand, aid granted under
regional aid rules can quite legitimately be used to support certain economic entities
such as SMEs or activities such as training or R&D.

Consequently and within the constraints imposed by the current, but continually
improving, degree of detail in the available data, this Survey presents an assessment
of levels of State aid from both the above vantage points. In keeping with previous
editions of the Survey, this edition concentrates its analysis on aid to manufacturing.
Moreover, given the continued importance of aid granted to further certain policy
aims such as R&D, SMEs, environmental protection and reductions in CO2 and other
the analysis that was introduced in the 8th Survey has been
emission gases,
maintained. Chapters on aid devoted to particular manufacturing sectors and
objectives have been reorganised and the chapter on aid instruments has been
extended. In addition, a short chapter has been added on certain trends that can
already be identified in the year 2000.

Aid granted to the agricultural, fisheries, coal and transport sectors is also reported
on, but given the lower level of detail currently available, information on the final
objectives of such aid and the aid instruments that are used is not highlighted.
However where new trends or policies have been identified then these are presented.
Given the growing importance of the service sector in the European economy,
Member States were asked to provide information on the service component of major
aid schemes that are open to many sectors. An overview of the data obtained from
three Member States is presented in this edition of the Survey and will be developed
for the whole of the EU in future.

When comparing patterns in the grant of national State aid between each Member
State, the analysis concentrates on the annual average over the current three-year
reporting period 1997-1999. Annual averages over this period are compared with
annual averages for the period 1995-1997 when trends in the grant of aid are being
analysed. Given that annual figures do not always allow for reliable conclusions to
be drawn on changing medium and long-term trends, these data are not generally
used for purposes of comparison. However where it is important to highlight rapid
changes, 1999 annual figures have been commented upon. For the first time an
historical overview is given on levels of State aid since 1990. Also for the first time
since the Fifth Survey, data on aid granted to the agricultural sector are broken down
by Member State.

14

26.

27.

In order to make the figures quoted in the Survey comparable all are expressed in
constant 1998 prices8.

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.

SUMMARY AND CONCLUSIONS

Summary

28.

29.

30.

The importance of the data analysis associated with the Survey is growing. It
contributes to improve transparency in the implementation by Member States of
Commission State aid decisions. Provisional data for 1999 were used to support
certain proposals that are included in Commission Recommendations for Broad
Economic Policy Guidelines and the recent Synthesis report that was presented at the
Stockholm European Council. Given therefore the changing context that surrounds
the Survey, Member States have responded to the Commission’s request to ensure
that the current as indeed the historical data they provide are as reliable as possible.

In the context of the commitments made by Member States at Stockholm, a selection
of data have been presented in a way that will provide information that might allow
more informed choices to be made with regard to State aid reductions and where
these reductions may be possible. In order to comply with the undertaking to
demonstrate a reduction in State aid by 2003, if ever State aid expenditure in 2000
and 2001 has increased, Member States will have to react very quickly in order to
ensure a downward trend in 2003. This edition of the Survey should provide some of
the information necessary if Member State expenditure plans need to be changed in
the near future.

The European Union is a service-driven economy. The commercial service sector
accounts for a large proportion of total GDP and this proportion is even larger when
social and public services are included. Given the importance of services, a growing
emphasis is being put on the analysis of aid granted in this sector and contingent
upon information provided by Member States, a more detailed picture of the trends
and patterns in the grant of aid will be presented in future.

Overall Results

31.

The results of the Survey show that overall levels of State aid in the European Union
have continued to fall. Moreover the disparities between Member States in the
resources allocated to national State aid are diminishing. The results also show that
the process of major restructuring in productive industries that took place in some
Member States during the 1990s is coming to a close. Restructuring of certain

8

Figures for national State aid to manufacturing in current prices are given in Annex II, the statistical
annex on national State aid.

15

32.

33.

34.

service industries such as airlines and finance also appears to be winding down
following the relatively recent liberalisation of these sectors.

€

102 billion during 1995-1997, to

90 billion during 1997-1999. Whilst

The overall level of national State aid in the EU has dropped from an annual average
€
of
the
decreases in aid to manufacturing, transport and agriculture contributed most to this
€
12 billion drop, decreases were also seen in levels of aid granted to the coal sector.
In contrast with the overall downward trend, when comparing the two reporting
periods, increases were seen in aid to fisheries and to the service sector. A full series
of data from 1995 to 1999 is not available for employment and training therefore a
comparison between these two periods cannot be made. However a comparison of
recent annual data shows that aid devoted to both of these objectives has increased
each year since 1997.

The level of State aid has decreased in every Member State except in Denmark,
Ireland, Luxembourg and the Netherlands. The marginal increase in Denmark is due
to substantial increases in aid that is now granted to combat unemployment and
support training in this country. The increase in Ireland is largely caused by the
inclusion of figures for Irish Corporation tax that has been considered as a State aid
only since 1998 combined with smaller increases in aid to agriculture and financial
services. In Luxembourg the rise is entirely due to the recent sharp, albeit temporary,
increase in subsidies paid for the additional investment in that country’s railway
network; a network that benefits communications between many Member States. In
the Netherlands the increase seen in aid granted to the agricultural and railway
sectors have more than outweighed decreases seen elsewhere. The two Member
States that have contributed most to the
12 billion decrease are, as in previous
5 billion
periods, Germany and Italy with reductions of almost
respectively.

6 billion and

€

€

€

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 1997-1999,
sector-specific aid is still relatively high in Belgium (railways), Germany (coal and
railways, but declining in absolute terms), Greece (railways), Spain (railways, coal
and shipbuilding) and France (railways and financial services). About one half of all
aid granted in Portugal is regional aid that is almost entirely directed towards the
service sector in the form of tax breaks.

Detailed findings and specific issues

35.

36.

The overall amount of aid granted to manufacturing throughout the Community,
calculated in real terms over 5 years from 1995 to 1999 confirm the findings of the
three previous Surveys where a peak in aid was observed in 1993. Since then there
has been a gradual decrease in the EU level of aid. Compared with the reporting
period from 1995 to 1997 when the annual average level of aid was
36 billion, the
annual average during the current reporting period is
28 billion. This decrease is
6 billion decrease between 1997 and 1998 was
encouraging especially as the annual
repeated between 1998 and 1999.

€

€

€

Whilst the overall total of aid granted to manufacturing decreased by ca. 23% from
3 billion
the previous to the current reporting period, this decrease is due to a
reduction in Germany and a
4 billion reduction in Italy. Smaller reductions are seen
in Belgium, Greece, Spain, Luxembourg, the Netherlands and the UK.

€

€

16

37.

38.

39.

40.

41.

42.

The three new Member States, Austria, Finland and Sweden contribute less than 4%
of total aid to manufacturing, however their current share represents an increase
compared with their less than 3% share only two years ago.

Disparities remain between Member States in their award of aid to the manufacturing
sector. The spread is sizeable when this aid is expressed in percent of value added:
the 4.3% level observed in Greece is over 7 times higher than the lowest aid level in
the European Union; 0.6% observed in the United Kingdom. The Member States
with the lowest levels of aid for manufacturing are the United Kingdom, Sweden,
Portugal and the Netherlands where aid levels are well below the EU average.

When disparities between 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 only increased from 9% of total aid to the manufacturing sector
during the pervious period to approximately 10% in 1997-1999. Furthermore this
increase is mainly due to the inclusion of data on an Irish Corporation tax scheme
that the Commission considers since 1998, as being a State aid. This aid scheme
accounts for approximately 1% of all manufacturing aid. By way of comparison, the
share of the four big economies, Germany, Italy, France and the United Kingdom, in
manufacturing aid has decreased from 82 to 79%. (Germany accounts for 36%, Italy
for 21%, France for 17% and the United Kingdom for 5% of the total.)

Insofar as the objectives pursued are concerned, the change in the shares of aid
granted to horizontal objectives, particular manufacturing sectors and assisted
regions has been relatively small. Variations have remained at less than 9% in most
Member States. The only countries where larger variations have been seen are
Belgium and Spain with considerable decreases in sectorial aid and Sweden where
the increase in aid to horizontal objectives matches the decrease in regional aid. At
the EU level, aid granted for horizontal objectives, inter alia, for the promotion of
research and development, for environmental protection and to support small and
medium-sized enterprises, accounts for 37%. The share of sectorial aid in overall
manufacturing aid has dropped to 7%. Overall the largest share of manufacturing aid
in the European Union, 56%, 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 EC Treaty. This share drops to 53% when the exceptional aid granted
by THA and its successors to the new German Bundesländer is not taken into
account.

As to the instruments used when aid is granted to the manufacturing sector at
Community level, budgetary expenditure is the preferred form with its share being
approximately 75%. However in comparison with tax forgone, the preference for the
instrument of budgetary expenditure is unequally distributed
more transparent
amongst Member States. Whereas in some countries practically all manufacturing aid
is given in the form of budgetary expenditure, in other countries, such as Denmark,
France and Ireland, over 35% of aid is given in the form of tax breaks.

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 transport sectors, a limited number of large
individual aids account for a disproportionate part of the total aid granted. Ad hoc
aid, which is granted mainly for rescue and restructuring of companies, is most prone

17

to distort competition. In the manufacturing sector, it increased in volume to 11%, of
total aid to this sector in 1994 before dropping back to 1,7% in 1999. If aid granted to
the new German Bundesländer via the Treuhandanstalt/BvS is added – such aid can
be considered similar to ad hoc aid – the share in overall aid to manufacturing
increased to 37% in 1994 and has subsequently fallen back to 4,7% in 1999.

Conclusions

43.

44.

45.

46.

47.

In a rapidly changing world an on-going review of State aid control policy is
necessary to ensure that it remains fair and equitable for Member States, industry and
consumers alike. The application of its basic principles must evolve to keep pace
with the fundamental changes that are taking place in the environment where
European industries operate and to underpin the evolution of industrial and social
policies.

The purpose of government intervention and in particular intervention that takes the
form of State aid, is to remedy the unwanted outcomes of market processes. However
not unlike any other form of government action, intervention by way of State aid has
to be constantly justified, critically examined and open to scrutiny. Apart from the
need to minimise distortion to competition, the grant of aid must also be balanced
against constraints on national public finances whilst in the European context the
grant of aid must be consistent with the framework of economic and monetary union
and the Stability and Growth pact. Public resources must be used restrictively and
efficiently.

In the European Union the need for fiscal discipline is recognised. The debate is over
what level of public goods and services should be supplied and the efficiency with
which they can be provided. This Survey deals with government intervention that is
apprehended under the concept of State aid as defined under article 87 of the EC
Treaty and is written in the full knowledge of the recent commitment by all Member
States to reduce levels of aid as a proportion of GDP.

In order to support Member States’ compliance with the commitment made in
Stockholm on the necessity to reduce levels of State aid, an instrument is needed that
transcend the objectives of this Survey. A much more detailed level of
will
monitoring and follow-up of State aid measures is needed. Moreover the experience
gained by 15 Member States in the implementation of national, regional and local
State aid policies needs to be shared. The complex dynamic of State aid policy and
other government interventions on markets and provision and cost of public goods
needs to be understood. In order to contribute to this ambitious undertaking, the first
version of a State aid Register of all Commission decisions pertaining to State aid
has already been opened on the Union’s Internet provider, EUROPA9. In the near
future a State aid Scoreboard will be published.

The objective of these new transparency instruments is threefold. Firstly they should
provide further the understanding of the Community’s State aid system and raise
awareness in the need for a central State aid control. They should also contribute to
the availability of information on the Commission’s decisional processes whilst
providing information on how Member States implement Commission decisions.

9

The State aid Register is found on: http://europa.eu.int/comm/competition/state_aid/register/

18

48.

49.

50.

Most importantly they must provide all Member States with a means to facilitate the
exchange of information and experience on their respective State aid policies. In this
way the Register and particularly the Scoreboard will provide a vehicle for
improving the process of analysis of the effectiveness and efficiency of State aid
measures with respect to other government measures that do not distort competition.
In the short term these two instruments will complement
information currently
provided by way of the Annual Surveys on State aid in the Union. At a later stage
they will replace the Surveys. The data provided by Member States will continue to
provide the statistical basis for these instruments and the economic indicators will
help to identify where and how reductions in State aid levels as a percentage of GDP
can be made.

The task of reducing State aid levels will not be easy. The greatest room for Member
States’ manoeuvre is certainly to be found in aid for particular manufacturing and
service sectors and that part of regional aid, very marginal in cohesion countries but
more important in the most prosperous Member States, that is not co-financed with
Community funds. As a matter of fact, the framework of the current structural fund
and therefore co-financing of Community support with national State aid has already
been defined until 2006. Furthermore, agreement on spending was also reached in
the areas of agriculture and fisheries until the year 2006. Finally, in addition to the
already fixed pattern of spending in the aforementioned areas, there are already
agreements on the reduction of volumes of aid to the coal industry until 2005.

Each Member State will find its own policy that best meets the Stockholm
commitment. And in providing the necessary data,
the Survey must facilitate
monitoring of the levels of aid by Member States and thus contribute to maintaining
continued budget discipline; a discipline that is required to provide the conditions for
a strong and durable expansion of investment, output and employment. Whilst the
declining amounts of State aid in most Member States presented in this Survey are
certainly also a reflection of this discipline, the cumulative level of aid reported are
still high. There may therefore still exist a margin for manoeuvre in regard to further
efforts to reduce State aid. The continued rigorous enforcement of the Community
State aid rules will support this process.

In parallel with the development of new transparency instruments, there is still a
need to address other more traditional issues. There is a continued need to maintain
an ongoing refinement of State aid control that currently 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. A new environmental protection framework has
been published10 and its impact on State aid levels will be closely followed up. A
revision of the current Multi-sectorial, Employment and R&D guidelines is ongoing
and rules on the provision of State aid to stimulate the provision of venture capital to
provide an important boost to the development of companies and employment have
been developed. Work also continues on identifying harmful tax measures in the
form of State aid.11

10

11

Community Guidelines on State aid for Environmental protection OJ C37 of 3.02.2001, p3.
Communication on the application of State aid rules to measures relating to direct business taxation OJ
C 384 of 10.12.1998, p3.

19

51.

52.

53.

54.

55.

Aid granted in the area of SMEs and Training, responding to strict criteria currently
have been approved by the Commission12, will be exempted from notification
requirements. Such group exemptions
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. An analysis of group exemptions
will be available in 2002.

should ensure

a

In July 2002, the ECSC Treaty will expire and with it the State aid rules that
currently regulate the granting 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. A decision will 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.

The Commission will also continue to monitor developments in newly liberalised
sectors so that the long-term competitive advantages gained from deregulation will
not be lost by the granting of subsidies to prop up loss-making activities. In
particular, increasing attention is being paid to the energy, telecommunications and
postal sectors. As these and other sectors enjoy a gradually increasing level of
deregulation,
the Commission must carefully assess government measures that
previously were not considered as constituting State aid, may in the wake of
deregulation acquire this characteristic. Such measures must be closely monitored
and if necessary, evaluated under State aid rules.

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 has hardly diminished. With a view to correcting
regional disparities, financial assistance is vital and its effectiveness must not be
compromised by the granting of disproportionate national State aid elsewhere. The
Commission will, insofar as is possible under current State aid control rules, continue
to reduce the cohesion gap.

The process of enlargement has continued apace. The establishment
in these
countries of a competitive environment such as 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
European Council. The Commission,
therefore, continues to follow closely the
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 should be achieved.

12

See reference to group exemption regulations on page 13.

20

PART I – OVERALL VOLUME OF NATIONAL AID IN THE COMMUNITY

56.

The overall volume of national State aid granted in the EU to the sectors covered by
this Survey is presented in Table 1. Amounting to an annual average of
90 billion
during the period under review, it is a perceptible decrease in comparison with the
€
102 billion spent in the previous period. When this overall figure is broken down,
the contribution of the largest sectors in terms of aid, agriculture, manufacturing, coal
and transport, to this decrease can be seen. For employment and training, a reliable
comparison cannot yet be made for the reasons given under Part VIII below.
However it should be noted that the year-on-year figures presented in Annex II show
that from 1997 aid supporting these activities has increased.

€

Table 1 Overall national State aid in the Community - annual averages 1995-1997 and
1997-1999 in constant prices (1998)

€

Billion

Overall national aid

of which:

- Agriculture

- Fisheries

- Manufacturing

- Coal Mining

- Transport

Of which rail transport

- Services

- Employment

- Training

1995-1997

1997-1999

90

14,0

0,3

27,6

7,6

32,0

31,5

5,4

0,9

2,2

102

15,2

0,3

35,8

8,2

35,4

33,7

5,0

0,8

1,7

21

57.

Table 2 shows overall national aid per capita in the European Union during the two
reporting periods. Relatively high values are seen in Finland and Luxembourg, whilst
the UK and Greece grant, in per capita terms, the lowest amounts of national State
aid. Of the four cohesion countries, only Ireland is above the EU average during the
current reporting period, whilst of the four largest EU economies the UK and Italy
are below this average in the same period.

Table 2 State aid per capita in the Member States - annual averages 1995-1997 and
1997-1999 in constant prices (1998)

Annual averages 1995-
1997

€

€

Annual averages 1997-
1999

€

€

In

Austria

Belgium

Denmark

Germany

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden

United Kingdom

million

2.389

3.285

1.575

32.228

1.584

6.801

2.292

17.989

698

18.523

140

2.739

1.557

2.000

8.519

EU 15

102.319

Population
in millions

8

10

5

82

11

39

5

59

4

58

0

16

10

9

59

375

per capita

270

309

317

326

124

155

387

304

288

236

514

202

154

203

128

240

million

2.180

3.152

1.681

26.716

1.305

6.086

1.994

17.829

1.065

13.605

218

3.159

1.535

1.792

7.569

89.885

per capita

In

296

322

297

393

151

173

445

306

189

322

330

175

156

226

144

273

22

58.

Table 3 shows Member States’ total aid expenditure as a percentage of gross
domestic product per person employed and, relative to total government expenditure.

Table 3 Overall national aid in the Member States in percent of GDP, in Euro per
person employed and in percent of government expenditure 1995-1997 and 1997-1999 in
constant prices (1998)

In percent of GDP

In Euro per person
employed

In percent of total
government
expenditure

1995-1997

1997-1999

1995-1997

1997-1999

1995-1997

1997-1999

Austria

Belgium

Denmark

Germany

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden

United Kingdom

EU 15

1,32

1,55

1,07

1,73

1,55

1,40

2,22

1,46

1,08

1,80

0,94

0,84

1,68

0,99

0,72

1,43

1,16

1,41

1,08

1,39

1,21

1,17

1,74

1,38

1,36

1,28

1,31

0,90

1,56

0,84

0,60

1,18

610

880

599

864

416

493

1.103

790

517

838

633

373

342

492

324

656

550

830

622

712

338

416

914

772

706

607

912

406

326

436

280

563

2,37

2,94

1,80

3,49

3,37

3,21

3,76

2,64

2,72

3,41

2,12

1,69

3,73

1,50

1,63

2,82

2,15

2,76

1,90

2,85

2,70

2,80

3,21

2,55

3,75

2,56

3,04

1,90

3,50

1,35

1,47

2,44

59.

In spite of the convergence, which is stronger in terms of aid as a percentage of GDP
and percent of total government expenditure than in Euro per person employed,
disparities between Member States in the granting of State aid are reflected here. Of
note is the gradual overall EU decrease in total aid as a percentage of GDP. With the
exception of Denmark, Ireland, Luxembourg and the Netherlands where aid levels
have slightly increased due to the growing importance of environmental protection,
training and employment aid measures,
levels have dropped everywhere. Data
pertaining to Luxembourg reflect an important increase in railway investment.

23

60.

The figures below present overall EU State aid as a percentage of overall EU GDP.

Figure 1 State aid as a percentage of overall EU GDP

1,6

1,4

1,2

1,0

0,8

0,6

0,4

0,2

0,0

1995

1996

1997

1998

1999

Figure 2 State aid as a percentage of overall EU GDP of aided sectors

2,5

2,0

1,5

1,0

0,5

0,0

1995

1996

1997

1998

1999

24

Others

Coal

Transport

Manufacturing

Agriculture
and fisheries

Others

Coal

Transport

Manufacturing

Agriculture
and fisheries

61.

62.

Figures 1 and 2 show the gradual decrease in State aid that has been seen in all areas
between 1995 and 1999. Figure 2 presents State aid as a percentage of GDP in all
sectors except those which do not generally receive aid. i.e. Public administration
and defence, compulsory social security, Education, Health and Social work and
other community, social, personal advice activities, Private households with
employed persons and, Extra-territorial organisations and bodies.

Figure 3 below shows in graphical form the data presented in Table 3 on State aid in
each Member State when expressed as a percentage of their respective GDP. A more
detailed analysis of aid granted in each Member State since 1990 is given in Part X
of the Survey.

Figure 3 State aid as a percentage of National GDP in 1995-1997 and 1997-1999

1995 - 1997

1997 - 1999

t
n
e
c

r
e
p

2,5

2,0

1,5

1,0

0,5

0,0

A

B

DK

D

EL

E

FIN

F

IRL

I

L

NL

P

S

UK

EU

25

63.

Table 4 shows by Member State, the share of overall national aid that is granted in
the sectors commented upon in the Survey. During the two periods covered by the
Survey, the share of aid granted in each sector has remained fairly constant at the EU
level with the biggest overall change in share being seen in manufacturing. On the
national level shares are also fairly stable with the largest variations being seen in
transport aid in Ireland, Luxembourg and Portugal. Almost three-quarters of Finnish
national aid was granted to the agricultural and fisheries sectors during the period
under review. During the same period the share of aid granted to manufacturing in
Greece, Ireland and Italy accounted for more than 40% of their respective national
aid. The bulk of aid granted in support of transport services is directed towards rail
transport and during the period under review, over 50% of national aid was granted
to this end in Belgium, Luxembourg and Sweden. Aid granted specifically for
services has remained relatively low in most Member States except in Portugal
where a single regional aid tax scheme accounts for the relatively large share of aid
directed to services in this country.

Table 4 Overall national aid in the Member States - breakdown according to main
sectors 1995-1997 and 1997-1999

Agriculture and
fisheries

Manufacturing

Coal

Transport

Services

per cent

Employment
and Training

1995-

1997-

1995-

1997-

1995-

1997-

1995-

1997-

1995-

1997-

1995-

1997-

1997

1999

1997

1999

1997

1999

1997

1999

1997

1999

1997

1999

AU

B

DK

D

GR

E

FIN

F

IRL

I

LUX

NL

P

S

UK

EU 15

51

8

17

7

11

18

78

20

16

9

23

34

13

14

19

15

46

8

15

6

14

20

74

17

17

13

14

37

20

19

18

16

20

25

41

41

43

31

17

23

38

56

34

22

12

18

18

35

22

21

39

37

41

25

21

26

45

42

21

18

12

23

19

31

27

64

32

35

47

26

2

37

24

31

43

44

19

54

35

35

30

67

31

37

45

24

2

34

13

39

64

44

7

51

35

36

1

2

1

1

0

16

11

4

1

2

2

1

1

1

17

15

5

1

1

45

53

4

3

5

5

3

6

1

3

9

8

3

11

10

10

11

2

1

4

14

1

12

2

10

2

7

2

17

3

16

18

16

18

4

5

13

8

8

8

26

64.

Figure 4 give a graphical representation of the above data for each Member State.

Figure 4 Overall State aid in Member States broken down to main sectors averages 1995
- 1997 and 1997 - 1999

e
g
a
t
n
e
c
r
e
p
n

i

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

A

B

DK

D

EL

E

FIN

F

IRL

I

L

NL

P

S

UK

EU

Agriculture
and Fisheries

Manufacturing

Coal

Transport

Services

Employment
and Training

27

2.1.

65.

66.

PART II – AID TO THE MANUFACTURING SECTOR

Volume and trend of aid

During the current
reporting period from 1997 to 1999, State aid to the
manufacturing sector accounts for 31% of the total annual average volume of aid
granted in the Community.

Table 5 shows the annual amounts of aid to the manufacturing sector in the
Community in the years 1995-1999.

Table 5 State aid to the manufacturing sector in the Community - annual values 1995-
1999 in constant prices (1998)

€

Million

1995

1996

1997

1998

1999

EU 15

38749

35039

33537

27559

21592

The figures above confirm that the trend in aid granted in the Union has not only
continued on the gradual downward path observed since 199313, during the last two
years of the period under review, the trend has accelerated.

A downward trend is also seen when, as in Table 6, aid to the manufacturing sector is
expressed as a percentage of value added and per person employed in this sector.14

Table 6 State aid to the manufacturing sector in the Community - annual values 1995-
1999 in constant prices (1998)

In percent of
value added

In Euro per person
employed

1995

2,8

1287

1996

2,6

1997

2,4

1171

1121

1998

1999

1,9

910

1,5

716

Expressed in percent of value added in the manufacturing sector - aid levels have
dropped continuously since 1995.

The average amount of aid per person employed in the manufacturing sector dropped
each year from

1287 in 1995 to

716 in 1999.

€

€

2.2.

67.

13

14

Comparisons between Member States

Table 7 compares the average annual levels of aid in manufacturing sector for each
Member State15 for the periods 1995-1997 and 1997-1999, expressed in percent of

In comparison with the data presented in the Eighth Survey, the figures above have varied slightly,
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.

28

gross value added and aid amounts per person employed in this sector. Absolute
amounts of aid are also given.

Table 7 State aid to the manufacturing sector in the Member States - annual averages
1995-1997 and 1997-1999 in constant prices (1998)

In percent
of value added

In Euro per
person employed

In million Euro

1995-1997

1997-1999

1995-1997

1997-1999

1995-1997

1997-1999

Austria

Belgium

Denmark

Germany

- Old Länder

- New Länder

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden

United Kingdom

EU 15

1,4

2,1

2,6

3,4

:

:

5,5

2,5

1,7

1,9

1,3

5,0

2,3

1,1

0,9

0,9

0,7

2,6

1,3

1,7

2,6

2,4

:

:

4,3

1,7

1,6

2,0

2,0

2,7

2,1

1,0

0,9

1,0

0,6

1,9

685

1237

1429

1592

431

6854

1093

841

937

1090

1075

2025

1464

561

185

490

357

1193

696

1003

1453

1211

437

4820

876

567

968

1235

1683

1108

1380

530

193

557

322

916

473

826

642

13144

2914

10230

677

2117

394

4141

263

10350

48

595

183

364

478

657

655

9808

2913

6896

537

1548

424

4651

477

5694

45

571

192

418

1558

1408

35775

27563

68.

€

The annual average aid for the manufacturing sector in the EU during the current
reporting period, 1997-1999, is approximately
28 billion, representing a decrease
of 23% in comparison with 1995-1997. This decrease is half as large again as that
reported in the previous Survey. It is evident from Table 7 that the overall reduction
of aid in absolute terms in the Community is almost entirely due to the continued
strong decreases of 32,6% and 45% respectively in the new German Bundesländer
and Italy. Reductions are also seen in Belgium, Greece, Spain, Luxembourg; the
Netherlands and the United Kingdom. When comparing the two reporting periods aid
levels in the seven other Member States are higher in the current reporting period
than during the previous period.

15

Germany has been divided in to the old and new Bundesländer in order to show clearly the different
development in the two German areas, marked by the unprecedented adjustment process of the new
Bundesländer economy to a market system.

29

69.

70.

These two apparently contradictory trends of increases in seven Member States and
an overall decrease at the EU level are explained when Table A3 is considered. This
table confirms the long-term downward trend in overall EU aid to manufacturing and
also confirms the medium-term downward trend in almost all Member States. On a
year-on-year basis there are decreases in 13 Member States. With the exception of
Belgium and Sweden, there is evidence that levels of aid for manufacturing are
decreasing in Member States. However as the rate of decrease during the current
reporting period is less in seven countries than their respective rates of increase
during the previous reporting period, their respective 1997-1999 annual averages are
higher than their 1995-1997 annual averages.

When considering the overall differences in the Community under the aspect of
cohesion, Table 7 shows that the volume of aid in the four cohesion countries has
hardly increased. It has only grown from 9% in 1995-1997 to almost 10% of aid to
the manufacturing sector in the Community in 1997-1999. Furthermore this increase
is mainly due to the inclusion of data on an Irish Corporation tax scheme since 1998.
When comparing the same periods,
the share of the four big economies has
decreased from 82% to 79%. In this context it should also be noted that, in addition
to national State aid,
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.

the manufacturing sector benefits

30

Figure 5 State aid to the manufacturing sector in the Member States as a percentage of
value added. Annual averages 1995-1997 and 1997-1999

t

n
e
c
r
e
p

6

5

4

3

2

1

0

71.

72.

AU

B

DK

D

GR

E

FIN

F

IRL

I

L

NL

P

S

UK

EUR 15

1995 - 1997

1997 - 1999

Expressed as a percentage of value added, the highest levels of aid granted to the
manufacturing sector in 1997-1999 are found in Greece, Italy and Denmark (see
Figure 5). These countries rank above the Community average, although the long-
term decreasing trend in Italy continues. The increase seen in Ireland is due to the
inclusion of figures from 1998 on an Irish tax scheme that is now being phased out.
If this were discounted the underlying trend in Ireland would also be downwards.

Due mainly to the aforementioned tax scheme, aid per person employed in Ireland is
the highest of all Member States during the period 1997-1999 followed by Denmark,
Luxembourg, France and Germany. The high but decreasing figure for the new
German Bundesländer 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 in aid levels 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 Bundesländer is
among the lowest in the Community. Countries where levels of aid remain low are,
in descending order, Portugal, the United Kingdom, the Netherlands and Sweden.

31

2.3.

Aid objectives

2.3.1. Overview

73.

Aid to the manufacturing sector is classified according to the primary objectives 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
Rescue and restructuring16
Other objectives

Particular sectors

–
–
–

Shipbuilding
Steel
Other manufacturing sectors

Regional objectives

–
–

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

74.

In some Member States aid schemes classified under the primary objective of
regional aid and approved according to the regional aid guidelines may also support
secondary objectives such as research and development, training and employment.
Similarly, secondary objectives may also be attained by way of aid schemes whose
primary objective is for example, aid for SME’s. Consequently, observations
concerning changing trends and comparisons between Member States, as indicated in
Tables 8 and 9 respectively, are limited to the primary objectives of the schemes
concerned.

2.3.2. Changing trends - Horizontal Objectives

75.

As regards the development over time, the distribution of aid to the manufacturing
sector between the above three different main objectives is shown in Table 8. The
share of aid granted for horizontal objectives has increased and whilst this type of aid
continues to be ranked second,
it now absorbs 34% of aid granted to the
manufacturing sector. A further 3% was also granted for rescue and restructuring and
its breakdown by Member State is also indicated in Table 8. The share of horizontal
including rescue and restructuring, has risen in thirteen countries and
aid, not
consistently remains well above the EU average in Denmark, Finland and the
Netherlands. Moreover the share is below the EU average in only Greece, Germany

16

Rescue and restructuring aid is classified amongst other types of horizontal aid given that it is limited to
neither certain sectors of the economy nor to certain regions.

32

and Italy. The most significant increase appears to be in Ireland. However this is due
to the inclusion of data, since 1998, on the ICT17.

Table 8 State aid to the manufacturing sector in the Member States - breakdown by
main objectives 1995-1997 and 1997-1999

Horizontal
Objectives
without Rescue
and
restructuring

Rescue and
Restructuring

Particular
Manufacturing
Sectors

Percent

Regional
Objectives

1995-1997/

1995-1997/

1995-1997/

1995-1997/

1997-1999

1997-1999

1997-1995

1997-1995

56

46

85

24

0

23

71

44

19
0

13

29

76

61

45

39

27

59

65

92

29

4

34

74

35

65
56

18

37

83

62

59

39

34

14

1

0

3

1

0

<1

<1

0

3

0

15

0

10

0

<1

1

0

0

5

0

4

0

13

0

4

0

0

3

0

0

3

3

23

13

6

1

60

9

6

9

5

2

9

3

0

6

5

3

40

10

10

1

5

0

3

23

18

0

1

9

0

1

7

27

29

2

71

37.6

99

14

20

35

71

72

69

16

15

55

60

59

35

34

2

67

22.2

93

22

16

42

34

73

63

14

17

41

61

56

Austria

Belgium

Denmark

Germany

of which Treuhand

Greece

Spain

Finland

France

Ireland
of which ICT

Italy

Luxembourg

Netherlands

Portugal

Sweden

UK

EU 15

76.

17

An increasing share of manufacturing aid was directed towards horizontal objectives
in the period from 1997 to 1999 and 14% and 12% were directed towards research

ICT – Irish Corporation Tax is a tax scheme now being phased out and that can be considered as being
a horizontal aid since it benefits the whole manufacturing sector.

33

and development18 and small and medium-sized enterprises respectively. The share
of aid granted for rescue and restructuring, a category of aid that is also considered
under horizontal objectives dropped. However in contrast with the former objectives,
the highly distortive effects of rescue and restructuring aid are normally not matched
to be very strictly
by important positive externalities. Such aid has,
controlled. It is discussed further under 2.5, ad-hoc aid.

therefore,

77.

An analysis of aid that supports R&D, SMEs, environmental protection and energy
saving and as such is considered as generating positive externalities, shows a slightly
different picture with increases in twelve Member States. Figure 6 clearly shows the
vast disparities between Member States in respect of the level of State aid for these
four objectives. 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 some Member States the relative weight of horizontal objectives did not increase
in the reporting period.

Figure 6 Aid for R&D, SMEs, environmental protection and energy saving in the
Member States - as a percentage of aid to manufacturing 1995-1997 and 1997-1999

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

100

80

60

40

20

0

78.

1995-97

1997-99

AU

B

D K

D

G R

E

F IN

F

IR L

IT

L

N L

P

S W

U K

E U R 1 5

Included in the category aid for environmental protection is a sub-category of
schemes that is gradually increasing in importance. CO2 emission tax schemes 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 in to under the terms of the Kyoto Agreement and the more general aim of
achieving sustainable development.

18

For the reasons explained in Annex I, point 11.1, the R&D figures contained in Table 8 may be
underestimated.

34

79.

80.

tax
Two types of State aid instruments are used and often in combination:
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 partial and temporary
exemptions.

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, Germany, Finland, France, the Netherlands, Sweden and the United
Kingdom use such measures. In the near future the number of other Member States
expected to adopt similar measures is likely to increase.

Table 9 State aid for CO2 emission tax schemes 1995-1999

Denmark

Germany

Finland

France

Netherlands

Sweden

United Kingdom

1995

108,5

8,3

-

21,4

-

6,5

1,8

1996

171,7

4,3

-

17,1

0,4

6,4

1,3

1997

202,9

4,6

-

15,3

0,1

16,8

1,5

1998

237,0

0,4

0,1

15,2

1,2

22,6

10,1

€

Million

1999

233,4

0,6

0,3

15,1

10,7

21,1

9,3

81.

Total

146,5

201,2

241,2

286,4

290,5

A sub-category of aid for SMEs that may constitute State aid, comprises government
support measures for foreign direct investment outside the EU. These measures may
be compatible with the common interest if they promote the competitiveness of
for example, by assisting the development of SMEs or
European industry,
contributing 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 proposed by Member States specifically for this objective, has
been approved by the Commission. The programmes concerned are only available to
SMEs, nevertheless their geographical coverage is world-wide, thus responding to a
need not only to reinforce support to the major sources of employment in the EU, but
also to facilitate the widening of their horizons.

35

Table 10 State aid for foreign direct investment carried out by SMEs 1995-1999

Grants

Loans

Guarantees

Total

1995

10,8

1,5

8,3

20,6

1996

8,8

1,0

11,4

21,1

1997

8,5

1,0

25,8

35,2

1998

18,7

0,5

10,2

29,3

€

Million

1999

16,0

0,4

16,1

32,5

2.3.3. Changing trends – Aid for Particular Sectors

82.

83.

The proportion of manufacturing aid granted specifically to particular sectors as
given in Table 8, continues to decrease and in the period under review dropped to 7%
of all manufacturing aid in the Community. The decrease in the share of aid to
particular manufacturing sectors in ten Member States has largely outweighed the
marginal increases in four others. In Italy the share has remained constant. Whilst
this category of aid is not always recognised as generating the positive externalities
attributed to most horizontal aid, it is often granted in regions qualifying for regional
assistance and may therefore contribute to general regional support policies.

The reductions in aid for particular sectors are due to the almost complete halt in
industry and the
rescue and restructuring aid specifically directed to the steel
decrease in aid to shipbuilding, which nevertheless still represents almost two-thirds
of this category of aid (see Table A5/16). In Belgium, no sectorial aid was granted
during the period under review whilst the relatively high, albeit decreasing, level in
Spain is due to the restructuring aid granted for shipbuilding. A detailed picture of
these sectors is given below.

2.3.3.1 The steel industry

84.

85.

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 in compliance with the
Fifth and Sixth Steel Aid Codes of 1991 and 199619 respectively. Aid granted outside
the ECSC steel sector was regulated under the 1988 Framework for certain steel
sectors not covered by the ECSC Treaty.20

797 million
Together these grants of aid decreased from an annual average of
during the period 1995-1997 to an annual average of
130 million during the current
reporting period, thus reflecting a significant reduction of over 84%. It should be
€
noted moreover that the 1999 level was down to only
33 million. These figures do
not include the marginal amounts of aid granted to this sector in the context of
schemes supporting R&D, environmental protection and energy saving. However,
they do show that the major restructuring and concomitant capacity reductions that

€

€

19

20

Commission Decisions No 3855/91/ECSC of 27.11.1991 and No 2496/96/ECSC of 18.12.1996
establishing Community rules for State aid to the steel industry.
Framework for certain steel sectors not covered by the ECSC Treaty, 13.12.1988.

36

have been undertaken since 1994 in Austria, the new German Bundesländer, Spain,
Ireland, Italy and Portugal are now almost complete.

2.3.3.2 Shipbuilding

86.

During the reporting period the granting of aid for shipbuilding, a sub-sector of the
manufacturing sector, was governed by the Seventh Shipbuilding Directive21, which
applied from 01/01/1991 until 31/12/1998 and, since then, Council Regulation
1540/9822. The average annual amounts of aid granted in the periods 1995-1997 and
1997-1999 are given in Table 11.

Table 11 Aid to the Shipbuilding sector

€

million

Contract related aid

Rescue and
Restructuring aid

1995 - 1997 1997 - 1999 1995 - 1997 1997 - 1999

Denmark

Germany

Greece

Spain

Finland

France

Italy

Netherlands

Portugal

United Kingdom

EUR 15

81

257

130

25

37

287

52

12

882

37

160

64

35

164

147

20

5

632

314

0.4

426

143

7.5

366

0

93

12

12

752

622

87.

21

22

23

€

€

622 million per year; a
During the period 1997-1999, restructuring aid averaged
decrease from the
752 million granted during the period 1995-1997. In addition to
restructuring aid, Table 11 also shows contract related operating aid granted for new
constructions including ships for developing countries and conversions. Given
decreases in operating aid in all countries except Finland and France, the overall
average annual level of all aid granted to this sector decreased from
1.634 million
during 1995-1997 to

1.254 million during 1997-199923.

€

€

OJ L 380 of 31.12.1990.
OJ L 202 of 18.07.1998
Figures in this table are higher than those reported in Third Report from the Commission to the Council
on the Situation in World Shipbuilding, COM(2000)730 final, dated 15.11.2000. The discrepancy

37

88.

The aid ceilings under the Directive and Regulation 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% of contract value for ships with a contract
value of more than
10 million. However, this ceiling did not apply to aid for the
construction of ships for developing countries for which the minimum is 25% of the
contract price. Table 12 presents the average aid ceilings, only including direct grants
to shipyards or ship owners, in each Member State.

€

Table 12 Aid to shipbuilding in the Member States in percent of contract value of ships
1997-1999

1997

Large
Ships

Small
Ships

Total

Small
Ships

1998

Large
Ships

Total

Small
Ships

1999

Large
Ships

Total

Austria

Belgium

Denmark

Germany

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

4,5

4,5

0,5

4,5

4,5

2,9

9,0

6,4

7,6

5,3

9,0

8,9

6,3

7,4

5,3

9,0

9,0

6,4

4,3

3,1

9,0

8,1

6,4

3,9

3,1

8,6

8,6

6,3

8,6

6,3

4,5

9

9

9

9

4,5

9,0

8,9

4,5

9,0

8,9

4,5

9,0

9,0

Netherlands

3,2

3,8

3,6

2,6

4,4

4,1

3,8

5,4

4,7

Portugal

Sweden

United Kingdom

8,7

8,7

-

-

-

* Small ships are those with a contract value of less than
intensity allowed is 4.5% of contract value.
** Large ships are those with a contract value of more than
intensity allowed is 9% of contract value.
- Note that a dash indicates missing information, whereas a blank indicates no aid.

10 million. For these the maximum aid
€

10 million. For these the maximum aid

€

between these figures comes from the fact that figures presented in the report to the Council were
limited to those relating to new constructions and which benefited from the normal application of article
4 of the seventh Directive (max 9% of the contract price, 4,5 % for smaller vessels). The Survey
includes all contracts benefiting from aid (development aid contracts and conversion contracts).
Moreover the figures given in the Survey are in constant

1998 and not nominal values.

€

38

89.

Aid granted for the construction of ships for developing countries is given in
conformity with Article 4.7 of the Seventh Shipbuilding Directive and Article 3.5 of
Council Regulation 1540/98. Although there is a sharp increase in this type of aid in
1999, the annual average level of State aid that was granted to European shipyards
for this purpose during the period 1997-1999 was
103 million. This represents a
148 million granted
30% reduction when compared with the annual average of
during the period 1995-1997. The distribution of this development aid by country is
given in Table 13.

€

€

Table 13 Shipbuilding development aid 1995-1999 as approved by the Commission. (The
reference year corresponds with the Commission’s decision date).

€

Million

Germany

Spain

France

Netherlands

Total

1995

1996

1997

1998

1999

106

58

40

34

238

101

33

0

48

182

7

9

0

9

25

3

0

0

7,5

10,5

0

59

215

0

274

90.

In order to put the above figures into context, Table 14 presents information on the
total number of new ships for which aid was granted during the period 1995-1999.
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 14 Shipbuilding – total number of new ships supported by State aid 1995-1999

1995

1996

1997

1998

1999

Denmark

Germany

Spain

Finland

France

Italy

Netherlands

Portugal

United Kingdom

Total

21

153

72

-

72

111

73

0

12

514

18

35

n.a.

3

3

67

49

0

6

13

65

40

8

0

14

28

0

3

5

50

10

4

28

37

22

0

0

3

49

2

1

9

23

42

0

0

181

171

156

129

39

2.3.3.3 The motor vehicle industry

91.

Whilst there are no aid schemes in the EU that are specific to this sub-sector, State
aid as shown in Table 15 is approved to the sector and mainly by way of regional,
rescue and restructuring and training aid. The awarding of this type of aid by
Member States remains within tight limits that are imposed by a specific motor
vehicle framework. It is not possible at present to draw any conclusions as regards
the general trend because of the very small number of cases.

Table 15 State aid approved to the motor vehicle sector 1995-1999 (not including cases
below the notification ceilings)

€

Million

1995

1996

1997

1998

1999

Austria

Belgium

Germany

Spain

Finland

France

Italy

Netherlands

Portugal

Sweden

United Kingdom

0

33

3

328

0

0

0

7

0

0

0

Total

371

10

0

340

202

0

83

0

0

103

0

72

810

26

0

59

1

6

6

107

6

0

1

65

277

2

6

163

9

0

52

7

0

0

0

101

340

0

0

0

29

0

0

61

0

0

0

17

107

2.3.4. Changing trends – Regional Objectives

92.

The overall EU level of regional aid continues to drop slightly. 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. Table 8 shows that during the
period under review, 56% 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 regions.24 This figure includes aid amounting to an annual average of
€
2,179 million that is granted to the new German Bundesländer by way of the
If no account were taken of this
Treuhandanstalt (THA) and its successors.
exceptional aid, aid for regional purposes would represent 53% of total aid to
manufacturing.

24

A list of these regions is given in Annex I, point 9.2.

40

93.

Figure 7 below presents the level of Regional State aid in each Member State as a
percentage of total national GDP. In five Member States the levels have been
relatively constant during the current
In contrast significant
decreases are seen in Germany, Greece, Ireland, Italy and Luxembourg. Smaller
decreases are seen in Belgium, Sweden and the UK.

reporting period.

Figure 7 Regional aid as a percentage of national GDP 1995 - 1999

A

B

DK

D

EL

E

FIN

F

IRL

I

L

NL

P

S

UK

EU

0,00

0,20

0,40

0,60

0,80

1,00

1,20

1995

1996

1997

1998

1999

94.

95.

96.

their

respective overall

In Member States where the share of regional aid is close to or below the EU
average,
levels of manufacturing aid, expressed as a
percentage of value added, are also below the European average. The one notable
exception is Denmark where although the share of regional aid is the lowest in the
Union, this country’s level of manufacturing aid is the third highest in the EU.
Conversely, where the share of regional aid is above the EU average, it then appears,
with the exception of Sweden and the UK whose aid levels are amongst the lowest in
the Union, that the respective Member States’ level of manufacturing aid is also
above the EU average.

Table 16 below compares regional aid per head of population in the assisted regions
(per eligible capita) in Euro and regional aid as a percentage of total national GDP.
In terms of aid per eligible capita, the highest levels are seen in Germany, Italy,
Luxembourg and Sweden. Portugal gives by far the lowest level of regional aid to
manufacturing, followed by Spain and Denmark. (If the regional aid that Portugal
grants in Madeira by way of tax exemptions to the island’s service industry were
included, its level of aid per eligible capita would increase from

3,4 to

80.)

€

€

Whilst not all aid granted in assisted regions is jointly financed with Community
funds, to appreciate the full weight of regional aid, a regional aid multiplier should
be applied in order to account for the contribution made by Community funds to

41

those schemes that are jointly financed. In many assisted regions that benefit from
the derogation foreseen in Article 88§3a, Community funding for certain schemes
may be as much as three times as high as the respective national State aid. In assisted
regions that benefit from the derogation foreseen in Article 88§3c, Community
funding may add a further 30 to 50% to respective national State aid.

Table 16 Regional aid per eligible capita in Euro and regional aid as a percentage of
total GDP

Regional aid per eligible
capita in Euro

Eligible population in
Millions

Regional aid as a percentage
of total GDP

1995-1997 1997-1999

1996

1998

1995-1997

1997-1999

Austria

Belgium

Denmark

Germany

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden

45,4

68,4

14,5

59,4

61,9

13,6

2,83

3,55

1,05

2,83

3,57

1,06

297,8

208,9

31,17

31,26

63,7

9,8

36,9

58,1

51,8

266,9

188,5

34,7

2,7

47,7

11,3

31,7

78,9

43,5

10,47

10,51

29,82

2,13

24,7

3,62

29,9

2,14

24,9

3,69

148,1

28,04

28,15

155,6

28,7

3,4

0,18

2,68

9,92

1,63

0,18

2,71

9,96

1,64

0,07

0,11

0,01

0,50

0,68

0,06

0,08

0,12

0,31

0,79

0,23

0,03

0,03

0,10

122,9

103,8

United Kingdom

41,7

37,9

22,42

22,57

0,089

EU 15

121,1

87,4

174,22

175,05

0,30

0,09

0,10

0,01

0,34

0,45

0,06

0,06

0,15

0,21

0,39

0,17

0,02

0,03

0,08

0,07

0,20

97.

€

During the period under review, the process of reorganising the economy of the new
German Bundesländer continued. The reunification of Germany is of particular
importance for Community State aid policy. In 1997-1999, an average annual
volume of
6,9 billion was granted in aid to manufacturing in the new
Bundesländer. This, although on a high level, is a considerable further decline in
€
10 billion was granted. In addition, this
comparison with 1995-1997, when over
reduction is accompanied by a stabilisation in aid to the old Bundesländer, which
now stands at
2.9 billion during 1995-1997 and 1997-1999. The breakdown into

€

42

98.

99.

the different aid instruments used in the new Bundesländer is given in Table A4 in
Annex II.

€

€

5,978

billion

With the exception of some specific aspects of the rescue and restructuring
guidelines,25 in the period 1997-1999 normal State aid rules applied to the new
1,084 billion per year and loans
German Bundesländer. Guarantees averaging
averaging
für
year were
vereinigungsbedingte Sonderaufgaben (BvS). Based on its previous experience, the
Commission is of the opinion that 20% of both 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
767 million, so that the total amount
of aid granted by BvS, the former Treuhandanstalt, equals a yearly average of
2.2
billion.

by Bundesanstalt

given

per

€

€

By virtue of the Article 299 EC Treaty, outlying regions of the Union enjoy a special
status that reflects their structural social and economic situation that is compounded
by their remoteness. The respective aid intensities in these regions may be higher
than elsewhere and operating aid, which is not progressively reduced and limited in
time, is allowed when it compensates for additional transport costs. The status of
these outlying areas was further reinforced after the Treaty of Amsterdam and the
new Article 299§226 entered into force. These regions now benefit automatically
from the derogation foreseen under Article 87§3(c) of the Treaty. Secondly in the
outermost regions qualifying for exemption under Article 87§3(a) and (c) of the
Treaty, operating aid, which is not both progressively reduced and limited in time,
may be granted not only for additional transport costs, but also in order to offset
other additional costs arising in the pursuit of economic activity from the factors
identified in Article 299§2. It is the task of Member States to determine the amount
of the additional costs and prove they are linked to the factors identified in Article
299§2.

100.

A preliminary overview of the level of aid that is granted directly by or, that is
specifically aimed at the outermost regions of the Union is presented in Table 17
below. In Table 18, the level of aid in each of the regions is expressed as a
percentage of the respective region’s GDP.

25

26

Community guidelines on State aid for rescuing and restructuring firms in difficulty, OJ C 368 of
23.12.1994 and Community guidelines on State aid for rescuing and restructuring firms in difficulty,
OJ C 288 of 09.10.1999.
Article 229§2 ( ex Article 227)
The provisions of this Treaty shall apply to the French overseas departments, the Azores, Madeira and
the Canary Islands. However, taking account of the structural social and economic situation of the
French overseas departments, the Azores, Madeira and the Canary Islands, which is compounded by
their remoteness, insularity, small size, difficult topography and climate, economic dependence on a
few products, the permanence and combination of which severely restrain their development, the
Council, acting by a qualified majority on a proposal from the Commission and after consulting the
European Parliament, shall adopt specific measures aimed, in particular, at laying down the conditions
of
policies.
The Council shall, when adopting the relevant measures referred to in the second subparagraph, take
into account areas such as customs and trade policies, fiscal policy, free zones, agriculture and fisheries
policies, conditions for supply of raw materials and essential consumer goods, State aids and conditions
of access to structural funds and to horizontal Community programmes. The Council shall adopt the
measures referred to in the second subparagraph taking into account the special characteristics and
constraints of the outermost regions without undermining the integrity and the coherence of the
community legal order, including the internal market and common policies.

present Treaty

application

including

common

regions,

those

the

of

to

43

Table 17 Absolute levels of State aid granted directly by or specifically aimed at the
outermost regions of the Union

€

Million

1995

1996

1997

1998

1999

Total

660,45

1.145,05

1.845,46

1.585,65

1.057,73

of which Canarias

51,93

13,84

21,05

52,52

36,11

DOM'S

427,64

506,46

649,70

847,07

534,54

Madeira

175,48

615,62

1.165,88

680,17

486,67

Acores

5,40

9,13

8,84

5,89

0,41

Table 18 State aid granted directly by or specifically aimed at the outermost regions of
the Union expressed as a percentage of the respective regions’ GDP

1995

1996

1997

1998

1999

Percent GDP

Total

0.018

0.029

0.046

0.037

of which Canarias

0.003

0.001

0.001

0.003

DOM'S

0.024

0.028

0.035

0.044

Madeira

10

34

62

34

Açores

0.004

0.006

0.006

0.004

n/a

n/a

n/a

n/a

n/a

2.3.5.

Trends and Patterns of State aid in Member States

101.

The trends and patterns of aid that is granted to the manufacturing sector in each
Member State is as follows:

–

–

In Austria, the average annual amounts of aid during the two three-year periods
under review are fairly steady. This steady medium term trend is the result of a
gradual increase in annual aid levels until 1997 that was followed by similar
reductions in annual levels until 1999. When comparing the two three year
periods, there was a significant decrease in aid to rescue and restructuring aid.
Together aid for R&D, environment and SMEs accounted for the largest share
of aid to manufacturing. Aid for particular sectors has remained stable and its
the share of regional aid,
share of aid to manufacturing is low whilst
particularly in article 87(3)a regions,
to the first
reporting period.

increased with respect

In Belgium, the medium term downward trend in levels of aid that is seen
when comparing the two reporting periods is due to a single sectorial scheme
that, accounting for some 23% of all Belgian aid to manufacturing, was

44

abolished in 1996. However since 1997 the absolute amount of manufacturing
aid has slowly crept upwards again as resources directed towards R & D and
SMEs have increased. A constant element of manufacturing aid policy in
Belgium that complements action under R&D and SME schemes, is support
given by way of other horizontal schemes that encourage the reconversion of
industry and improvement of its technical base. These schemes now represent
approximately 20% of all Belgian manufacturing aid. Regional aid to article
87(3)c regions is relatively constant. The shares of horizontal and regional aid
have risen at the expense of aid to particular manufacturing sectors.

In Denmark, the average annual amounts of aid during the two three-year
periods under review show a very slight increase. However this medium term
trend is the result of a gradual annual increase until 1997 that was subsequently
followed by slightly smaller annual reductions until 1999. Horizontal aid in
Denmark accounted for the largest share of aid to manufacturing with
gradually increasing resources being directed towards the main beneficiaries,
R&D, environment and energy saving. These increases are due to the
increasing level of support afforded to energy saving and environmental
protection, mainly in the form of exemptions from energy/CO2 taxes. When
comparing the two periods, the most significant decrease was seen in aid for
shipbuilding. Regional aid in Denmark is the lowest in the Community.

In Germany the average annual amounts of aid during the two three-year
periods under review reflect the continued reduction of aid in the new German
Bundesländer. At
the same time the share of horizontal aid is gradually
increasing as the shares of sectorial and overall regional aid drop. However
these changes hide the more subtle variations in the grant of aid. In absolute
terms aid supporting most horizontal objectives except R&D and rescue and
restructuring has now dropped each year since 1995. Regional aid remains the
most important objective in Germany. However whilst aid granted in the article
87(3)a regions continues to decline rapidly, it now appears that aid granted in
article 87(3)c regions is no longer decreasing.

In Greece, most aid is classified as regional aid, which has decreased not only
when the two reporting periods are compared, but also almost every year since
1995.

In Spain, when comparing the two reporting periods, the level of overall
manufacturing aid has diminished as a result of a considerable decrease in aid
granted to the steel sector and a drop in shipbuilding aid. However aid for
shipbuilding remains the most important element of State aid in Spain and in
spite of an approximately 20% decrease in absolute terms between the previous
and current reporting periods, it still represents 25% of all manufacturing aid.
The share of horizontal aid, particularly for R&D, SMEs and energy saving,
increased in the current reporting period as well as regional aid.

In Finland, a comparison of the average annual amounts of aid during the two
three-year periods under review shows a slight increase. This apparent medium
term trend is the result of an increase in annual aid levels until 1997 that was
followed by smaller reductions in annual levels until 1999. Horizontal aid,
especially that benefiting R&D, SMEs and energy saving, continues to account
for a large share of manufacturing aid. The share of regional aid has decreased

45

–

–

–

–

–

–

–

–

–

–

–

slightly. Even though the share of sectorial aid appears to have increased, with
shipbuilding benefiting the most, aid to shipbuilding in Finland has, on an
annual basis, dropped very sharply since 1997 when it was recorded for the
first time.

In France, the underlying trend in the grant of aid is similar to Finland. A
comparison of the average annual amounts of aid during the two three-year
periods under review shows a ten percent increase. This apparent medium term
trend is the result of an increase in annual aid levels until a peak was reached in
1997, followed by a gradual reduction in annual levels until 1999. The grant of
large amounts of rescue and restructuring aid compounded with a sharp
increase in regional aid caused this peak. When comparing the two reporting
periods the share of regional aid and aid directed to particular sectors has
increased, whilst the share of horizontal aid has decreased.

In Ireland, whilst a comparison of the average annual amounts of aid during the
two three-year periods under review shows a substantial
this is
entirely due to the inclusion of data on Irish Corporation Tax (ICT) since 1998.
During the period under review ICT accounted for approximately 56% of all
aid to manufacturing. When ICT and the remaining aid to manufacturing are
considered separately,
it can be seen that both of these components are
gradually decreasing. The most significant reduction since 1996 is in regional
aid that has almost halved. Sectorial aid has also dropped considerably.

increase,

In Italy, the long-term downward trend has continued and in fact accelerated
during the current period under review. Given decreases in all areas and
particularly drastic reductions in rescue and restructuring and in major regional
aid programmes, the shares of horizontal, sectorial and regional aid have
remained relatively stable. Even if regional aid increases in 2000 as current
estimates indicate, the current downward trend in aid to manufacturing that has
lasted since the period 1990-1992, should not be interrupted.

In Luxembourg, the contribution of horizontal aid has increased from the first
to the second reporting period. In contrast at the end of the current reporting
period there was a significant reduction in regional aid. In spite of this
reduction,
two thirds of aid to
manufacturing.

regional aid still accounts for almost

In the Netherlands, a comparison of the average annual amounts of aid during
the two three-year periods under review shows a slight decrease reflecting a
gradual reduction in the amount of aid to manufacturing since 1996. Horizontal
aid, especially that benefiting R&D, environmental protection and energy
saving, continues to account for a large and increasing share of manufacturing
aid. The share of aid for particular manufacturing sectors has decreased from
9% to 3% given a large reduction in aid to shipbuilding. The share of regional
aid has also decreased slightly.

In Portugal, levels of aid to manufacturing have kept within a relatively narrow
band for a number of years demonstrating a stable State aid policy
characterised by small long-term variations in trends and patterns. Given the
relatively low levels of aid, it is only sporadic grants of sectorial aid that
200 million mark. Most recently in 1999, an
increase aid levels over the

€

46

increase in resources directed towards the textile sector led to the slight
reporting period. Complementing horizontal aid
increase in the current
measures such as R&D, SME and energy saving is a single horizontal scheme
that accounts for approximately 30% of all manufacturing aid. The share of
horizontal aid in Portugal has risen slightly and in the period 1997-1999
accounts for almost two-thirds of all manufacturing aid whilst aid for particular
sectors dropped in the same period to 18%.

In Sweden27, a gradual increase in aid levels can be seen when comparing the
two reporting periods. This increase reflects the two principle trends since
1995: the strong increase in environmental aid that has only partly been offset
by small but continual reductions in regional aid. This is the only Member
State where there is no sectorial aid so as the share of regional aid drops, the
share of horizontal aid increases. The only components of this latter category
are, R & D, environmental protection, SME and energy saving.

In the United Kingdom, the gradual decrease in aid levels that can be seen
when comparing the two reporting periods reflects the downward trend in
manufacturing aid since a peak was reached in 1996. Given the across-the-
board reductions in levels of aid, the shares of aid granted for horizontal,
sectorial and regional objectives have remained very stable. SME, R&D and
Regional aid still account for the largest proportion with over a quarter of the
latter being spent in Northern Ireland.

–

–

102.

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

27

The change of basis for the fiscal year in Sweden as from 1997 made it necessary to find a practical
solution for the presentation of the figures for the years 1995 and 1996. Figures for these two years have
therefore been calculated from the 12-month average equivalent of the 18-month period for the
prolonged fiscal year 1995/96 that ran from the 1st July 1995 until the 31st December 1996.

47

Table 19 State aid to the manufacturing sector in the Member States - breakdown according to sector and function 1995-1997

Percent

SECTOR/OBJECTIVE

AU

B

DK

D

GR

E

FIN

F

IRL

I

LUX

NL

P

S

UK

EU 15

Horizontal Objectives

Research and development

Environment

Small and
Medium-sized enterprises

Commerce

Energy saving

Rescue and restructuring

Other objectives

Particular Sectors

Shipbuilding

Other sectors

Regional Objectives

Regions -Article 87(3)a

Regions -Article 87(3)c

TOTAL

70

30

10

15

0

1

14

0

3

0

3

27

7

20

47

14

1

13

3

0

1

15

23

0

23

29

0

29

85

23

27

6

6

22

0

0

13

13

0

2

0

2

24

9

1

11

0

2

0

0

6

4

1

71

65

6

0

0

0

0

0

0

0

0

1

0

1

99

99

0

26

7

1

12

0

1

3

1

60

26

33

14

4

10

71

35

2

20

12

3

0

0

9

6

2

20

0

20

59

30

1

7

5

1

15

0

6

1

5

35

13

22

19

23

7

0

1

2

0

0

9

9

0

9

71

71

0

3

0

8

0

1

10

1

5

3

2

72

71

1

29

7

3

19

1

0

0

0

2

0

1

69

0

69

76

21

12

4

4

31

0

4

9

9

0

16

0

16

62

8

0

2

0

5

1

47

23

6

17

15

15

0

45

20

6

12

0

7

0

0

0

0

0

55

0

55

39

14

0

18

7

1

0

0

1

1

0

60

17

43

32

11

2

10

1

2

5

1

9

5

4

59

49

10

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

48

Table 20 State aid to the manufacturing sector in the Member States- breakdown according to sector and function 1997-1999

Percent

SECTOR/OBJECTIVE

AU

B

DK

D

GR

E

FIN

F

IRL

I

LUX

NL

P

S

UK

EU 15

Horizontal Objectives

Research and development

Environment

Small and
Medium-sized enterprises

Commerce

Energy saving

Rescue and restructuring

Other objectives

Particular Sectors

Shipbuilding

Other sectors

Regional Objectives

Regions -Article 87(3)a

Regions -Article 87(3)c

TOTAL

62

33

11

14

0

1

3

0

3

0

3

35

6

29

66

19

1

23

1

0

1

21

0

0

0

34

0

34

92

25

37

2

5

22

0

0

6

6

0

2

0

2

29

13

1

13

0

2

0

0

5

3

2

67

59

8

4

0

0

3

1

0

0

0

3

1

1

93

93

0

38

14

1

16

0

2

4

2

40

28

13

22

6

16

74

37

1

16

10

9

0

0

10

8

2

16

0

16

48

25

1

6

3

1

13

0

10

6

4

42

15

27

65

3

0

1

1

1

0

60

1

0

1

34

34

0

22

5

0

12

0

0

4

1

5

3

2

73

71

3

37

10

5

22

1

0

0

0

0

0

0

63

0

63

83

26

14

4

4

29

0

6

3

3

0

14

0

14

65

6

0

12

0

5

3

39

18

6

12

17

17

0

59

21

22

9

0

7

0

0

0

0

0

41

0

41

39

9

0

22

7

2

0

0

1

0

0

61

17

44

37

14

2

12

1

2

3

2

7

5

2

56

42

14

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

49

2.4.

Types of aid instrument

103.

Table 21 presents the distribution, as a percentage of total manufacturing aid, of the
various types of aid instrument that were used by Member States during the current
reporting period.

Table 21 State aid to the manufacturing sector in the Member States - breakdown
according to type of aid instrument 1997-1999

TYPE OF AID

Percent

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

EU 15

77

72

56

60

97

91

88

30

30

64

94

64

85

70

97

61

0

17

35

11

1

0

2

47

58

33

4

20

4

16

1

22

0

5

0

0

0

2

1

13

8

1

0

0

2

2

0

3

18

4

7

21

2

7

8

8

0

3

2

5

9

12

1

11

0

1

0

1

0

0

0

0

0

0

0

8

0

0

1

1

5

1

2

5

0

0

0

2

5

0

0

2

0

0

0

3

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

104.

The overall situation in the period 1997-1999 is very similar compared with that
presented in the Eighth Survey for the period 1996-1998. 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 and Ireland, grants are more often employed
than tax exemptions.

50

105.

106.

Aid in the form of State equity participation, classified under group B, represents
only 3% of all aid to the manufacturing sector granted in the European Union.
However, in one Member State, France, equity participation is relatively important.

Aid classified in group C encompasses loans at reduced interest rates and tax
deferrals. 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 Austria, Germany, Portugal and Sweden.

107.

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

Figure 8 State aid to the manufacturing sector in the Member States - distribution by
budgetary expenditure and tax foregone 1997-1999

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

108.

109.

Figure 8 gives a breakdown of aid to the manufacturing sector according to the mode
of financing. Budgetary expenditure, which is composed of grants, interest rate
subsidies, equity participation, soft loans and guarantees, is the preferred way of
financing aid in the European Union. This holds particularly for Greece, Spain,
Finland, Luxembourg, and the UK where all or virtually all aid is financed through
the budget. In contrast, tax foregone, i.e. tax exemptions and tax deferrals, is used to
the largest extent in Denmark, France and Ireland.

The evolution of patterns in the use of the various aid instruments does not become
evident for most Member States until a relatively long time span is considered.
Comparison between the two reporting periods covered by this Survey is not
sufficient. Therefore in order to identify the gradually changing distribution of aid
instruments the period from 1990 to 1999 is considered below and presented
graphically in Figure 9.

51

Figure 9 State aid to manufacturing –– percentage share by aid instrument 1991-1999

Guarantees

e
h
t
o
t
d
e
t
n
a
r
g
d
i
a

f
o
e
g
a
t
n
e
c
r
e
p
s
a

e
h
t
o
t
d
e
t
n
a
r
g
d
i
a

f
o
e
g
a
t
n
e
c
r
e
p
s
a

e
h
t
o
t
d
e
t
n
a
r
g
d
i
a

f
o
e
g
a
t
n
e
c
r
e
p
s
a

r
o
t
c
e
s
g
n
i
r
u
t
c
a
f
u
n
a
m

30

20

10

0

r
o
t
c
e
s
g
n
i
r
u
t
c
a
f
u
n
a
m

30

20

10

0

r
o
t
c
e
s
g
n
i
r
u
t
c
a
f
u
n
a
m

30

20

10

0

A

B DK D GR

E

FIN F

IRL

I

L NL

P

S UK

Tax deferrals

A

B DK D GR

E

FIN F

IRL

I

L

NL

P

S UK

Soft loans

A

B DK D GR

E

FIN F

IRL

I

L NL

P

S UK

1991

1993

1995

1997

1999

1991

1993

1995

1997

1999

1991

1993

1995

1997

1999

110.

As regards guarantees their use has decreased in all Member States and now account
for no more than 3% of aid to manufacturing compared with 8% during the period
1990-1992. Tax deferrals were never used to a great extent and they have represented
only 1% of EU manufacturing aid since 1990-1992. The only Member State that has
recently made avail of this instrument is the Netherlands. During the 1990’s soft
loans were used throughout the EU. The level of equity participation remained low
throughout the EU during the 1990’s. The only country where levels of equity
participation have consistently stayed above the EU average, is France. During
certain periods levels in Ireland and Italy were also above the EU average.

52

Figure 9 continued, State aid to manufacturing – percentage share by aid instrument
1991-1999

Equity participation

e
h
t
o
t
d
e
t
n
a
r
g
d
i
a

f
o
e
g
a
t
n
e
c
r
e
p
s
a

e
h
t
o
t
d
e
t
n
a
r
g
d
i
a

f
o
e
g
a
t
n
e
c
r
e
p
s
a

e
h
t
o
t
d
e
t
n
a
r
g
d
i
a

f
o
e
g
a
t
n
e
c
r
e
p
s
a

r
o
t
c
e
s
g
n
i
r
u
t
c
a
f
u
n
a
m

30

20

10

0

r
o
t
c
e
s
g
n
i
r
u
t
c
a
f
u
n
a
m

100

80

60

40

20

0

r
o
t
c
e
s
g
n
i
r
u
t
c
a
f
u
n
a
m

100

80

60

40

20

0

A

B DK D GR

E

FIN F

IRL

I

L NL

P

S UK

Grants

A

B DK D GR

E

FIN F

IRL

I

L

NL

P

S UK

Tax exemptions

A

B DK D GR

E

FIN F

IRL

I

L NL

P

S UK

1991

1993

1995

1997

1999

1991

1993

1995

1997

1999

1991

1993

1995

1997

1999

111.

Changes in the patterns of aid instruments are also found when considering grants
and tax exemptions. At the EU level, there has been a decrease in the share of tax
exemptions from 33 to 22% that has almost been matched by the rise in the share of
grants from 51 to 61%. However of note are the relatively important changes in
patterns that are found in some Member States. Belgium and Greece have increased
the share of grants at a faster rate than the EU as a whole, whilst Denmark, Ireland
and the Netherlands have in contrast with the overall EU trend, decreased the share
of grants. Given the relative stability in the use of other aid instruments in these
countries, the decreasing share of grants is matched by an increasing share of tax
exemptions. It is only in France where there appears to be an increase in the use of
both grants and tax exemptions.

112.

The reasons for these variations are due to important changes in policy in some
Member States,
the implementation of which requires the use of certain aid
instruments. Increases in tax exemptions in Denmark and the Netherlands are due to

53

the growing importance of CO2 emission tax schemes. In France the increase in the
share of tax exemptions over the past decade is due to their importance in the
implementation of R&D and Regional support programmes. However in Ireland the
apparent sharp increase in the use of tax exemptions does not reflect a change in
policy, only the inclusion of data on the ICT scheme since 1998. In regard to
Germany, the drop in the use of tax exemptions is due to the gradual discontinuing of
tax exemptions for investment purposes in the new German Bundesländer. Budgetary
expenditure therefore increased its relative share as overall aid amounts dropped in
Germany. On the EU level, the use of tax exemptions for schemes supporting SME’s
decreased sharply between 1990 and 1995.

2.5.

State aid given on an ad-hoc basis

113.

114.

115.

116.

The foregoing analysis of State aid data attempts to identify the medium and long-
term trends in the EU Member States and is based upon State aid granted by way of
schemes that promote horizontal, sectorial or regional objectives and State aid that is
granted ad-hoc, i.e. outside of such schemes. Since an analysis of aid that is granted
by the aid awarding authorities outside of pre-established schemes sheds a light on
other necessities of national State aid policy, an analysis of ad-hoc aid is presented
below. For completeness, reference is also made to ad-hoc aid in the air transport,
financial and other service sectors.

For the purposes of this analysis ad-hoc aid is split into four sub-categories. The
relatively high proportion that was granted for the purpose of restructuring in the new
German Bundesländer, ad-hoc aid that was granted in most other Member States for
the purpose of restructuring manufacturing capacity and, ad-hoc aid that is granted to
restructure various service industries. The fourth sub-category is ad-hoc aid granted
for horizontal objectives such as Research and Development and Environmental
protection.

Table 22 shows that the peak in ad-hoc aid to the new German Bundesländer was
reached in 1994 and since then has dropped considerably. A similar trend is found in
ad-hoc aid that was granted in other Member States to certain sections of their
respective manufacturing industries. In so far as ad-hoc aid to services is concerned
the trend in aid used for the restructuring of certain companies in the air transport
sector also followed historical cycle similar to that followed in manufacturing. Only
ad-hoc to financial services is lagging behind the above mentioned cycles and this
may be explained by the relatively recent liberalisation of this sector. The fourth sub-
category, ad-hoc aid granted for Research and Development and Environmental
protection, shows a gradual increase between 1992 and 1996 at which stage it
levelled off in absolute Euro terms. This use of ad-hoc aid to finance horizontal
objectives may be a result of administrative practice in some Member States rather
than reflecting changes in their respective State aid policies.

Historically the bulk of ad-hoc aid was granted for the purpose of the enormous
restructuring programme that was carried out in the new German Bundesländer and
for the rescuing or restructuring of companies and large industrial conglomerates in
other Member States. These activities continue, albeit at a very much lower level and
with the exception of further restructuring in the shipbuilding sector, decreases
should continue to be seen in the near future. Ad-hoc aid granted to the financial
services sector for rescue and restructuring reached its peak in 1998 and dropped

54

117.

118.

sharply thereafter. A relatively small amount of ad-hoc aid was granted in the media
sector in 1997 and 1998.

is granted for

A growing proportion of ad-hoc aid is not granted for rescue and restructuring. The
the horizontal objectives R&D and
share of ad-hoc aid that
Environmental protection is gradually increasing and reached approximately one
third of all manufacturing ad-hoc aid outside of that granted in the new German
Bundesländer in 1999. This type of ad-hoc aid also accounts for 100% of all ad-hoc
granted in the Netherlands and reflects the administrative policy in this country of
not always setting up schemes as a mechanism to support horizontal objectives. For
example aid granted to Eureka projects is not covered by any scheme in the
Netherlands. And in contrast with some other Member States, the Netherlands clearly
does not have a policy to rescue and restructure ailing firms. Aid targeted in this
country towards horizontal objectives is granted to firms to encourage their R&D
efforts and continually reinforce their competitive position.

Data presented in the Seventh and Eighth 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 22, ad-hoc aid
decreased from 11% of manufacturing aid in 1994 to 1.7% in 1999. If the above-
mentioned aid to the new German Bundesländer is added, the drop is slightly greater,
falling from 37% in 1994 to 4.7% in 1999. Total ad-hoc aid has decreased in the
same period from

18 billion to

1.9 billion.

€

€

55

Table 22 State aid on an-hoc basis awarded in the manufacturing (including Treuhand),
and services sectors in the Community 1993-1999

1993

1994

1995

1996

1997

1998

1999

€

million

% of
total
mfr
*aid

€

million

% of
total
mfr
aid

€

million

% of
total
mfr
aid

€

million

% of
total
mfr
aid

€

million

% of
total
mfr
aid

€

million

% of
total
mfr
aid

€

million

% of
total
mfr
aid

4829

11

4569

11

3438

9

3178

9

3433

10

1400

5

362

1.7

45

94

144

186

185

115

120

8682

20

10789

26

6550

17

4742

14

3554

11

2346

9

637

3

43747

40851

38749

35039

33537

27559

21592

806

113

514

1002

4877

3246

5150

939

2447

2390

1404

9

9

1238

250

42

99

14430

18319

13389

14210

11721

9037

1939

Ad-hoc aid to
manufacturing

of which ad-
hoc aid for
R&D/Environ

Treuhand
aid**

Total aid to
manufacturing

Ad-hoc aid to
financial
services

Ad-hoc aid to
air transport

Ad-hoc aid to
other services

Total
ad-hoc aid for
mfr/services

* mfr: manufacturing.
** Aid in Germany given via the Treuhandanstalt (THA) or the Bundesanstalt für vereinigungsbedingte
Sonderaufgaben (BvS).

119.

€

Table 23 below compares the annual averages of ad-hoc aid during the periods 1995-
1997 and 1997-1999. Data are presented for the manufacturing sector, including aid
for restructuring in the new German Bundesländer and certain service sectors. Ad
8.3 billion in the previous period to
hoc aid for manufacturing has dropped from
4 billion in the current reporting period. On the level of Member States, small
under
increases are seen in Belgium, Greece and Finland due to single ad-hoc cases in each
country in 1998. The increase seen in France is due to a single case in shipbuilding
and, in the Netherlands, there has been an increase in R&D spending. Decreases are
seen in all other Member States.

€

120. With the exception of Greece, Finland and the Netherlands, where levels of ad-hoc
aid for manufacturing are either very low or explained by support given to R&D,
levels of ad-hoc aid are for the first time decreasing in the majority of Member
States. This is true not only when comparing the two reporting periods, but also
considering 1999 when levels of ad-hoc aid dropped to historic lows in almost all
Member States.

121.

Over the two reporting periods overall EU ad-hoc aid for services has also dropped
albeit
less dramatically than in manufacturing. On the level of Member States,
increases are only seen in Austria. When considering the 1999 levels of ad-hoc aid to
services, levels dropped in all Member States with respect to 1998.

56

122.

As regards the aid instruments that are used when ad-hoc aid is awarded in the
manufacturing sector, grants make up approximately half of all such aid. Soft loans
and equity participation/capital injection account for 31% and 16% respectively,
whilst the use of guarantees appears to be low at about 6%. In the service sector the
bulk of aid is granted by way of capital injections.

123. Whilst the impact of ad-hoc aid on overall manufacturing aid is diminishing, when
comparing Table 23 with Table 7, the effect of ad-hoc aid on aid to manufacturing
can still be seen. Of the overall
8 billion decrease seen in Table 7, over half is due
to the
4 billion-plus reduction in ad-hoc aid. In 1999, the last year of the current
reporting period ad-hoc aid accounted for just 4,7% of manufacturing aid in the EU.

€

€

Table 23 State aid on an-hoc basis awarded in the manufacturing (including Treuhand),
and services sectors in the Member States - annual averages 1995-1997 and 1997-1999

Manufacturing
Million

In

€

Services

€

In

Million

Austria

Belgium

Denmark

Germany

of which Treuhand

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden

United Kingdom

Total

1995-1997

1997-1999

1995-1997

1997-1999

49

8

5421

4949

<0.5

1079

0

575

18

1071

47

31

10

8

2396

2179

8

483

1

667

0

246

75

17

2

4

270

418

3230

24

624

144

2845

0

590

240

72

8299

3911

4808

3655

57

PART III – AID TO AGRICULTURE

124.

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 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.

Table 24 presents average annual budget outlays including direct payments,
reduction of input costs and general services at Community level.

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 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.

125.

126.

58

Table 24 State aid to Agriculture in the Member States in percent of GDP, annual
averages 1995-1997 and 1997-199928

In percent of GDP

In million Euro

1995-1997

1997-1999

1995-1997

1997-1999

Austria

Belgium

Denmark

Germany

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden

United Kingdom

EU 15

0,67

0,12

0,18

0,12

0,16

0,25

1,71

0,28

0,16

0,15

0,22

0,28

0,22

0,14

0,13

0,22

0,53

0,11

0,15

0,09

0,14

0,22

1,28

0,24

0,21

0,15

0,19

0,33

0,30

0,16

0,11

0,18

1.216

247

262

2.223

162

1.198

1.780

3.488

101

1.509

32

913

208

275

993

247

239

1.664

157

1.173

1.468

3.063

166

1.630

32

1.167

301

334

1.597

15.210

1.349

13.981

28

Data taken from “Agricultural Policies in OECD Countries. Monitoring and evaluation 1999 and, 2000”
(OECD 1999 & 2000) and expressed in 1998 constant

values.

€

59

127.

128.

129.

130.

131.

PART IV – AID TO FISHERIES

In the fisheries sector, the grant of national aid closely follows the development of
and the limits opposed by the Common Fisheries Policy (CFP), thereby contributing
to the realisation of common objectives. Any conclusion to be drawn from the
quantification of national 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.

is,

The fisheries market
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 CFP. This requires that
action in the sector comply with the objective of establishing a balance between
is in
stocks and their exploitation. State aid is only justified,
accordance with the objectives of this policy.

therefore,

if it

State aid rules in this sector result from the development of the CFP. 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 2792/99.29 In parallel with the development of the
CFP, guidelines for the examination of State aid to fisheries have been developed. It
is within this framework established by these guidelines that
the Commission
administers the derogation to the principle of incompatibility of State aid with the
common market (Article 87(1) 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 have been renewed30.

These rules relate to all measures entailing a financial advantage, in any form
whatsoever, funded directly or indirectly from the budget of public authorities
(national, regional, provincial, departmental or local). State aid may be granted only
if it is consistent with the objectives of the CFP. Aid may not 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 therein.
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.

29

30

OJ L 337 of 30.12.1999 page 10
OJ C 19 of 20.01.2001 page 7.

60

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.

132.

Table 25 provides an overview of the average levels of aid granted by Member States
to this sector during the two periods 1995-1997 and 1997-1999. Table 25 also
presents the same figures as a percentage of value added calculated on the basis of
quantities landed and average prices, whilst Table 26 shows Community intervention
in favour of the Community’s fishing fleet, the commercialisation and first-stage
processing of the products.

61

Table 25 State aid to fisheries in the Member States in percent of value added in this
sector, calculated on the basis of quantities landed and average prices- annual averages
1995-1997 and 1997-1999 in constant prices (1998)

In percent of value added*

In million Euro

1995-1997

1997-1999

1995-1997

1997-1999

Austria

Belgium

Denmark

Germany

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden

United Kingdom

EU 15

-

1,8

2,3

9,0

1,8

2,3

12,1

3,9

7,0

8,1

-

1,5

0,9

7,9

3,5

4,1

-

5,4

2,0

12,3

7,4

3,0

8,9

2,6

6,8

9,8

-

1,5

0,7

7,9

4,0

4,3

-

1,5

9,9

14,5

6,2

46,6

3,0

32,7

13,3

94,5

-

5,7

2,5

8,5

-

4,7

9,3

19,2

20,9

57,6

1,8

24,6

13,4

81,0

-

5,0

2,1

8,9

33,2

271,9

33,5

281,8

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

Table 26 Community interventions in the fisheries sector in the framework of the
common organisation of the market and structural policy 1995-1999

€

Million

1995

1996

1997

1998

1999

Guarantee

Guidance

42,0

518,2

35,6

498,8

34,3

401,2

21,2

502,7

21,3

746,3

62

PART V – AID TO COAL MINING

133.

134.

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

Under the terms of this Decision, inherited liabilities are an intrinsic part of the
authorisation process and appear in the text of various Commission Decision
authorising aid. Social welfare schemes do not normally appear in decisions.
Therefore inherited liabilities are included in the Commission’s annual reports on
coal aid, whereas social aid is not included.

135.

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 31st 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 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 ECSC of the Treaty, must be modified
by 31 December 1996” to bring them in to 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.

The Commission Decision enables 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

further

136.

137.

138.

63

139.

140.

141.

142.

143.

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.

Table 27 presents figures on aid to coal mining not destined to current production.
Aid granted for this purpose fell from a annual average of
2.220 million per year
during the first period to an annual average of
2.016 million during the second
period. This drop is entirely due to decreases in the UK, the only Member State
where coal production costs are close to international market prices.

€

€

€

€

Table 27 also presents figures on aid that is destined to current production. These
figures are expressed in Euro per person employed in the coal sector and as the share
of the total aid to the sector. The trend in aid to current production per person
employed increased in Germany, Spain and France from
43.537 in the previous
period to
47.887 in the current reporting period. Aid to current production has not
been given in the UK since 1994. In spite of continuing gradual reductions in the
absolute levels of this type of aid in Germany and Spain, the increasing trend in aid
per person employed is due to the proportionately smaller number of coal workers. In
France where the number of coal miners also dropped, aid to current production
increased by more than twofold. Nevertheless, 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”.

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 27 cannot reflect this situation. However, the abolition of this
reference price system is one of the explanations for the apparent recent increase in
aid to Spanish production.

For coal, the observed aid amounts are high. While competition is essentially with
imported coal, the 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.

immediately. However,

The Commission is fully aware that,
in the absence of substantial financial
assistance, the coal industries of France, Germany and Spain would be forced to
close almost
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 Commission report:31 “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

31

Report from the Commission on the Application of Community Rules for State Aid to the Coal Industry
in 1996 and 1997. COM (1999) 303 final of 9 September 1999.

64

144.

145.

146.

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.”

As emphasised in the latest annual report from the Commission on the application of
Community rules for State aid in the Coal industry,32 these aid mechanisms have not
managed to provide an answer in economic terms to the structural crisis facing the
European coal industry. The improvements made to production costs have not been
sufficient in the light of the coal prices operated on the world market. Indeed, the
production costs in non-EU member countries have also been reduced through the
introduction of more advanced technology in geological conditions which are clearly
more favourable than those encountered by European producers. The competitive
imbalance has not been compensated; on the contrary, it has even increased. In the
absence of any practical prospect of a return to a stable and profitable European coal
industry, the idea has gained ground that State aid ought to be considered as support
to areas and social groups that are lagging behind, rather than a strategy for economic
development.

aid

these

programmes

function of

This growing awareness, in a context in which public expenditure is being cut, has
provoked a critical examination of the future of policies implemented by the Member
States, particularly regarding their high cost. In other words, while the social and
regional
their
cost-effectiveness has been progressively questioned. Modern theories about State
instruments which are less
intervention in the economy now favour other
burdensome and which, above all, offer better prospects, at least in the medium term,
for the development of the social groups concerned. Indefinitely supporting an
industry in irreversible decline is a choice, which is being increasingly questioned,
both within governments and by the public. What
the effect on the
is more,
environment of aid to the coal
industry is also being increasingly questioned,
particularly on account of the obligation to reduce the emissions of greenhouse gases
in order to comply with the Kyoto Protocol.

recognised,

been

has

The governments concerned have decided to limit, both in quantity and in time, their
public aid, according to different timetables and procedures. The process may be
regarded as finished in the case of Belgium and Portugal, coming to a close in France
and is rapidly changing in the United Kingdom, where efforts to achieve
competitiveness with imported coal are being pursued. Even Spain and Germany,
which have adopted a more gradual approach, have put forward more rigorous plans
for restructuring.

32

Report from the Commission on the Application of Community Rules for State Aid to the Coal Industry
in 1998 and 1999. COM (2000) 380 final/2 of 20 November 2000.

65

Table 27 State aid to coal mining 1995-1997 and 1997-1999 in constant prices (1998)

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

1995-1997

1997-1999

Yearly average of aid destined to current
production

€

per
employee

1995-1997

1997-1999

% of
total aid

96%

72%

22%

€

per
employee

61.939

34.994

34.899

% of
total aid

91%

66%

38%

Germany

Spain

France

Portugal

434,5

367,4

58.453

29.799

610,1

12.806

207,9

298,3

604,8

0,6

United Kingdom

1.108,5

603,9

Total

2.220,2

2.016,0

43.537

73%

47.887

73%

66

147.

148.

149.

150.

151.

152.

PART VI – AID TO THE TRANSPORT SECTOR

The Commission has to deal with three areas of common (or integrated) policy under
the EU Treaty, one of which is transport. This was recognised by a specific
possibility for the acceptance of sectorial State aid within the context of the common
transport policy, which considers that State aid is a policy instrument assisting in the
pursuit of its objectives.

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.

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 these.

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. As 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, strict control is called for over such aid. It is, on the
other hand, also necessary to ensure that such control does not inadvertently frustrate
the objectives of the Common Transport Policy.

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 in to account not
only the general State aid requirements of the Treaty, but also the Treaty articles
the Commission takes into
dealing specifically with transport. In doing this,
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.

To strengthen its control, the Commission adopted strict guidelines33 in 1994 on
State aid to the air transport sector that reinforce, in particular, the one-time-last-time
principle for
in financial difficulty. Further
improvements to 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

restructuring aid to companies

33

Application of Articles 87 and 89 of the EC Treaty and Article 61 of the EEA Agreement to State aids
in the aviation sector (OJ C 350 of 10.12.1994, page 5).

67

sector (Regulation (EEC) 1107/7034 and Regulation (EEC) 1191/9035) to make these
clearer and more systematic.

153.

The situation in each of the very different European transport modes is presented
below. A summary of the decreasing level of State aid in this sector since 1995, the
bulk of which is given to railways as compensation for public service obligations, is
given in Table 29.

6.1.

Railways

154.

155.

In 1996, the Commission adopted a white paper on a strategy for revitalising the
Community’s railways, which also deals 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 28 shows aid and other compensation to railways as a percentage of
value added in this sector.

Aid levels expressed as a percentage of value added have dropped in twelve Member
States. Note that as 1999 figures for value added were not available, estimates were
used and 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, also changed the financing methods.
The Commission has a positive attitude towards public and private investments in
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 line, one of 14 projects
recognised as having priority in the development of the trans-European networks.

34

35

COM(2000)5
COM5200)7

68

Table 28 State aid to railways in the Member States in percent of value added in inland
transport services 1995-1997 and 1997-1999

1995-1997

1997-1999

In percent of
value added

of which
Regulation
1191/69

In percent of
value added

of which
Regulation
1191/69

13,9

48,5

9,4

13,7

7,8

1,4

13,2

45,9

9,2

12,9

7,2

5,3

42,07

16,22

36,39

15,83

17,4

17,2

1,4

25,4

19,5

19,3

18,5

17,6

3,7

27,7

11,2

27,3

2,9

1,2

5,8

12,9

2,3

13,8

2,0

2,7

1,2

10,3

9,1

21,6

14,3

1,1

23,9

16,7

16,7

43,8

19,1

2,5

21,6

9,7

25,1

2,7

1,0

5,8

10,3

2,1

21,5

3,0

1,4

1,5

9,4

8,8

Austria

Belgium

Denmark

Germany

Greece

Spain

Finland

France

Ireland

Italy**

Luxembourg***

Netherlands

Portugal

Sweden

United Kingdom

EU 15

* 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 1997, 1998 and 1999. They were estimated to equal
those of 1996.
*** A large proportion of aid is granted for pensions.

6.2.

Air transport sector

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 within this new context, many airline
companies have set major restructuring programmes. Aid, mostly ad-hoc, that was
granted to the air transport sector peaked in 1994 and has since dropped back. The
€
average yearly amount for 1995-1997 was
1,677 million and for the latest reporting
427 million. No aid was granted in 1999. These
period, 1997-1999, the average is

€

69

figures confirm the transient nature of support to airlines, as stated in previous
Surveys.

6.3.

Maritime transport

156.

157.

€

Total annual aid authorised by the Commission under the previous guidelines, during
the period under review, was
1014 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.

€

In mid-1997, a new State aid discipline was introduced for maritime transport.36
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
interferes with normal business decision-making in
restrictive line on aid that
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 with, in particular, the terms of Council Regulation 3577/92 on maritime
cabotage rights. In the field of seaports, the Commission continues to examine public
financing undertakings providing port services.

6.4.

Inland waterways

158.

159.

160.

During the period 1996-1999, the inland waterways sector could exploit a regulation
(Council Regulation 2255/96) that allowed, under certain conditions, aid if it
concerns investment in infrastructure of inland waterway terminals or in fixed or
the
mobile equipment for trans-shipment from and to waterways. To this end,
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.

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

Concentrated in six Member States (Austria, Belgium, France, Germany,
Netherlands and Luxembourg),
€
averaging some
from an average of

the
levels of aid in this sector are extremely low,
20 million per year during the period 1997-1999 having decreased
€

32 million per year during the period 1997-1999.

6.5.

Combined transport

161.

Article 3(1)(e) of Council Regulation 1107/70, allowed, until 31 December 1997,
State aid for combined transport equipment and infrastructures. Council Regulation

36

Community guidelines on State aid to maritime transport (OJ C 205 of 05.07.1997, page 5).

70

162.

163.

(EC) 543/97 exempted Member States, from 1 January 1996 to 31 December 1997,
from notifying 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 period covered by the Survey, notifications were received from Austria,
Italy, the Netherlands and the United Kingdom relating to aid for combined transport
and trans-shipment equipment and to aid for construction of terminals. Whilst the
level of aid appears to be relatively low in this sector, the actual amount given for
combined transport may be slightly higher as the notification obligation only applied
from 1998.

Furthermore, some Member States give aid to promote combined transport under
Regulation 1191/69 (i.e. notification of aid measures is not required.). For instance, it
is estimated that Austria paid the Austrian Railways, ÖBB, from 1995 to 1998 circa
€
80 million per year for its services rendered in the field of combined transport.
Other Member States considered that State support for the construction of privately
operated combined transport terminals were public measures in the field of publicly
accessible infrastructure funding and, thus, did not represent State aid which had to
be notified. For example, Germany provided a budget as of 1998 amounting to
20
million in that year, for the construction of privately owned and run combined
transport terminals.

€

6.6.

Road transport

164.

Since 1990, when the opening up of the national road transport market (cabotage)
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 negative decisions concerning two schemes introducing tax
credits for professional road hauliers. Until 1999, aid expenditure, as indeed the
overall number of cases, remains comparatively low and no particular trends can be
identified from the data at hand. The increase in 1999 is due entirely to a single case
in Italy.

71

Table 29 State aid to the transport sector in the Community - annual values 1995-1999

€

Million

1995

1996

1997

1998

1999

Railways

35.752

33.868

31.333

32.018

31.264

of which Regulation 1191/69

10.898

10.564

11.047

11.181

10.963

Airline Services

Maritime Transport

Inland Waterways

Road/Combined Transport

2390

1404

1238

414

23

4,3

300

46

4,5

300

28

1,6

42

-

26

4,7

0

-

7

73

72

PART VII – AID TO OTHER SERVICE SECTORS

7.1

Aid to the Financial Services Sector

165.

166.

The 1990’s were characterised by a profound modification in the European banking
sector. Following the adoption of European banking directives, the legislative and
regulatory framework of national banking systems underwent important changes.
The institutional separation between the establishments and the operational
constraints progressively fell away, the markets opened up, technological advances
offered new commercial opportunities and competitive pressures
increased
throughout Europe. The necessity for many banks and the banking sector to
restructure became more urgent because of the economic crisis in the early 1990’s.
The delay in adapting to the new banking environment, notably by public banks, led
to dramatic consequences. Some banks in certain Member States, as in France and
Italy, went through deep crises, which are partly reflected in the figures below.
Banks in other European countries went through similar crises, but prior to their
acceding to the Union.

€

€

3.257 million in 1995-1997 to

A constant increasing trend was observed from 1993 to 1998. Aid was granted to the
financial services sector by way of specific schemes or for rescue and restructuring in
France, Germany, Ireland, Italy and Portugal. Its level has risen from an annual
average of
3.367 million during the current
reporting period. However it should be noted that these three-year averages hide the
increase in aid levels that reached a peak in 1998 and the dramatic year-on-year drop
between 1998 and 1999. The level of aid granted to this sector increased during the
€
5.500 million in 1998. In 1999 the level
1990’s until reaching a peak of nearly
dropped to
1.125 million. The grant of aid will continue to be recorded in the future
for some Member States as a consequence of the chosen aid mechanism, which
spreads the overall budgetary impact of the public support over a large number of
years. On the other hand, in 2000 the Commission dealt with no cases in this sector
and it now appears that the major restructuring operations that were undertaken in
France and Italy are reaching completion.

€

167.

A large, albeit gradually decreasing, fraction of aid to this sector is almost entirely
destined for major restructuring in France and Italy 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.

168. Whilst in comparison with other sectors, the overall levels of aid are not massive, the
importance of aid in this sector is due to the fact that the bulk of the aid is ad-hoc aid
granted to a small number of companies. For this reason 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 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 in to consideration. Given the solvency
requirements that are imposed by European banking regulations, credit institutions’
capacity for growth is limited. Until such time that banks can either attract new
capital or increase their own capital by way of increased profits, their room for
manoeuvre is limited by the Community solvency ratio.

73

169.

As a result 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.
Moreover
financial
intermediaries tend to be highly interconnected via equity participation with other
sectors of the economy. State aid granted to banks might therefore not only distort
competition in the financial service sector but also generate distortive spillover
effects into other economic sectors.

in continental Europe, banks

in particular

and other

Table 30 State aid to the financial services sector in the Community - annual values
1995-1999

€

Million

France

Germany

Ireland

Italy

Portugal

Total

1995

1996

1997

1998

1999

1002

143

36

0

2

3678

144

35

1199

3

3214

4193

143

137

32

1

142

151

957

7

800

0

168

139

18

1183

5059

3528

5450

1125

74

7.2

Aid to Tourism, Media and Culture

170.

171.

172.

Member States provide support to the tourism, media and culture sectors by way of
SME and regional aid schemes. Support to these sectors is also provided by way of
specific programmes that are targeted exclusively to one of these sectors. The
Commission has generally approved these specific programmes under either the
SME or regional guidelines. Figures on the aid levels of these specific programmes
are given below in Table 31.

Italy maintains a large number of specific programmes that support tourism and
which account for about 58% of the total expenditure reported below. Twelve other
Member States each maintain specific programmes that account for less than 1% to
13.5% of the expenditure.

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 United Kingdom
data reflect aid given for television.

173. Whilst grants account for 95% of all aid given by way of specific tourism schemes,
with soft loans making up almost all of the remainder, the use of grants and tax
exemptions account for 81% and 4.7% of all aid given by way of specific media and
culture schemes. A further 13% of the aid is granted by way of capital injections.

75

Table 31 State aid to tourism, media and culture in the Member States by way of
specific programmes 1995-1997 and 1997-1999

€

Million

Tourism

Media and Culture

1995-1997

1997-1999

1995-1997

1997-1999

Austria

Belgium

Denmark

Germany

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden

United Kingdom

EU 15

31,7

8,1

9,4

19,5

0,01

32,2

0,8

204,1

35,4

7,3

7,4

59,0

0,02

21,2

8,5

0,4

253,0

42,4

33,2

12,3

361

10,3

436

4,5

15,2

8

21,4

7,2

234,4

4,2

105,5

21,9

18,2

77,5

241,2

759

5,0

18,8

3,7

2,4

24,3

13,8

309,7

12,3

62,8

2,0

31,4

8,6

95,1

247,5

837

76

174.

175.

176.

177.

PART VIII – AID FOR EMPLOYMENT AND TRAINING

Incentive schemes exist in all Member States to stimulate or facilitate employment
and training. Insofar 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 199537 and 199838 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 schemes that specifically target employment and training and that
contain State aid are presented in Table 32 below. It has to be pointed out that the
figures for the beginning of the period 1995-1997 are incomplete for some countries,
overall totals are therefore, indicative only. In future this situation will improve. In so
far as the current
reporting period is concerned relatively high amounts of
employment aid are granted in Germany, Spain and Italy and training aid in
Denmark has increased. The United Kingdom accounts for more than 50% of all EU
training aid.

The figures in Table 32 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 specifically for these objectives at all, twelve
of the other Member States support employment and nine support training. Of
course, it can be taken for granted that all Member States foster employment through
general labour market measures and training through general measures.

178.

Employment aid is provided by way of grants and tax exemptions accounting for
80% and almost 20% of all such aid, whilst grants account for almost 99% of
training aid.

37

38

Guidelines on aid to employment OJ C 334 of 12.12.1995.
Framework on training aid OJ C 343 of 11.11.1998.

77

Table 32 State aid for Employment and Training in the Member States by way of
specific programmes 1995-1997 and 1997-1999

€

Million

Employment

Training

1995-1997

1997-1999

1995-1997

1997-1999

Austria

Belgium

Denmark

Germany

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden

United Kingdom

EU 15

26,0

99,4

73,4

77,5

98,7

60,9

38,3

53,4

40,5

0,8

88,5

142,7

18,5

101,4

92,0

148,4

9,0

61,9

68,5

29,6

145,3

38,3

119,1

421,4

599,4

45,3

6,0

85,8

219,5

0,03

34,5

10,7

46,9

25,9

0,03

21,4

74,5

50,3

963,7

1722

71,0

19,4

1255,2

2180

800

881

78

PART IX – A VIEW OF THE YEAR 2000

179.

During the year 2000, the European Commission took ten decisions on ad hoc cases
that were registered in the same year. Of these ten cases, three were considered as not
constituting State aid. The total amount of aid granted by way of the remaining seven
cases amounts to approximately
50 million. The Member States granting this ad hoc
aid in 2000 are listed in the following Table 33.

€

Table 33 Ad hoc cases by Member State in 2000

Member State Number of cases Amount (Mio

€
)

Belgium

Germany

Spain

France

Italy

The Netherlands

Total

1

2

1

1

1

1

7

0,7

13,9

9,3

11,6

0,6

13,6

49.7

180.

Table 34 below shows the sectorial distribution of these ad hoc cases. The
11.6 million, while the shipbuilding sector,
manufacturing industry has 1 case for
€
with only 2 cases, has received more than

26 million.

€

Table 34 Ad Hoc cases by sector in 2000

Sector

Number of cases Amount (Mio

€
)

Energy distribution

Industrial machinery

Manufacturing industry

Shipbuilding

Steel

Total

9,3

1,1

11,6

26,4

1,3

49.7

1

1

1

2

2

7

79

181.

An analysis of this ad hoc aid according to objective is given below.

Table 35 Ad hoc cases by objective in 2000

Objective

Aid for R&D

Development aid (shipbuilding)

Environmental aid

Regional aid

Restructuring aid

Sectorial aid

Total

Number of cases Amount (Mio

€
)

1

1

1

2

1

1

7

0,7

12,8

0,6

20,9

1,1

13,6

49,7

%

1,5%

25,7%

1,2%

42,1%

2,3%

27,3%

100%

182.

the total pertaining to new cases approved in 2000 is
It will be noted that
considerably less than the total amount of ad-hoc aid that was granted in 1999 (see
Table 22). Nevertheless the final total for 2000 will be a little higher as residual
amounts for ad-hoc aid approved prior to this year will be included.

80

PART X – RETROSPECTIVE

10.1

Overview

183.

€

Over most of the past 10 years overall levels of State aid have remained within a
relatively narrow band around
100 billion and it is only in 1999 that levels finally
€
dropped below
80 billion. This chapter will provide a brief analysis of the principal
changes in trends and patterns throughout the EU over this period and identify the
most important changes that have taken place in each Member State that have led to
this decrease. Firstly the graph below gives an overview of the changing levels in
State aid granted since 1990.

Figure 10 Overall State aid in the European Union 1990-199939

o
r
u
E

f
o
s
n
o

i
l
l
i

m

120.000

100.000

80.000

60.000

40.000

20.000

0

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

184.

185.

Figure 11 below shows the shares of overall State aid that is directed towards the
main sectors, Agriculture and Fisheries, Manufacturing, Rail Transport and other
aided sectors. The share of manufacturing decreased in the latter half of the 1990’s
particularly as aid levels in Germany and Italy dropped. On the other hand, the share
of aid granted to railways increased between 1990 and 1999.

Figure 12 gives a breakdown of the objectives targeted when aid is granted to the
manufacturing sector. The importance of horizontal objectives has recently grown
whilst
the share of aid given to particular manufacturing sectors has gradually
decreased. A peak in the share of regional aid was reached in the mid-1990s.

39

Data for Austria, Finland and Sweden have been included since 1995 when these three countries joined
the European Union. If these data were discounted from the totals, the EUR-12 downward trend would
be greater.

81

Figure 11 The shares of overall State aid directed towards Agriculture and Fisheries,
Manufacturing, Rail Transport, Coal and other aided sectors 1990-1999

100%

80%

60%

40%

20%

0%

Others

Coal

Rail transport

Manufacturing

Agriculture
and fisheries

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

Figure 12 Share of Aid for Horizontal objectives, particular sectors and regional
development granted to the manufacturing sector 1990-1999

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Horizontal
Objectives

Particular
sectors

Regional aid

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

186.

Aid to the manufacturing sector and granted in the form of horizontal objectives can
support various activities. A breakdown of horizontal aid granted to manufacturing
and aid to combat employment and support training is given below in Figure 13. The
largest variation is aid granted for rescue and restructuring where very recently a

82

steep decrease has been observed. On the contrary aid, for R&D, environmental
protection and energy saving and SME’s has increased.

Figure 13 Share of horizontal aid objectives as a proportion of all horizontal aid

s
e
v
i
t
c
e
j
b
o

l
a
t
n
o
z
i
r
o
h
o
t
d
i
a

e
t
a
t
s
l
a
t
o
t

f
o
e
g
a
t
n
e
c
r
e
p
s
a

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Research and
Development

Environment and
Energy saving

SME

Other objectives

Rescue and
Restructuring

Combat unemployment
and Training aid

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

187.

The contribution of services to the European Union’s economy has gradually
increased since 1990. The air transport and financial sectors have moreover been
liberalisation processes. Whilst absolute levels of aid
subject
specifically directed towards services (excluding rail transport) are not as large as
those granted to manufacturing aid, Figure 14 shows the changing patterns in aid that
is granted to service sectors.

to important

Figure 14 State aid to services, other than rail transport, in the EU

1 0 0 %

8 0 %

6 0 %

3 1 ,4

3 7 ,5

6 0 ,6

1 ,0

7 9 ,3

1 6 ,1

1 7 ,5

1 5 ,7

2 0 ,2

2 8 ,8

1 6 ,7

2 5 ,1

4 0 %

2 ,8
0 ,0

5 4 ,1

4 3 ,6

5 9 ,7

5 1 ,2

6 1 ,3

4 8 ,8

7 1 ,8

2 0 %

3 6 ,7

0 %

2 ,2
0 ,0

1 8 ,5

5 ,1

1 3 ,8

1 3 ,4

1 7 ,6

1 7 ,6

7 ,5

6 ,2

5 ,4

4 ,8

1 ,0

7 ,1

4 2 ,7

3 9 ,7

2 ,8

1 4 ,8

M e d ia , c u ltu r e
a n d s e rv ic e s

F in a n c ia l
s e rv ic e s

T ra n s p o rt

T o u ris m

1 9 9 0

1 9 9 1

1 9 9 2

1 9 9 3

1 9 9 4

1 9 9 5

1 9 9 6

1 9 9 7

1 9 9 8

1 9 9 9

83

10.2

Country analysis

10.2.1 Austria

Since acceding to the Union in 1995 with Finland and Sweden, overall levels of aid
in Austria have dropped by approximately 20% with the largest absolute decrease
being seen in agriculture. Amounts of aid granted to manufacturing have also
gradually decreased since 1997. Since 1995 regional aid has increased by over 50%
and aid granted to service sectors including railways has remained fairly stable. In
terms of shares of total aid, aid to agriculture has fallen whereas the shares of the
other above-mentioned areas have all enjoyed small increases.

10.2.2 Belgium

During the last ten years Belgium has witnessed the disappearance of the coal and
shipbuilding industries, a significant reduction of the steel industry and restructuring
of the air transport sector. During the same period the overall level of aid has
decreased by one third. In terms of aid amounts, support to agriculture gradually fell
until 1999 when there was an increase to almost 1993 levels. Aid to manufacturing
also fell until 1997 and then rose slightly. However its level in 1999 was still some
44% down on 1990. Levels in 1999 of horizontal aid are slightly up on 1990 levels
In contrast, aid
given the significant
supporting rescue and restructuring is falling quickly. Aid to assist
regional
development was reduced in the early 1990s, whilst aid for railways, which in 1999
accounts for approximately two thirds of all Belgian aid, has increased. Agriculture’s
share of overall aid has remained relatively constant at around 9%, whilst the share
of aid for manufacturing has dropped slightly from approximately 25% to 22%. The
share of marginal amounts of aid, targeted specifically towards services, has also
dropped.

increase in aid directed towards R&D.

10.2.3 Denmark

In absolute terms aid in Denmark has increased and in 1999 was some 50% higher
than in 1990. However this overall increase hides important changes in the patterns
of Danish aid. Aid for agriculture and fisheries has dropped considerably whilst aid
for manufacturing has almost doubled. Aid to railways increased from 1990 until
1993 before dropping back to a relatively low level in 1998 only to increase again in
1999. Amounts of aid granted to the service sectors have gradually increased since
1990. The increase in manufacturing aid is due to the considerable resources devoted
to environmental protection and energy saving, whilst regional aid increased slowly
until 1995 when its level stabilised. There has also been a significant increase in aid
for training and to combat unemployment. The shares of aid to agriculture and
fisheries have dropped, whereas the small share of regional aid has remained stable.
On the other hand, the share of aid to manufacturing has increased from less than
20% in 1990 to nearly one half in 1999. Of note is the total lack of rescue and
restructuring aid and the long-term decline in the share of shipbuilding aid.

10.2.4 Germany

The history of State aid in Germany since 1990 was predicated by the enormous
investment made in the new German Bundesländer. With the exception of horizontal
aid, all other aid objectives peaked between 1992 and 1994. Agricultural aid was, in

84

1999, two thirds of its level in 1990. Aid to manufacturing peaked in 1994 and by
1999 had been reduced to 1990/1991 levels. Aid for railways increased from 1990
until 1994 and then decreased in 1999 to levels seen in 1992/1993. The only area
where there has been a consistent long term decrease in aid is in coal mining. Whilst
still accounting for about 20% of all German aid, absolute amounts of aid for coal
mining have decreased each year since 1990. Aid for the support of service sectors
peaked in 1995 mainly due to support given to the airline services sector. The shares
of overall aid to agriculture and fisheries have decreased as well as the share of aid
for coal mining. In contrast, between 1990 and 1999 the shares of aid granted to
railways, manufacturing and services have increased.

10.2.5 Greece

With the exception of aid for railways and fisheries, it appears that the overall
amounts of aid granted for most sectors and objectives in Greece have declined over
the whole period. The share of aid to agriculture, fisheries and manufacturing has
decreased significantly, whilst
the share of aid to the rail transport sector has
increased and in 1999 represented 47% of overall national aid. Restructuring of this
country’s shipbuilding and steel industry took place in the first and second half of the
decade respectively.

10.2.6 Spain

Over ten years aid expenditure in Spain has shown a very slight decrease. Data on
absolute aid amounts granted to agriculture show a decrease of about one quarter
whilst aid to manufacturing has decreased by nearly 10%. The most important single
component of manufacturing aid since 1990, has been aid to the shipbuilding
industry. Significant variations have been observed in the railway and coal mining
sectors where decreases of approximately 40 and 26% respectively have been seen.
Temporary, albeit considerable, support was also afforded to restructuring of the
steel industry. Aid specifically targeted towards the service industries has been kept
at a low level. When considering the share of aid taken by different objectives, the
shares granted to agriculture, manufacturing, coal and railways have slowly been
reduced, whilst
training and employment have
increased.

the shares of aid to services,

10.2.7 Finland

The level of aid in Finland has dropped by approximately 33% since 1995 with the
largest decrease being in agriculture and fisheries. Amounts of aid granted to
manufacturing in 1999 are almost identical with the 1995 figure. Between these two
years, aid to shipbuilding rose and then dropped sharply. In terms of shares of total
aid, aid to agriculture and fisheries have fallen slightly whereas the shares of aid to
manufacturing and services have enjoyed small increases.

10.2.8 France

During the 1990s a significant restructuring process was carried out in parts of the
manufacturing and services sector. Accompanying restructuring in manufacturing
were reductions in capacity particularly in the shipbuilding and steel sectors. Coal
mining has also been cut back. A peak in the overall level of national State aid in the
1990s was reached only in 1997, nevertheless given the subsequent drastic reduction

85

in rescue and restructuring aid, a historical low level of aid was reached in 1999.
Over the whole period aid fell in absolute terms by a little over ten percent in the
agricultural sector, whilst aid to fisheries was almost halved. Aid for the railway
sector also gradually decreased. The largest variations in the amounts of aid granted
during this period were seen in manufacturing with a peak being seen in 1997.
Manufacturing rescue and restructuring aid rose from a very low base in 1990 to
reach a relatively high level in 1993 and 1997 before falling back in 1999 to pre-
1993 values. Regional aid has gradually increased and in 1999 was over twice the
in 1990. Aid to the service sectors has also varied drastically
absolute level
particularly as a result of rescue and restructuring aid being granted to financial and
airline services. During these 10 years the relative share of agriculture and fisheries
aid has increased slightly, whilst that of manufacturing has remained stable. Aid to
railways has accounted for the largest and indeed growing share of overall aid. The
share of aid to other service sectors has also increased.

10.2.9 Ireland

The overall amount of aid granted in Ireland was fairly constant until 1997 and only
increased for short periods of time when restructuring aid was granted to the airline
services and steel sectors. In 1997 taxes foregone in the financial services sector
began to increase and in 1998 Irish Corporation Tax was considered in this country’s
aid figures for the first time. In 1999 there was a sharp increase in aid for agriculture.
The respective shares of aid for agricultural, fisheries and services have recently
increased, whilst the shares of aid for manufacturing and railways have decreased.
The share of regional aid reached a peak in 1996 before dropping to its current low
level.

10.2.10 Italy

The overall amounts of aid in Italy have followed a downward trend since 1990 in
most of the major sectors and objectives in spite of the process of restructuring the
shipbuilding, steel and other manufacturing sectors that took place throughout the
decade. In contrast, aid for R&D and environmental protection has gradually
increased over ten years, whilst aid for SMEs and energy saving has slowly
diminished. Regional aid declined five-fold over the same period. Absolute amounts
of aid to the service sector have also gradually declined over ten years; a sharp and
temporary increase was only seen during a short period when the airline and financial
sectors received aid. As a result of the uneven rates of change in aid levels, patterns
of aid have varied and the share of aid for agriculture and fisheries has increased.
The share of aid for railways has also increased and in 1999 accounted for almost
one half of all Italian national aid. The share of manufacturing aid has decreased
from over a half of all aid in 1990, to less than a third in 1999.

10.2.11 Luxembourg

Overall amounts of aid in Luxembourg dropped between 1990 and 1995 with the
largest absolute decreases being seen in agriculture, railways and manufacturing.
Whilst amounts of aid granted in 1999 to agriculture and manufacturing remain well
below 1990 levels, the overall level of aid has increased due to significant increases
in aid to the railway sector since 1995. In fact the major component of aid in
Luxembourg has always been aid to railways that in 1999 accounted for over 70% of

86

overall aid. The share of aid to agriculture has remained stable, whereas the share of
manufacturing aid has decreased.

10.2.12 The Netherlands

Overall levels of national aid have risen by nearly 50% during the decade due to the
increases in amounts of aid granted to agriculture and fisheries and railways, which
in 1999 accounted for a little over 50% of total aid. In contrast aid to manufacturing
has diminished with the largest decrease since 1990 being seen in regional aid. The
shares occupied by the main sectors have followed the same trends.

10.2.13 Portugal

Temporary peaks in the absolute level of Portuguese aid were seen in 1990, 1994 and
1997 when the shipbuilding, steel and airline service sectors were being restructured
and the coal
industry closed. The grant of aid outside of these restructuring
programmes has generally decreased and the overall 1999 level of aid is some 25%
down on 1990. Almost all sectors and objectives have contributed to this long-term
decrease. The share of aid to agriculture, fisheries and railways has remained
constant whilst that of manufacturing has dropped quite considerably. In contrast the
share of aid to service sectors has increased with a single regional aid scheme
benefiting the island of Madeira and accounting for some 38% of national aid in
1999.

10.2.14 Sweden

The level of aid in Sweden has dropped by approximately 20% since 1995 with the
largest absolute decrease being observed in aid to railways. There has been a gradual
increase in the amounts of aid granted to agriculture and fisheries. An increase has
also been observed in aid to manufacturing since 1995, in spite of the decrease in
regional aid. The most
for
environmental protection and lately, energy saving. Aid granted to service sectors
other than railways has increased since 1995. In terms of shares of total aid, the
proportion of aid granted to agriculture and fisheries and manufacturing has
increased whereas the share directed towards service sectors has decreased.
Nevertheless the share of total aid granted to railways remains high at 47% in 1999.

important variation has been seen in support

10.2.15 The United Kingdom

The overall level of aid in 1999 is slightly below that of 1990. During this ten-year
period aid to agriculture has remained fairly stable with temporary increases being
seen in 1996 and 1997 due to the BSE crisis. Aid to fisheries has gradually increased
whilst the level of manufacturing aid in 1999 is more than half of that in 1990. Aid to
the railways peaked in 1996 and in spite of a subsequent decrease is, in 1999, above
the 1990 level. Over the ten-year period aid aimed specifically at various services has
dropped slightly. The share of agricultural and fisheries aid has remained relatively
constant, whilst that of manufacturing has dropped sharply. In 1999, the railway
sector accounted for about 47% of all national aid, a significant increase on its 1990
share.

87

10.2.16 The European Union

Variations in the trends and patterns of aid granted by each of the above Member
States have reflected the changing needs of their economies over the last decade.
When considered together, the variations at the EU level are considerably less
dramatic. During the ten years when aid levels dropped from
100 billion to under
€
80 billion, the share of aid to agriculture has increased from just over 10% to
approximately 20%. An increase has also been observed in the share of aid for the
railway sector. Manufacturing aid that accounted for nearly 50% of all aid in 1990
has declined to less than 30% in 1999. The share of aid directed specifically towards
the service sector has also dropped.

€

188.

To complete this analysis, the national State aid of each Member State and the EU is
presented as a percentage of the respective GDP in Figure 15. The ratio of aid to
GDP for the EU as a whole has gradually decreased and a clear downward trend is
also seen in 12 Member States.

Figure 15 Total National and EU State aid as percentage of National GDP and EU GDP

Austria

P
D
G

1,5

1,0

0,5

0,0

1995

1996

1997

1998

1999

Belgium

P
D
G

4,0
3,0
2,0
1,0
0,0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Denmark

P
D
G

1,5

1,0

0,5

0,0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

l
a
n
o
i
t
a
n
f
o
e
g
a
t
n
e
c
r
e
p
s
a

l
a
n
o
i
t
a
n
f
o
e
g
a
t
n
e
c
r
e
p
s
a

l
a
n
o
i
t
a
n
f
o
e
g
a
t
n
e
c
r
e
p
s
a

France

P
D
G

2,0
1,5
1,0
0,5
0,0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Ireland

P
D
G

2,0
1,5
1,0
0,5
0,0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Italy

P
D
G

4,0
3,0
2,0
1,0
0,0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

l
a
n
o
i
t
a
n
f
o
e
g
a
t
n
e
c
r
e
p
s
a

l
a
n
o
i
t
a
n
f
o
e
g
a
t
n
e
c
r
e
p
s
a

l
a
n
o
i
t
a
n
f
o
e
g
a
t
n
e
c
r
e
p
s
a

88

l
a
n
o
i
t
a
n
f
o
e
g
a
t
n
e
c
r
e
p
s
a

l
a
n
o
i
t
a
n
f
o
e
g
a
t
n
e
c
r
e
p
s
a

l
a
n
o
i
t
a
n
f
o
e
g
a
t
n
e
c
r
e
p
s
a

P
D
G
U
E

f
o

e
g
a
t
n
e
c
r
e
p
s
a

Germany

P
D
G

3,0

2,0

1,0

0,0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

l
a
n
o
i
t
a
n
f
o
e
g
a
t
n
e
c
r
e
p
s
a

Greece

P
D
G

3,0

2,0

1,0

0,0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Spain

P
D
G

2,0
1,5
1,0
0,5
0,0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Luxembourg

P
D
G

4,0
3,0
2,0
1,0
0,0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Netherlands

P
D
G

1,5

1,0

0,5

0,0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Portugal

P
D
G

2,5
2,0
1,5
1,0
0,5
0,0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

l
a
n
o
i
t
a
n
f
o
e
g
a
t
n
e
c
r
e
p
s
a

l
a
n
o
i
t
a
n
f
o
e
g
a
t
n
e
c
r
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p
s
a

l
a
n
o
i
t
a
n
f
o
e
g
a
t
n
e
c
r
e
p
s
a

Finland

Sweden

l
a
n
o
i
t
a
n

f
o
e
g
a
t
n
e
c
r
e
p
s
a

P
D
G

1,2
1,0
0,8
0,6
0,4
0,2
0,0

1995

1996

1997

1998

1999

United Kingdom

P
D
G

1,0
0,8
0,6
0,4
0,2
0,0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

l
a
n
o
i
t
a
n
f
o
e
g
a
t
n
e
c
r
e
p
s
a

P
D
G

3,0

2,0

1,0

0,0

1995

1996

1997

1998

1999

European Union

2

1,5

1

0,5

0
1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

89

189.

190.

191.

192.

Part XI - SERVICES - CHANGING PATTERNS IN STATE AID

The European Union is a service-driven economy. The commercial service sector
accounts for a large proportion of total GDP and this proportion is even larger when
social and public services are included. Therefore before commenting upon the
importance of State aid for services, it is necessary to obtain a greater understanding
of the trends and patterns in the grant of aid to these sectors. In order to do this, data
presented in this and recent Surveys have already focused on various non-
manufacturing sectors such as tourism, media, and culture. Moreover in 2000,
Member States were asked to begin an assessment of the fraction of aid that is
granted by way of major schemes and that
is directed towards services. The
preliminary results of the information recently provided by three Member States are
given below.

The provisional analysis carried out in Ireland indicated that the share of aid granted
to services by way of certain horizontal and regional aid schemes in 1999 was
relatively low. The share of aid granted to services by way of R&D, SME, Regional
and training aid schemes was approximately 10.6% of manufacturing aid.

In Finland the analysis of all SME schemes and, regional schemes that accounted for
83% of all regional aid, showed that in 1999 the share of aid directed towards the
service sector was 4% and 4.8% respectively of total aid to manufacturing.

In Sweden the initial analysis concentrated on a limited number of SME and regional
schemes. In all cases it appeared that during 1998 and 1999 the split between aid
granted to the manufacturing sector and services was approximately 70/30%. Thus
aid to services would represent approximately 11% of total aid to manufacturing. It is
too early to say with any degree of certitude that this ratio can be extrapolated to all
regional and SME schemes. Further analysis will be necessary to show whether the
service sector
in Sweden relies to a lesser extent upon State aid than the
manufacturing sector.

90

ANNEXES

91

ANNEX I

TECHNICAL ANNEX

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:

1.

2.

3.

4.

Scope of the Study - Fields excluded

Categories, forms and objectives of aid

Sources of data and methods of assessing the aid element

Specific issues

–

Research and Development (R&D)

92

1.

SCOPE OF THE STUDY - FIELDS EXCLUDED

193.

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 with the scope of Article 87 EC
Treaty and Article 95 ECSC Treaty. Accordingly, general measures are not included
in the figures.

194.

The following measures or areas are not dealt with :

194.1. 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

194.2. 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.)40
General reduction in VAT (for example, foodstuffs in the United Kingdom)

194.3. Aid granted by supranational and multinational organisations

–
–
–

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

194.4.

Individual types of aid

–
–

Defence
Public Works

40

However, a lower-than-the-standard rate of corporation tax for small businesses constitutes an aid and
has been included

93

2.

CATEGORIES, FORMS AND OBJECTIVES OF AID

195.

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. 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).

196.

Group A (A1 + A2)

196.1. 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 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).

196.2. 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

197.

Group B1

197.1.

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
in their
normal market conditions. Consequently, although equity participation,
various forms, could have been included in the first category,
they have been
grouped together under a separate category (B1).

197.2. List of aid instruments coming under category B1

–

Equity participation in whatever form (including debt conversion)

94

198.

Group C (C1 + C2)

198.1. The third category (C) covers transfers in which the aid element is the interest save
by the recipient during the period for which the capital transferred is at his disposal.
The financial transfer takes the from 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.

198.2. 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.)

199.

Group D1

199.1. 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, the total 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.

199.2. List of aid instruments coming under category D1

–
–

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

95

200.

Objectives of aid

The aid schemes have been broken down according to their sector or objective:

1.

Agriculture and Fisheries

–

–

1.1.

1.2.

Agriculture

Fisheries

2. Manufacturing/Services

–

2.1.

Horizontal objectives

–

2.2.

–
–
–
–
–
–
–
–
–

–
–
–
–
–

–
–

Research and Development
Environment
Small and Medium-sized Enterprises
Commerce
Energy saving
Rescue and restructuring
Employment Aid
Training Aid
Other objectives

Particular sectors

Steel
Shipbuilding
Other Manufacturing Sectors
Coal mining
Transport (Rail, Airlines, Inland Waterways, Maritime, Road
and combined)
Financial services
Tourism, Media, Culture

3.

Regional aid

–

–

3.1.

3.2.

Regions under 87(3)a

Regions under 87(3)c

96

201.

List of regions within the meaning of Article 87 (3) (a) valid until 31/12/199941

Member State
Greece
Ireland
Portugal

Austria

Germany

Spain

France

Italy

Regions
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
Communidad Valenciana
Andalucia
Murcia
Ceuta y Melilla
Canarias
Guadeloupe
Martinique
Guyane
Reunion

Campania
Sicilia
Sardegna
Puglia
Basilicata
Calabria

United Kingdom

Northern Ireland

41

OJ EC no. C 212 of 12.08.1998, pages 2 to 10 and subsequent changes.

97

3.

SOURCES OF DATA AND METHODS OF ASSESSING THE AID ELEMENT

202.

As a general rule, the figures have been expressed in terms of actual expenditure (or
actual revenue foregone in the case of tax expenditure).42 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.

202.1. All the figures have been compiled in current national currency and have been

converted into constant 1998 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, and inland
transport services
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.

202.2. 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 creation and
preservation of employment in rural areas, agro-environmental 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.

42

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

98

For fisheries, data were submitted in accordance with the procedure emanating from
the resolution of the Representatives of the Governments of the Member States,
during the 306th Session of the council on the 2 October 1974. At the time of writing
1999 data were available from Belgium, Denmark, Greece, Spain, Finland, Italy,
Portugal, Sweden and the U.K.

For coal, the figures are those submitted by the Member States in accordance with
Commission Decision Nos. 528/76/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, aid 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 show,
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.

202.3. 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 22.04.1994 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.

202.4. Steel and Shipbuilding

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

99

202.5. Methods of assessing the aid element

202.5.1. Group A - where A1A represents grants and 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.

202.5.2. 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.

202.5.3. 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
is taken as a proxy,
element, 15% of the total amount lent by the government
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
repayment ratio has shown to be very low on average.

202.5.4. Group D - guarantees.

The aid element (D1A) is much lower that 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.

100

4.

SPECIFIC ISSUES

203.

Research and Development (R&D)

203.1. R&D procurement contracts

Research and development procurement contracts have not been found to comprise
research and
State aid. Furthermore, sources of
development contracts intended specifically for military purposes to be isolated and
the impact on the market of such contracts to be evaluated43.

information do not permit

203.2. 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 Treaty44.

203.3. 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.

43

44

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.

101

ANNEX II

STATISTICAL ANNEX

Table A1

Table A2

Table A3

Table A4

Tables A5/1-15

Table A5/16

Tables A6/1-15

Tables A6/16

State aid to the manufacturing sector. Annual amounts of aid 1995-
1999 in current prices and national currencies.

State aid to the manufacturing sector. Annual amounts of aid 1995-
1999 in current prices and euro.

State aid to the manufacturing sector. Annual amounts of aid 1995-
1999 in constant prices and euro.

State aid to the new German Länder. Annual averages 1995-1999 in
constant prices and euro.

Total State aid - annual average 1997-1999 by Member State in
constant price and euro.

Total State aid - annual average 1997-1999 in the EU in constant
prices and euro.

Total annual State aid 1995-1999 by Member State in constant
prices and euro.

Total annual State aid 1995-1999 in the EU in constant prices and
euro.

102

Table A1

State aid to manufacturing in current prices 1995 - 1999

million national currency (billion for Italy)

1995

1996

1997

1998

1999

5.897,70

6.239,38

7.133,21

6.524,99

6.228,36

35.345,54

37.237,72

25.060,30

25.980,21

28.904,77

4.151,53

4.637,40

5.106,25

4.764,14

4.883,38

28.148,72

25.625,54

22.266,78

20.579,44

14.972,33

198.820,31

177.941,13

220.192,55

166.004,79

139.109,82

403.032,23

312.905,10

291.802,59

290.911,46

192.719,01

2.287,91

1.905,08

2.587,32

2.536,17

2.421,92

20.125,28

23.732,84

36.547,15

28.091,04

27.230,05

152,29

227,45

185,72

514,54

21.723,13

18.505,13

16.411,56

10.033,44

1.829,79

1.192,85

1.815,47

1.349,48

1.958,08

1.280,25

2.016,65

1.262,67

428,79

6.414,98

1.506,47

1.251,53

30.320,66

32.102,34

41.051,99

37.051,86

37.300,18

3.090,03

901,38

3.131,47

1.028,77

3.279,96

1.053,18

3.921,89

935,09

3.963,12

858,71

Austria

Belgium

Denmark

Germany

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden

United Kingdom

EUR 15

36.141,13

34.178,67

33.079,01

27.559,14

22.027,35

103

Table A2

State aid to manufacturing in current prices 1995 - 1999

Austria

Belgium

Denmark

Germany

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden

million euro

1995

1996

1997

1998

1999

447,39

916,83

566,53

464,43

947,56

630,14

516,00

618,27

682,32

470,97

639,58

635,28

452,63

716,53

656,76

15.022,67

13.419,74

11.335,27

10.451,03

7.655,23

656,20

582,37

711,78

2.472,59

1.946,56

1.759,04

400,79

326,87

439,97

3.084,31

3.655,14

5.526,90

186,74

286,66

248,46

501,93

1.740,07

423,93

4.255,31

654,43

427,03

1.158,26

407,34

4.151,19

544,45

10.197,98

9.446,41

8.506,49

5.162,16

3.313,06

47,46

568,32

154,61

331,13

46,20

630,68

163,99

367,77

48,31

579,09

206,72

379,13

49,65

568,85

183,70

439,87

37,34

567,92

186,05

449,97

United Kingdom

1.087,58

1.264,16

1.521,26

1.382,38

1.303,57

EUR 15

36.141,13

34.178,67

33.079,01

27.559,14

22.027,35

104

Table A3

State aid to manufacturing in constant prices 1995 - 1999

Austria

Belgium

Denmark

Germany

Greece

Spain

Finland

France

Ireland

Italy

Luxembourg

Netherlands

Portugal

Sweden

million euro

1995

1996

1997

1998

1999

440,80

906,16

588,47

460,44

943,72

641,43

518,07

626,68

694,95

470,97

639,58

635,28

445,64

705,08

633,77

14.726,71

13.269,97

11.436,70

10.451,03

7.536,95

725,17

604,41

700,07

2.608,63

1.956,42

1.784,99

401,52

335,10

445,95

3.161,13

3.674,50

5.586,91

218,90

319,48

249,86

501,93

1.740,07

423,93

4.255,31

654,43

408,82

1.120,43

402,23

4.109,43

525,51

12.372,34

10.010,96

8.667,62

5.162,16

3.252,30

48,05

565,56

166,41

360,30

46,87

632,42

170,63

360,02

48,92

588,18

211,78

372,53

49,65

568,85

183,70

439,87

36,27

554,72

179,53

442,16

United Kingdom

1.458,87

1.612,48

1.604,14

1.382,38

1.238,80

EUR 15

38.749,02

35.038,85

33.537,35

27.559,14

21.591,62

105

Table A4

German state aid to the new Länder - yearly average 1997 - 1999

million ECU

in per cent

in per cent
of total aid

Grants

Tax exemptions

Equity participations

Soft loans

Tax deferrals

Guarantees

4.024,61

766,65

12,34

1.702,78

0,00

389,23

58,36

11,12

0,18

24,69

0,00

5,64

41,03

7,82

0,13

17,36

0,00

3,97

TOTAL

6.895,60

100,00

70,30

6.896 million was granted
During the years of 1997 - 1999 aid totalling a yearly average of
to the new Länder. This volume represents 70% of all German aid to the manufacturing sector
€
2.179 million
that has continued to decrease since 1993 and includes the yearly average of
"Treuhand" aid.

€

106

Table A5/1
Total state aid - Annual averages 1997 - 1999

SECTOR / OBJECTIVE

AUSTRIA

FORMS OF AID

A1A

A2A

B1A

C1A

C2A

D1A

T O T A L A I D
in %

TOTAL

MANUFACTURING
TOTAL
in %

€

million

11 Agriculture
12 Fisheries

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

- Research and Development
- Environment
- SME
- Commerce
- Energy saving
- Rescue and Restructuring
- Employment aid
- Training aid
- Other Objectives

22 Particular Sectors
of which:
- Steel
- Shipbuilding
- Other manufacturing sectors
- Coal - aid to current production
- Coal - other aid
- Transport
of which - Regulation 1191/69

- Airline services

- Tourism
- Financial services
- Media and culture

3 Regional aid
of which:

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

TOTAL
in %

of which:

TOTAL MANUFACTURING
in %

992,70
0,00

965,96

269,94

143,93
53,19
45,52
0,00
2,61
7,32
17,37
0,00
0,00

696,02

3,48
0,00
8,49
0,00
0,00
655,64
636,35
0,00
28,41
0,00
0,00

102,83

77,96
24,87

2.061,49
94,55

367,38
76,82

0,00
0,00

0,00

0,00

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

0,00

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

0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,00

0,00

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

0,00

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

0,38

0,00
0,38

0,38
0,02

0,38
0,08

0,00
0,00

31,81

25,07

15,12
0,04
8,40
0,00
0,00
0,42
1,09
0,00
0,00

6,74

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
6,74
0,00
0,00

63,28

58,40
4,88

95,09
4,36

87,26
18,25

107

0,00
0,00

0,00

0,00

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

0,00

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

0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,00
0,00

992,70
0,00

21,61

1.019,38

21,41

0,13
0,00
13,58
0,00
0,00
7,71
0,00
0,00
0,00

0,20

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,20
0,00
0,00

1,80

1,39
0,41

316,42

159,17
53,23
67,50
0,00
2,61
15,45
18,45
0,00
0,00

702,96

3,48
0,00
8,49
0,00
0,00
655,64
636,35
0,00
35,35
0,00
0,00

168,29

137,76
30,53

23,40
1,07

23,21
4,85

2.180,36
0,00

478,22
0,00

45,53
0,00

46,75

14,51

7,30
2,44
3,10
0,00
0,12
0,71
0,85
0,00
0,00

309,94

297,96

159,17
53,23
67,50
0,00
2,61
15,45

64,81

62,31

33,28
11,13
14,12
0,00
0,55
3,23

0,00

0,00

32,24

11,97

0,16
0,00
0,39
0,00
0,00
30,07
29,19
0,00
1,62
0,00
0,00 -

7,72

6,32
1,40

100,00
0,00

0,00
0,00

3,48
0,00
8,49

-

168,29

137,76
30,53

478,22
0,00

478,22
0,00

2,50

0,73
0,00
1,78

35,19

28,81
6,38

100,00
0,00

0,00
0,00

Table A5/2
Total state aid - Annual averages 1997 - 1999

SECTOR / OBJECTIVE

BELGIUM

FORMS OF AID

A1A

A2A

B1A

C1A

C2A

D1A

T O T A L A I D
in %

TOTAL

MANUFACTURING
TOTAL
in %

€

million

11 Agriculture
12 Fisheries

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

- Research and Development
- Environment
- SME
- Commerce
- Energy saving
- Rescue and Restructuring
- Employment aid
- Training aid
- Other Objectives

22 Particular Sectors
of which:
- Steel
- Shipbuilding
- Other manufacturing sectors
- Coal - aid to current production
- Coal - other aid
- Transport
of which - Regulation 1191/69

- Airline services

- Tourism
- Financial services
- Media and culture

3 Regional aid
of which:

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

of which:

TOTAL

TOTAL MANUFACTURING
TOTAL INDUSTRY

0,00
0,00

0,00

0,00

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

0,00

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

3,84

3,84
0,00

3,84
0,12

3,84
0,58

0,00
0,00

4,11

4,11

0,00
0,00
2,59
1,52
0,00
0,00
0,00
0,00
0,00

0,00

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

3,69

3,69
0,00

7,80
0,25

7,80
1,19

246,68
4,68

2.679,62

566,01

125,11
5,48
149,69
4,81
0,49
8,33
101,40
29,55
141,16

7,83
0,15

85,02

17,96

3,97
0,17
4,75
0,15
0,02
0,26
3,22
0,94
4,48

2.113,61

67,06

0,72
0,00
0,46
0,00
0,00
2.100,11
329,99
0,00
7,31
0,00
5,02

220,87

220,87
0,00

3.151,84
0,00

657,11
0,00

0,02
0,00
0,01
0,00
0,00
66,63
10,47
0,00
0,23
0,00
0,16 -

7,01

7,01
0,00

100,00
0,00

0,00
0,00

436,25

435,07

125,11
5,48
149,69
4,81
0,49
8,33

66,39

66,21

19,04
0,83
22,78
0,73
0,07
1,27

141,16

21,48

1,18

0,72
0,00
0,46

0,18

0,11
0,00
0,07

-

220,87

220,87
0,00

657,11
0,00

657,11
0,00

33,61

33,61
0,00

100,00
0,00

0,00
0,00

246,68
4,68

0,00
0,00

2.502,34

112,07

388,73

112,07

96,54
5,48
146,44
2,81
0,49
5,36
101,40
29,55
0,67

2.113,61

0,72
0,00
0,46
0,00
0,00
2.100,11
329,99
0,00
7,31
0,00
5,02

213,13

213,13
0,00

2.966,83
94,13

472,10
71,84

0,82
0,00
0,16
0,00
0,00
0,00
0,00
0,00
111,09

0,00

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

0,00

0,00
0,00

112,07
3,56

112,07
17,06

0,00
0,00

32,31

32,31

0,00
0,00
0,00
0,00
0,00
2,92
0,00
0,00
29,39

0,00

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

0,00

0,00
0,00

32,31
1,03

32,31
4,92

0,00
0,00

28,79

28,79

27,75
0,00
0,50
0,48
0,00
0,06
0,00
0,00
0,00

0,00

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

0,21

0,21
0,00

29,00
0,92

29,00
4,41

108

Table A5/3
Total state aid - Annual averages 1997 - 1999

SECTOR / OBJECTIVE

DENMARK

FORMS OF AID

A1A

A2A

B1A

C1A

C2A

D1A

T O T A L A I D
in %

TOTAL

MANUFACTURING
TOTAL
in %

€

million

11 Agriculture
12 Fisheries

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

- Research and Development
- Environment
- SME
- Commerce
- Energy saving
- Rescue and Restructuring
- Employment aid
- Training aid
- Other Objectives

22 Particular Sectors
of which:
- Steel
- Shipbuilding
- Other manufacturing sectors
- Coal - aid to current production
- Coal - other aid
- Transport
of which - Regulation 1191/69

- Airline services

- Tourism
- Financial services
- Media and culture

3 Regional aid
of which:

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

239,27
9,28

0,00
0,00

1.129,02

230,27

549,51

230,27

111,66
13,51
12,98
27,47
146,61
0,00
92,02
145,26
0,00

579,51

0,00
36,77
2,62
0,00
0,00
513,99
295,45
0,00
7,36
0,00
18,78

14,39

14,39
0,00

0,45
229,82
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

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

0,00

0,00
0,00

TOTAL
in %

of which:

TOTAL MANUFACTURING
in %

1.391,96
82,82

366,01
55,91

230,27
13,70

230,27
35,17

0,00
0,00

0,00

0,00

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

0,00

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

0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,00
0,00

239,27
9,28

12,18

1.417,68

12,18

12,18
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
0,00
0,00
0,00

0,00

0,00
0,00

838,17

161,82
243,33
13,20
35,93
146,61
0,00
92,02
145,26
0,00

579,51

0,00
36,77
2,62
0,00
0,00
513,99
295,45
0,00
7,36
0,00
18,78

14,39

14,39
0,00

12,18
0,72

12,18
1,86

1.680,62
0,00

654,67
0,00

14,24
0,55

84,35

49,87

9,63
14,48
0,79
2,14
8,72
0,00
5,48
8,64
0,00

34,48

0,00
2,19
0,16
0,00
0,00
30,58
17,58
0,00
0,44
0,00
1,12 -

0,86

0,86
0,00

100,00
0,00

0,00
0,00

640,28

600,89

161,82
243,33
13,20
35,93
146,61
0,00

97,80

91,79

24,72
37,17
2,02
5,49
22,39
0,00

0,00

0,00

39,39

0,00
36,77
2,62

6,02

0,00
5,62
0,40

-

14,39

14,39
0,00

654,67
0,00

654,67
0,00

2,20

2,20
0,00

100,00
0,00

0,00
0,00

0,00
0,00

0,00

0,00

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

0,00

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

0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,00
0,00

46,20

46,20

37,52
0,00
0,22
8,46
0,00
0,00
0,00
0,00
0,00

0,00

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

0,00

0,00
0,00

46,20
2,75

46,20
7,06

109

Table A5/4
Total state aid - Annual averages 1997 - 1999

SECTOR / OBJECTIVE

11 Agriculture
12 Fisheries

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

- Research and Development
- Environment
- SME
- Commerce
- Energy saving
- Rescue and Restructuring
- Employment aid
- Training aid
- Other Objectives

22 Particular Sectors
of which:
- Steel
- Shipbuilding
- Other manufacturing sectors
- Coal - aid to current production
- Coal - other aid
- Transport
of which - Regulation 1191/69

- Airline services

- Tourism
- Financial services
- Media and culture

3 Regional aid
of which:

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

GERMANY

FORMS OF AID

A2A

B1A

C1A

C2A

D1A

A1A
1.663,83
19,16

0,00
0,00

0,00
0,00

0,00
0,00

T O T A L A I D
in %

TOTAL

MANUFACTURING
TOTAL
in %

0,00
0,00

1.663,83
19,16

6,23
0,07

€

million

16.990,74

354,31

104,30

835,17

1.745,85

204,33

1.183,14
74,22
189,29
4,62
104,52
15,50
148,38
26,19
0,00

0,00
0,00
203,31
0,00
1,02
0,00
0,00
0,00
0,00

15.244,88

149,98

0,64
302,70
2,94
4.465,84
434,54
9.979,60
4.337,91
0,00
56,26
0,00
2,36

0,00
0,00
149,98
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

4.037,83

767,16

609,84
3.427,99

0,51
766,65

9,25

0,00
0,00
9,25
0,00
0,00
0,00
0,00
0,00
0,00

95,05

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
95,05
0,00

4,72

0,00
4,72

0,00
0,00

69,78

69,78

0,00
0,00
69,78
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

55,98

55,98
0,00

125,76
0,47

125,76
1,28

832,10

49,59
54,30
669,52
0,00
45,33
1,23
0,00
12,12
0,01

3,07

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
2,76
0,00
0,31

1.281,46

34,60
1.246,87

2.116,63
7,92

2.101,44
21,43

110

146,17

18.500,46

69,25

3.276,03

145,08

3.006,39

11,25

2.819,70

2,19
0,00
126,67
0,00
0,00
0,49
0,00
0,00
15,73

1.234,91
128,51
1.267,83
4,62
150,87
17,22
148,38
38,31
15,74

4,62
0,48
4,75
0,02
0,56
0,06
0,56
0,14
0,06

1.234,91
128,51
1.267,83
4,62
150,87
17,22

33,40

28,75

12,59
1,31
12,93
0,05
1,54
0,18

15,74

0,16

1,09

15.494,08

58,00

456,33

0,07
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
1,02

0,71
302,70
152,92
4.465,84
434,54
9.979,60
4.337,91
0,00
59,02
95,05
3,69

0,00
1,13
0,57
16,72
1,63
37,35
16,24
0,00
0,22
0,36
0,01 -

0,71
302,70
152,92

-

385,06

6.532,20

24,45

6.532,20

79,18
305,88

780,10
5.752,10

2,92
21,53

780,10
5.752,10

531,23
1,99

530,21
5,41

26.715,66
0,00

9.808,23
0,00

100,00
0,00

0,00
0,00

9.808,23
0,00

9.808,23
0,00

4,65

0,01
3,09
1,56

66,60

7,95
58,65

100,00
0,00

0,00
0,00

TOTAL
in %

of which:

TOTAL MANUFACTURING
in %

22.711,56
85,01

5.915,39
60,31

1.121,47
4,20

1.121,47
11,43

109,01
0,41

13,97
0,14

Table A5/5
Total state aid - Annual averages 1997 - 1999

SECTOR / OBJECTIVE

GREECE

FORMS OF AID

A1A

A2A

B1A

C1A

C2A

D1A

T O T A L A I D
in %

TOTAL

MANUFACTURING
TOTAL
in %

€

million

11 Agriculture
12 Fisheries

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

- Research and Development
- Environment
- SME
- Commerce
- Energy saving
- Rescue and Restructuring
- Employment aid
- Training aid
- Other Objectives

22 Particular Sectors
of which:
- Steel
- Shipbuilding
- Other manufacturing sectors
- Coal - aid to current production
- Coal - other aid
- Transport
of which - Regulation 1191/69

- Airline services

- Tourism
- Financial services
- Media and culture

3 Regional aid
of which:

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

TOTAL
in %

of which:

TOTAL MANUFACTURING
in %

0,00
0,00

0,00

0,00

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

0,00

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

0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,24

0,24

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

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

0,24
0,02

0,24
0,05

156,97
20,88

473,22

15,47

0,20
0,81
13,46
0,64
0,00
0,00
0,00
0,00
0,37

457,75

6,67
7,51
0,00
0,00
0,00
443,51
0,00
0,00
0,02
0,00
0,03

492,30

0,00
492,30

1.143,36
87,62

521,96
97,21

0,00
0,00

5,59

5,59

0,00
0,00
0,00
5,59
0,00
0,00
0,00
0,00
0,00

0,00

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

0,00

0,00
0,00

5,59
0,43

5,59
1,04

0,00
0,00

144,20

0,00

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

144,20

0,00
0,00
0,00
0,00
0,00
144,20
0,00
144,20
0,00
0,00
0,00

0,00

0,00
0,00

144,20
11,05

0,00
0,00

0,00
0,00

2,91

0,00

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

2,91

0,54
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
2,37

8,61

0,00
8,61

11,52
0,88

9,15
1,70

111

156,97
20,88

12,03
1,60

626,17

47,98

36,03

21,31

0,20
0,81
13,46
6,24
0,00
0,00

6,71

3,97

0,04
0,15
2,51
1,16
0,00
0,00

0,61

0,11

1,63

0,01
0,06
1,03
0,48
0,00
0,00
0,00
0,00
0,05

46,35

14,72

0,55
0,58
0,00
0,00
0,00
45,04
0,00
11,05
0,00
0,00
0,18 -

38,39

0,00
38,39

100,00
0,00

0,00
0,00

7,20
7,51
0,00

-

500,91

0,00
500,91

536,94
0,00

536,94
0,00

2,74

1,34
1,40
0,00

93,29

0,00
93,29

100,00
0,00

0,00
0,00

21,31

0,20
0,81
13,46
6,24
0,00
0,00
0,00
0,00
0,61

604,85

7,20
7,51
0,00
0,00
0,00
587,71
0,00
144,20
0,02
0,00
2,41

500,91

0,00
500,91

1.304,92
0,00

536,94
0,00

Table A5/6
Total state aid - Annual averages 1997 - 1999

SECTOR / OBJECTIVE

11 Agriculture
12 Fisheries

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

- Research and Development
- Environment
- SME
- Commerce
- Energy saving
- Rescue and Restructuring
- Employment aid
- Training aid
- Other Objectives

22 Particular Sectors
of which:
- Steel
- Shipbuilding
- Other manufacturing sectors
- Coal - aid to current production
- Coal - other aid
- Transport
of which - Regulation 1191/69

- Airline services

- Tourism
- Financial services
- Media and culture

3 Regional aid
of which:

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

TOTAL
in %

of which:

TOTAL MANUFACTURING
in %

A1A
1.172,58
57,55

4.403,08

1.193,55

177,75
16,72
184,33
1,41
24,96
41,24
119,14
599,37
28,61

3.209,53

40,39
430,51
149,45
725,78
367,44
1.450,67
274,28
0,00
21,02
0,00
24,26

311,93

228,14
83,79

5.945,13
97,68

1.407,31
90,88

SPAIN

FORMS OF AID

A2A

B1A

C1A

C2A

D1A

0,00
0,00

0,00

0,00

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

0,00

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

0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,59

0,59

0,00
0,00
0,17
0,00
0,00
0,41
0,00
0,00
0,00

0,00

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

0,00

0,00
0,00

0,59
0,01

0,59
0,04

0,00
0,00

0,55

0,55

0,00
0,00
0,00
0,00
0,00
0,55
0,00
0,00
0,00

0,00

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

0,00

0,00
0,00

0,55
0,01

0,55
0,04

0,00
0,00

22,14

18,47

0,00
0,00
4,33
0,00
0,00
14,14
0,00
0,00
0,00

3,67

3,67
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

11,05

6,43
4,62

33,19
0,55

33,19
2,14

0,00
0,00

92,55

92,41

39,70
0,00
51,84
0,00
0,00
0,87
0,00
0,00
0,00

0,14

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

14,44

14,44
0,00

107,00
1,76

106,86
6,90

112

€

million

T O T A L A I D
in %

TOTAL

MANUFACTURING
TOTAL
in %

1.172,58
57,55

19,27
0,95

4.518,90

74,25

1.211,07

1.305,57

21,45

587,05

217,45
16,72
240,67
1,41
24,96
57,22
119,14
599,37
28,61

3,57
0,27
3,95
0,02
0,41
0,94
1,96
9,85
0,47

217,45
16,72
240,67
1,41
24,96
57,22

78,21

37,91

14,04
1,08
15,54
0,09
1,61
3,69

28,61

1,85

3.213,34

52,79

624,02

44,06
430,51
149,45
725,78
367,44
1.450,67
274,28
0,00
21,17
0,00
24,26

337,43

249,01
88,41

6.086,46
0,00

1.548,50
0,00

0,72
7,07
2,46
11,92
6,04
23,83
4,51
0,00
0,35
0,00
0,40 -

5,54

4,09
1,45

100,00
0,00

0,00
0,00

44,06
430,51
149,45

-

337,43

249,01
88,41

1.548,50
0,00

1.548,50
0,00

40,30

2,85
27,80
9,65

21,79

16,08
5,71

100,00
0,00

0,00
0,00

Table A5/7
Total state aid - Annual averages 1997 - 1999

SECTOR / OBJECTIVE

11 Agriculture
12 Fisheries

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

- Research and Development
- Environment
- SME
- Commerce
- Energy saving
- Rescue and Restructuring
- Employment aid
- Training aid
- Other Objectives

22 Particular Sectors
of which:
- Steel
- Shipbuilding
- Other manufacturing sectors
- Coal - aid to current production
- Coal - other aid
- Transport
of which - Regulation 1191/69

- Airline services

- Tourism
- Financial services
- Media and culture

3 Regional aid
of which:

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

TOTAL
in %

of which:

TOTAL MANUFACTURING
in %

A1A
1.468,04
1,77

415,77

319,89

150,43
5,51
39,37
39,11
40,20
0,00
45,27
0,00
0,00

95,89

0,00
34,95
6,03
0,00
0,00
41,14
38,73
0,00
0,00
0,00
13,76

58,60

58,60
0,00

1.944,19
97,50

374,19
88,25

FINLAND

FORMS OF AID

A2A

B1A

C1A

C2A

D1A

T O T A L A I D
in %

TOTAL

MANUFACTURING
TOTAL
in %

€

million

0,00
0,00

0,00

0,00

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

0,00

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

0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,00
0,00

1,71

1,71

0,00
0,00
0,00
1,71
0,00
0,00
0,00
0,00
0,00

0,00

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

1,82
0,09

1,82
0,43

1.468,04
1,77

456,31

359,29

158,27
5,51
69,23
40,82
40,20
0,00
45,27
0,00
0,00

97,02

0,00
34,95
7,16
0,00
0,00
41,14
38,73
0,00
0,00
0,00
13,76

67,91

67,91
0,00

73,62
0,09

22,88

18,02

7,94
0,28
3,47
2,05
2,02
0,00
2,27
0,00
0,00

4,87

0,00
1,75
0,36
0,00
0,00
2,06
1,94
0,00
0,00
0,00
0,69 -

3,41

3,41
0,00

1.994,03
0,00

424,03
0,00

100,00
0,00

0,00
0,00

356,13

314,02

158,27
5,51
69,23
40,82
40,20
0,00

83,99

74,05

37,32
1,30
16,33
9,63
9,48
0,00

0,00

0,00

42,11

0,00
34,95
7,16

9,93

0,00
8,24
1,69

-

67,91

67,91
0,00

424,03
0,00

424,03
0,00

16,01

16,01
0,00

100,00
0,00

0,00
0,00

0,00
0,00

1,13

0,00

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

1,13

0,00
0,00
1,13
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

7,71

7,71
0,00

8,84
0,44

8,84
2,08

0,00
0,00

3,18

3,18

3,18
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
0,00
0,00
0,00

0,00

0,00
0,00

3,18
0,16

3,18
0,75

0,00
0,00

34,52

34,52

4,65
0,00
29,86
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
0,00
0,00
0,00

1,49

1,49
0,00

36,00
1,81

36,00
8,49

113

Table A5/8
Total state aid - Annual averages 1997 - 1999

SECTOR / OBJECTIVE

11 Agriculture
12 Fisheries

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

- Research and Development
- Environment
- SME
- Commerce
- Energy saving
- Rescue and Restructuring
- Employment aid
- Training aid
- Other Objectives

22 Particular Sectors
of which:
- Steel
- Shipbuilding
- Other manufacturing sectors
- Coal - aid to current production
- Coal - other aid
- Transport
of which - Regulation 1191/69

- Airline services

- Tourism
- Financial services
- Media and culture

3 Regional aid
of which:

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

FRANCE

FORMS OF AID

A2A

B1A

C1A

C2A

D1A

T O T A L A I D
in %

TOTAL

MANUFACTURING
TOTAL
in %

€

million

0,00
0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,00
0,00

3.063,21
24,60

17,18
0,14

A1A
3.063,21
24,60

8.405,09

453,41

3.424,65

366,55

21,73

103,63

12.775,07

71,65

2.684,74

801,01

435,20

560,52

366,55

398,43
30,35
253,08
45,27
30,25
33,03
6,02
0,03
4,55

435,20
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00
0,00
0,00
0,00
0,00
560,52
0,00
0,00
0,00

7.604,08

18,21

2.864,13

0,00
258,48
125,32
369,86
610,12
6.050,59
1.467,86
0,00
8,54
0,00
181,17

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
18,21

219,79

1.746,03

181,70
38,08

1.096,94
649,08

0,00
0,00
40,46
0,00
0,00
0,00
0,00
0,00
0,00
2.714,14
109,53

0,00

0,00
0,00

351,33
0,00
15,22
0,00
0,00
0,00
0,00
0,00
0,00

0,00

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

0,00

0,00
0,00

81,62

2.244,90

12,59

2.238,85

0,00
0,00
0,00
81,62
0,00
0,00
0,00
0,00
0,00

1.184,96
30,35
268,29
126,89
30,25
593,55
6,02
0,03
4,55

6,65
0,17
1,50
0,71
0,17
3,33
0,03
0,00
0,03

1.184,96
30,35
268,29
126,89
30,25
593,55

4,55

0,10

57,73

48,14

25,48
0,65
5,77
2,73
0,65
12,76

22,01

10.530,17

59,06

445,89

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
21,36
0,66

0,00

0,00
0,00

0,00
258,48
187,41
369,86
610,12
6.050,59
1.467,86
0,00
8,54
2.735,50
309,67

0,00
1,45
1,05
2,07
3,42
33,94
8,23
0,00
0,05
15,34
1,74 -

0,00
258,48
187,41

-

1.965,81

11,03

1.965,81

1.278,65
687,16

7,17
3,85

1.278,65
687,16

103,63
0,58

81,62
1,76

17.828,69
0,00

4.650,55
0,00

100,00
0,00

0,00
0,00

4.650,55
0,00

4.650,55
0,00

9,59

0,00
5,56
4,03

42,27

27,49
14,78

100,00
0,00

0,00
0,00

0,00

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

21,73

0,00
0,00
21,63
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,10

0,00

0,00
0,00

21,73
0,12

21,63
0,47

TOTAL
in %

of which:

TOTAL MANUFACTURING
in %

11.712,70
65,70

1.398,55
30,07

2.199,43
12,34

2.181,22
46,90

3.424,65
19,21

600,98
12,92

366,55
2,06

366,55
7,88

114

Table A5/9
Total state aid - Annual averages 1997 - 1999

SECTOR / OBJECTIVE

IRELAND

FORMS OF AID

A1A

A2A

B1A

C1A

C2A

D1A

T O T A L A I D
in %

TOTAL

MANUFACTURING
TOTAL
in %

€

million

11 Agriculture
12 Fisheries

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

- Research and Development
- Environment
- SME
- Commerce
- Energy saving
- Rescue and Restructuring
- Employment aid
- Training aid
- Other Objectives

22 Particular Sectors
of which:
- Steel
- Shipbuilding
- Other manufacturing sectors
- Coal - aid to current production
- Coal - other aid
- Transport
of which - Regulation 1191/69

- Airline services

- Tourism
- Financial services
- Media and culture

3 Regional aid
of which:

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

TOTAL
in %

of which:

TOTAL MANUFACTURING
in %

0,00
0,00

0,00

0,00

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

0,00

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

0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,00
0,00

22,12

22,12

0,00
0,00
0,00
0,19
0,00
0,00
0,00
0,00
21,93

0,00

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

0,00

0,00
0,00

166,05
13,39

724,36

418,54

12,12
0,00
4,15
3,84
3,37
0,00
85,84
21,38
287,83

305,82

0,00
0,00
4,48
0,00
0,00
136,47
84,55
0,00
0,43
152,16
12,28

160,81

0,00
160,81

22,12
2,08

22,12
4,64

1.064,61
0,00

476,60
0,00

15,60
1,26

68,04

39,31

1,14
0,00
0,39
0,36
0,32
0,00
8,06
2,01
27,04

28,73

0,00
0,00
0,42
0,00
0,00
12,82
7,94
0,00
0,04
14,29
1,15 -

15,10

0,00
15,10

100,00
0,00

0,00
0,00

315,79

311,31

12,12
0,00
4,15
3,84
3,37
0,00

66,26

65,32

2,54
0,00
0,87
0,81
0,71
0,00

287,83

60,39

4,48

0,00
0,00
4,48

0,94

0,00
0,00
0,94

-

160,81

0,00
160,81

476,60
0,00

476,60
0,00

33,74

0,00
33,74

100,00
0,00

0,00
0,00

166,05
13,39

0,00
0,00

266,00

426,87

129,00

267,41

12,12
0,00
4,15
3,49
2,03
0,00
85,84
21,38
0,00

0,00
0,00
0,00
0,16
1,35
0,00
0,00
0,00
265,90

136,99

159,46

0,00
0,00
0,13
0,00
0,00
136,47
84,55
0,00
0,39
0,00
0,00

122,13

0,00
122,13

567,57
53,31

144,04
30,22

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
152,16
7,30

6,69

0,00
6,69

433,57
40,73

274,10
57,51

0,00
0,00

4,36

0,00

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

4,36

0,00
0,00
4,36
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

31,98

0,00
31,98

36,34
3,41

36,34
7,62

0,00
0,00

5,01

0,00

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

5,01

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,04
0,00
4,97

0,00

0,00
0,00

5,01
0,47

0,00
0,00

115

Table A5/10
Total state aid - Annual averages 1997 - 1999

SECTOR / OBJECTIVE

11 Agriculture
12 Fisheries

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

- Research and Development
- Environment
- SME
- Commerce
- Energy saving
- Rescue and Restructuring
- Employment aid
- Training aid
- Other Objectives

22 Particular Sectors
of which:
- Steel
- Shipbuilding
- Other manufacturing sectors
- Coal - aid to current production
- Coal - other aid
- Transport
of which - Regulation 1191/69

- Airline services

- Tourism
- Financial services
- Media and culture

3 Regional aid
of which:

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

TOTAL
in %

of which:

TOTAL MANUFACTURING
in %

ITALY

FORMS OF AID

A2A

B1A

C1A

C2A

D1A

A1A
1.629,74
81,02

0,00
0,00

0,00
0,00

0,00
0,00

€

million

T O T A L A I D
in %

TOTAL

MANUFACTURING
TOTAL
in %

1.629,74
81,02

11,98
0,60

0,00
0,00

0,00

0,00

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

0,00

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

0,00

0,00
0,00

0,00
0,00

0,00
0,00

30,95

0,54

0,00
0,00

8,21

8,21

0,00
0,00
0,40
0,00
0,00
7,82
0,00
0,00
0,00

0,00

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

2,18

0,06
2,11

7.725,96

56,79

1.525,35

1.478,93

10,87

1.259,45

277,50
15,58
688,51
2,80
26,99
217,12
219,48
0,00
30,95

2,04
0,11
5,06
0,02
0,20
1,60
1,61
0,00
0,23

277,50
15,58
688,51
2,80
26,99
217,12

6.247,03

45,92

265,90

72,33
146,68
46,89
0,00
0,00
5.289,33
638,55
213,90
253,03
376,01
62,77

0,53
1,08
0,34
0,00
0,00
38,88
4,69
1,57
1,86
2,76
0,46 -

72,33
146,68
46,89

-

4.168,68

30,64

4.168,68

146,35
4.022,33

1,08
29,56

146,35
4.022,33

10,39
0,08

10,39
0,18

13.605,41
0,00

5.694,03
0,00

100,00
0,00

0,00
0,00

5.694,03
0,00

5.694,03
0,00

26,79

22,12

4,87
0,27
12,09
0,05
0,47
3,81

4,67

1,27
2,58
0,82

73,21

2,57
70,64

100,00
0,00

0,00
0,00

6.742,98

257,72

487,37

229,67

1.091,15

254,80

172,86
15,58
650,50
1,76
26,99
147,71
44,82
0,00
30,95

5.651,83

72,33
146,68
46,05
0,00
0,00
5.075,43
638,55
0,00
251,31
0,00
60,02

69,94
0,00
10,20
0,00
0,00
0,00
174,66
0,00
0,00

2,92

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,18
0,00
2,75

2.311,34

1.804,00

130,80
2.180,54

15,49
1.788,51

10.765,09
79,12

3.622,73
63,62

2.061,72
15,15

1.884,14
33,09

30,64

0,00
0,00
0,02
0,50
0,00
30,12
0,00
0,00
0,00

94,12

34,70
0,00
27,40
0,55
0,00
31,48
0,00
0,00
0,00

456,74

135,55

0,00
0,00
0,00
0,00
0,00
213,90
0,00
213,90
0,00
242,84
0,00

0,00

0,00
0,00

487,37
3,58

30,64
0,54

0,00
0,00
0,84
0,00
0,00
0,00
0,00
0,00
1,54
133,17
0,00

51,16

0,00
51,16

280,83
2,06

146,12
2,57

116

Table A5/11
Total state aid - Annual averages 1997 - 1999

SECTOR / OBJECTIVE

LUXEMBOURG

FORMS OF AID

A1A

A2A

B1A

C1A

C2A

D1A

T O T A L A I D
in %

TOTAL

MANUFACTURING
TOTAL
in %

€

million

11 Agriculture
12 Fisheries

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

- Research and Development
- Environment
- SME
- Commerce
- Energy saving
- Rescue and Restructuring
- Employment aid
- Training aid
- Other Objectives

22 Particular Sectors
of which:
- Steel
- Shipbuilding
- Other manufacturing sectors
- Coal - aid to current production
- Coal - other aid
- Transport
of which - Regulation 1191/69

- Airline services

- Tourism
- Financial services
- Media and culture

3 Regional aid
of which:

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

TOTAL
in %

of which:

TOTAL MANUFACTURING
in %

0,00
0,00

0,00

0,00

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

0,00

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

0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,00

0,00

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

0,00

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

0,00

0,00
0,00

0,00
0,00

0,00
0,00

31,53
0,00

14,48
0,00

158,01

72,59

16,74

4,37
2,03
10,06
0,29
0,00
0,00
0,00
0,00
0,00

141,27

0,00
0,00
0,05
0,00
0,00
139,19
68,73
0,00
0,00
0,00
2,03

28,15

28,15
0,00

217,69
0,00

44,95
0,00

7,69

2,01
0,93
4,62
0,13
0,00
0,00
0,00
0,00
0,00

64,90

0,00
0,00
0,03
0,00
0,00
63,94
31,57
0,00
0,00
0,00
0,93 -

12,93

12,93
0,00

100,00
0,00

0,00
0,00

16,80

16,74

4,37
2,03
10,06
0,29
0,00
0,00

37,37

37,25

9,73
4,51
22,38
0,64
0,00
0,00

0,00

0,00

0,05

0,00
0,00
0,05

0,12

0,00
0,00
0,12

-

28,15

28,15
0,00

44,95
0,00

44,95
0,00

62,63

62,63
0,00

100,00
0,00

0,00
0,00

31,53
0,00

157,09

15,82

4,27
2,03
9,24
0,29
0,00
0,00
0,00
0,00
0,00

141,27

0,00
0,00
0,05
0,00
0,00
139,19
68,73
0,00
0,00
0,00
2,03

26,38

26,38
0,00

215,00
98,77

42,26
94,02

0,00
0,00

0,00

0,00

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

0,00

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

1,76

1,76
0,00

1,76
0,81

1,76
3,92

0,00
0,00

0,00

0,00

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

0,00

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

0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,92

0,92

0,10
0,00
0,82
0,00
0,00
0,00
0,00
0,00
0,00

0,00

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

0,00

0,00
0,00

0,92
0,42

0,92
2,05

117

Table A5/12
Total state aid - Annual averages 1997 - 1999

SECTOR / OBJECTIVE

11 Agriculture
12 Fisheries

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

- Research and Development
- Environment
- SME
- Commerce
- Energy saving
- Rescue and Restructuring
- Employment aid
- Training aid
- Other Objectives

22 Particular Sectors
of which:
- Steel
- Shipbuilding
- Other manufacturing sectors
- Coal - aid to current production
- Coal - other aid
- Transport
of which - Regulation 1191/69

- Airline services

- Tourism
- Financial services
- Media and culture

3 Regional aid
of which:

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

TOTAL
in %

of which:

TOTAL MANUFACTURING
in %

NETHERLANDS

FORMS OF AID

A2A

B1A

C1A

C2A

D1A

T O T A L A I D
in %

TOTAL

MANUFACTURING
TOTAL
in %

€

million

A1A
1.167,00
5,01

0,00
0,00

1.699,63

121,64

269,70

114,99

142,28
29,00
9,80
0,00
55,63
0,00
0,03
0,00
32,96

1.429,93

0,00
19,83
0,00
0,00
0,00
1.385,35
213,87
0,00
0,00
0,00
24,75

77,70

77,70
0,00

2.949,34
93,35

367,20
64,36

0,00
6,10
0,00
0,00
108,89
0,00
0,00
0,00
0,00

6,65

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
6,65

0,00

0,00
0,00

121,64
3,85

114,99
20,15

0,00
0,00

1.167,00
5,01

11,84

1.909,66

473,08

147,25
82,64
21,65
24,04
164,52
0,00
0,03
0,00
32,96

36,94
0,16

60,44

14,97

4,66
2,62
0,69
0,76
5,21
0,00
0,00
0,00
1,04

1.436,58

45,47

0,00
19,83
0,00
0,00
0,00
1.385,35
213,87
0,00
0,00
0,00
31,40

77,70

77,70
0,00

3.159,37
0,00

570,58
0,00

0,00
0,63
0,00
0,00
0,00
43,85
6,77
0,00
0,00
0,00
0,99 -

2,46

2,46
0,00

100,00
0,00

0,00
0,00

11,84

0,00
0,00
11,84
0,00
0,00
0,00
0,00
0,00
0,00

0,00

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

0,00

0,00
0,00

11,84
0,37

11,84
2,08

492,88

473,05

147,25
82,64
21,65
24,04
164,52
0,00

86,38

82,91

25,81
14,48
3,79
4,21
28,83
0,00

32,96

5,78

19,83

0,00
19,83
0,00

3,47

0,00
3,47
0,00

-

77,70

77,70
0,00

570,58
0,00

570,58
0,00

13,62

13,62
0,00

100,00
0,00

0,00
0,00

0,00
0,00

47,54

47,54

0,00
47,54
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

47,54
1,50

47,54
8,33

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

0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,00
0,00

29,00

29,00

4,96
0,00
0,00
24,04
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
0,00
0,00

0,00

0,00
0,00

29,00
0,92

29,00
5,08

118

Table A5/13
Total state aid - Annual averages 1997 - 1999

SECTOR / OBJECTIVE

PORTUGAL

FORMS OF AID

A1A

A2A

B1A

C1A

C2A

D1A

T O T A L A I D
in %

TOTAL

MANUFACTURING
TOTAL
in %

€

million

11 Agriculture
12 Fisheries

301,07
2,08

0,00
0,00

0,00
0,00

0,00
0,00

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

- Research and Development
- Environment
- SME
- Commerce
- Energy saving
- Rescue and Restructuring
- Employment aid
- Training aid
- Other Objectives

22 Particular Sectors
of which:
- Steel
- Shipbuilding
- Other manufacturing sectors
- Coal - aid to current production
- Coal - other aid
- Transport
of which - Regulation 1191/69

- Airline services

- Tourism
- Financial services
- Media and culture

3 Regional aid
of which:

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

TOTAL
in %

of which:

TOTAL MANUFACTURING
in %

323,33

786,08

73,29

15,27

220,81

12,41
0,00
22,60
0,50
8,83
0,41
34,45
71,06
70,55

3,99

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
3,99

102,52

782,10

1,08
11,54
7,26
0,00
0,00
45,50
25,76
0,00
32,36
0,00
4,77

28,00

0,00
28,00

654,48
42,65

163,19
85,14

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
8,60
3,87

772,33

0,00
772,33

788,79
51,40

6,69
3,49

4,50

0,00
0,00
0,00
0,00
0,00
4,50
0,00
0,00
0,00

68,78

0,00
0,00
0,00
0,00
0,00
68,78
0,00
68,78
0,00
0,00
0,00

0,00

0,00
0,00

73,29
4,78

4,50
2,35

0,00

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

15,27

0,00
0,00
14,48
0,00
0,00
0,00
0,00
0,00
0,79
0,00
0,00

2,52

0,00
2,52

17,79
1,16

17,00
8,87

119

0,00
0,00

0,00

0,00

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

0,00

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

0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,10

0,10

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

0,19

0,00
0,19

0,29
0,02

0,29
0,15

301,07
2,08

1.198,06

229,39

12,41
0,00
22,60
0,50
8,83
5,00
34,45
71,06
74,53

968,67

1,08
11,54
21,74
0,00
0,00
114,28
25,76
68,78
33,16
8,60
8,64

803,05

0,00
803,05

19,62
0,14

78,07

14,95

0,81
0,00
1,47
0,03
0,58
0,33
2,24
4,63
4,86

63,12

0,07
0,75
1,42
0,00
0,00
7,45
1,68
4,48
2,16
0,56
50,71

2,18

0,00
2,18

1.534,63
0,00

191,67
0,00

100,00
0,00

0,00
0,00

158,25

123,89

12,41
0,00
22,60
0,50
8,83
5,00

82,56

64,64

6,48
0,00
11,79
0,26
4,61
2,61

74,53

38,89

34,36

1,08
11,54
21,74

17,93

0,57
6,02
11,34

33,42

0,00
33,42

191,67
0,00

191,67
0,00

17,44

0,00
17,44

100,00
0,00

0,00
0,00

Table A5/14
Total state aid - Annual averages 1997 - 1999

SECTOR /OBJECTIVE

SWEDEN

FORMS OF AID

A1A

A2A

B1A

C1A

C2A

D1A

T O T A L A I D
in %

TOTAL

MANUFACTURING
TOTAL
in %

€

million

11 Agriculture
12 Fisheries

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

- Research and Development
- Environment
- SME
- Commerce
- Energy saving
- Rescue and Restructuring
- Employment aid
- Training aid
- Other Objectives

22 Particular Sectors
of which:
- Steel
- Shipbuilding
- Other manufacturing sectors
- Coal - aid to current production
- Coal - other aid
- Transport
of which - Regulation 1191/69

- Airline services

- Tourism
- Financial services
- Media and culture

3 Regional aid
of which:

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

TOTAL
in %

of which:

TOTAL MANUFACTURING
in %

0,00
0,00

0,00

0,00

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

0,00

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

0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,30

0,28

0,28
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,02

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

0,05

0,05
0,00

0,35
0,02

0,33
0,08

333,74
8,87

1.280,01

278,53

89,14
93,09
37,06
0,00
29,17
0,00
10,69
19,38
0,00

18,62
0,49

71,42

15,54

4,97
5,19
2,07
0,00
1,63
0,00
0,60
1,08
0,00

1.001,48

55,88

0,00
0,00
0,00
0,00
0,00
906,35
62,29
0,00
0,00
0,00
95,13

169,73

169,73
0,00

1.792,35
0,00

418,19
0,00

0,00
0,00
0,00
0,00
0,00
50,57
3,48
0,00
0,00
0,00
5,31 -

9,47

9,47
0,00

100,00
0,00

0,00
0,00

248,46

248,46

89,14
93,09
37,06
0,00
29,17
0,00

59,41

59,41

21,32
22,26
8,86
0,00
6,98
0,00

0,00

0,00

0,00

0,00
0,00
0,00

0,00

0,00
0,00
0,00

-

169,73

169,73
0,00

418,19
0,00

418,19
0,00

40,59

40,59
0,00

100,00
0,00

0,00
0,00

333,74
8,87

1.208,01

206,79

61,30
73,10
13,15
0,00
29,16
0,00
10,69
19,38
0,00

1.001,22

0,00
0,00
0,00
0,00
0,00
906,35
62,29
0,00
0,00
0,00
94,87

115,15

115,15
0,00

1.665,77
92,94

291,87
69,79

0,00
0,00

19,99

19,99

0,00
19,99
0,00
0,00
0,00
0,00
0,00
0,00
0,00

0,00

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

45,43

45,43
0,00

65,42
3,65

65,42
15,64

0,00
0,00

8,33

8,33

8,21
0,00
0,12
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
0,00
0,00
0,00

0,00

0,00
0,00

8,33
0,46

8,33
1,99

0,00
0,00

43,38

43,14

19,35
0,00
23,78
0,00
0,01
0,00
0,00
0,00
0,00

0,23

0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,23

9,10

9,10
0,00

52,48
2,93

52,25
12,49

120

Table A5/15
Total state aid - Annual averages 1997 - 1999

SECTOR / OBJECTIVE

11 Agriculture
12 Fisheries

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

- Research and Development
- Environment
- SME
- Commerce
- Energy saving
- Rescue and Restructuring
- Employment aid
- Training aid
- Other Objectives

22 Particular Sectors
of which:
- Steel
- Shipbuilding
- Other manufacturing sectors
- Coal - aid to current production
- Coal - other aid
- Transport
of which - Regulation 1191/69

- Airline services

- Tourism
- Financial services
- Media and culture

3 Regional aid
of which:

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

TOTAL
in %

of which:

TOTAL MANUFACTURING
in %

A1A
1.348,70
33,46

5.310,57

1.780,22

120,20
6,93
283,27
92,08
22,58
0,00
0,00
1.255,17
0,00

3.530,35

0,00
5,16
2,33
0,00
603,91
2.661,21
2.573,21
0,00
10,27
0,00
247,47

828,83

595,20
233,64

7.521,57
99,38

1.361,38
96,66

UNITED KINGDOM

FORMS OF AID

A2A

B1A

C1A

C2A

D1A

T O T A L A I D
in %

TOTAL

MANUFACTURING
TOTAL
in %

€

million

0,00
0,00

0,00

0,00

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

0,00

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

11,58

11,58
0,00

11,58
0,15

11,58
0,82

0,00
0,00

2,65

2,65

0,00
0,00
2,59
0,05
0,00
0,00
0,00
0,00
0,00

0,00

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

0,00

0,00
0,00

2,65
0,03

2,65
0,19

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

15,26

15,26
0,00

15,26
0,20

15,26
1,08

0,00
0,00

0,00

0,00

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

0,00

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

0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,00
0,00

17,42

17,42

0,00
0,00
17,42
0,00
0,00
0,00
0,00
0,00
0,00

0,00

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

0,16

0,08
0,08

17,58
0,23

17,58
1,25

121

1.348,70
33,46

5.330,64

1.800,29

120,20
6,93
303,29
92,13
22,58
0,00
0,00
1.255,17
0,00

17,82
0,44

70,43

23,79

1,59
0,09
4,01
1,22
0,30
0,00
0,00
16,58
0,00

3.530,35

46,64

0,00
0,07
0,03
0,00
7,98
35,16
34,00
0,00
0,14
0,00
3,27 -

0,00
5,16
2,33
0,00
603,91
2.661,21
2.573,21
0,00
10,27
0,00
247,47

855,82

622,11
233,71

7.568,62
0,00

1.408,44
0,00

552,61

545,12

120,20
6,93
303,29
92,13
22,58
0,00

39,24

38,70

8,53
0,49
21,53
6,54
1,60
0,00

0,00

0,00

7,50

0,00
5,16
2,33

0,53

0,00
0,37
0,17

-

11,31

855,82

8,22
3,09

622,11
233,71

100,00
0,00

0,00
0,00

1.408,44
0,00

1.408,44
0,00

60,76

44,17
16,59

100,00
0,00

0,00
0,00

Table A5/16
Total state aid - Annual averages 1997 - 1999

SECTOR / OBJECTIVE

11 Agriculture
12 Fisheries

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

- Research and Development
- Environment
- SME
- Commerce
- Energy saving
- Rescue and Restructuring
- Employment aid
- Training aid
- Other Objectives

22 Particular Sectors
of which:
- Steel
- Shipbuilding
- Other manufacturing sectors
- Coal - aid to current production
- Coal - other aid
- Transport
of which - Regulation 1191/69

- Airline services

- Tourism
- Financial services
- Media and culture

3 Regional aid
of which:

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

EUROPEAN UNION

A1A
13.981,10
281,76

FORMS OF AID

A2A

B1A

C1A

C2A

D1A

T O T A L A I D
en %

TOTAL

MANUFACTURING
TOTAL
en %

0,00
0,00

0,00
0,00

0,00
0,00

0,00
0,00

0,00
0,00

13.981,10
281,76

15,55
0,31

€

million

50.992,84

2.769,65

4.304,12

1.779,17

139,06

335,46

60.320,30

67,11

12.260,60

8.997,46

1.649,20

667,19

1.610,25

117,32

312,13

13.353,56

14,86

10.292,87

2.787,52
326,41
1.877,18
219,45
494,85
250,57
705,43
2.167,39
168,66

506,41
255,91
213,67
5,76
111,26
0,55
174,66
0,00
380,98

11,39
0,00
13,72
0,50
0,00
612,19
0,00
0,00
29,39

584,77
54,34
845,00
33,52
45,34
34,05
1,09
12,12
0,01

41.995,38

1.120,44

3.636,93

168,93

125,31
1.254,13
351,13
5.561,48
2.016,01
31.584,75
11.047,51
0,00
423,27
0,00
679,30

0,00
0,00
151,11
0,00
0,00
0,00
0,00
0,00
0,18
160,75
38,77

3,67
0,00
44,81
0,00
0,00
426,88
0,00
426,88
0,00
3.052,03
109,53

0,54
0,00
15,31
0,00
0,00
0,00
0,00
0,00
12,02
133,17
7,89

8.960,34

5.166,36

48,13

1.432,44

2.328,99
6.631,35

1.183,10
3.983,26

6,43
41,70

118,33
1.314,12

0,00
47,54
69,78
0,00
0,00
0,00
0,00
0,00
0,00

21,73

0,00
0,00
21,63
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,10

71,39

71,39
0,00

14,77
0,00
157,84
85,09
0,00
16,53
0,00
0,00
37,90

3.904,87
684,20
3.177,20
344,32
651,45
913,89
881,17
2.179,51
616,94

4,34
0,76
3,53
0,38
0,72
1,02
0,98
2,42
0,69

3.904,87
684,20
3.177,20
344,32
651,45
913,89

616,94

2,24

23,33

46.966,74

52,25

1.967,72

0,07
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,20
21,36
1,70

129,59
1.254,13
584,00
5.561,48
2.016,01
32.011,63
11.047,51
426,88
435,66
3.367,31
837,29

0,14
1,40
0,65
6,19
2,24
35,61
12,29
0,47
0,48
3,75
1,79 -

129,59
1.254,13
584,00

-

393,07

16.071,74

17,02

15.302,11

84,48
308,59

3.792,72
12.279,02

4,22
12,80

3.792,72
11.509,40

44,48

37,34

14,17
2,48
11,53
1,25
2,36
3,32

7,14

0,47
4,55
2,12

55,52

13,76
41,76

100,00
0,00

0,00
0,00

TOTAL
in %

of which:

TOTAL MANUFACTURING
in %

74.216,03
82,57

16.815,55
61,01

7.166,38
7,97

6.022,39
21,85

4.352,25
4,84

763,81
2,77

3.211,62
3,57

3.045,34
11,05

210,45
0,23

210,34
0,76

728,54
0,81

705,28
2,56

89.885,26
0,00

27.562,71
0,00

100,00
0,00

27.562,71
0,00

0,00
0,00

27.562,71
0,00

122

Table A6/1
Total State aid 1995 - 1999

AUSTRIA

SECTOR / OBJECTIVE

1995

1996

1997

1998

€

million
1999

11 Agriculture
12 Fisheries

1.339,0
0,0

1.230,4
0,0

1.077,3
0,0

996,0
0,0

904,8
0,0

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

-Research and development
-Environment
-SME
-Commerce
-Energy saving
-Rescue and restructuring
-Employment aid
-Training aid
-Other objectives

22 Particular Sectors
of which:
-Steel
-Shipbuilding
-Other manufacturing sectors
-Coal - aid to current production
-Coal - other aid
-Transport
of which -Regulation 1191/69

-Airline services

-Tourism
-Financial services
-Media and culture

1.044,9

1.027,3

1.063,7

1.007,3

987,2

357,6

343,1

373,3

290,2

285,7

95,8
44,2
62,3
0,0
5,8
121,5
28,0
0,0
0,0

147,3
47,2
63,1
0,0
7,9
58,1
19,5
0,0
0,0

176,8
49,7
87,6
0,0
4,2
24,7
30,4
0,0
0,0

155,1
55,2
62,2
0,0
1,5
12,4
3,8
0,0
0,0

145,6
54,9
52,7
0,0
2,2
9,2
21,2
0,0
0,0

687,3

684,2

690,4

717,1

701,4

3,5
0,0
9,6
0,0
0,0
637,2
621,3
0,0
36,9
0,0
0,0

3,5
0,0
9,4
0,0
0,0
640,8
627,8
0,0
30,5
0,0
0,0

3,5
0,0
8,2
0,0
0,0
650,8
640,9
0,0
27,9
0,0
0,0

3,5
0,0
9,0
0,0
0,0
661,9
636,9
0,0
42,6
0,0
0,0

3,4
0,0
8,3
0,0
0,0
654,2
631,3
0,0
35,5
0,0
0,0

3 Regional aid
of which:

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

98,1

124,0

163,5

172,0

169,4

54,7
43,4

92,9
31,2

133,8
29,7

141,1
30,9

138,4
31,0

TOTAL
of which:
Total manufacturing sector
% of total

2.481,9

2.381,6

2.304,4

2.175,3

2.061,4

440,8
17,8

460,4
19,3

518,1
22,5

471,0
21,7

445,6
21,6

123

Table A6/2
Total state aid 1995 - 1999

BELGIUM

SECTOR / OBJECTIVE

1995

1996

1997

1998

€

million
1999

11 Agriculture
12 Fisheries

238,2
1,3

245,0
1,3

257,5
1,8

211,0
6,1

271,6
6,1

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

-Research and development
-Environment
-SME
-Commerce
-Energy saving
-Rescue and restructuring
-Employment aid
-Training aid
-Other objectives

22 Particular Sectors
of which:
-Steel
-Shipbuilding
-Other manufacturing sectors
-Coal - aid to current production
-Coal - other aid
-Transport
of which -Regulation 1191/69

-Airline services

-Tourism
-Financial services
-Media and culture

2.787,2

2.960,4

2.633,7

2.685,9

2.719,3

460,8

521,0

511,0

571,6

615,5

109,3
10,0
89,9
32,5
0,7
0,8
82,4
8,7
126,4

120,7
4,7
123,3
24,6
0,1
0,0
110,0
8,6
129,1

128,6
1,6
109,5
7,7
0,7
21,2
105,7
9,5
126,5

98,6
9,9
127,0
3,7
0,7
3,8
100,5
46,2
181,2

148,1
5,0
212,6
3,0
0,1
0,0
97,9
33,0
115,8

2.326,3

2.439,5

2.122,7

2.114,3

2.103,9

3,3
0,0
292,3
0,0
0,0
2.018,7
354,4
0,0
6,6
0,0
5,5

4,2
0,0
278,8
0,0
0,0
2.140,7
327,5
0,0
8,6
0,0
7,3

2,2
0,0
0,0
0,0
0,0
2.110,5
330,4
0,0
9,2
0,0
0,8

0,0
0,0
0,7
0,0
0,0
2.102,5
329,1
0,0
6,7
0,0
4,4

0,0
0,0
0,7
0,0
0,0
2.087,3
330,5
0,0
6,0
0,0
9,8

3 Regional aid
of which:

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

240,9

258,4

228,7

214,0

219,8

240,9
0,0

258,4
0,0

228,7
0,0

214,0
0,0

219,8
0,0

TOTAL
of which:
Total manufacturing sector
% of total

3.267,6

3.465,2

3.121,7

3.117,1

3.216,8

906,2
27,7

943,7
27,2

626,7
20,1

639,6
20,5

705,1
21,9

124

Table A6/3
Total state aid 1995 - 1999

DENMARK

SECTOR / OBJECTIVE

1995

1996

1997

1998

€

million
1999

11 Agriculture
12 Fisheries

284,6
7,3

252,4
10,6

249,5
11,6

228,0
8,2

240,3
8,0

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

-Research and development
-Environment
-SME
-Commerce
-Energy saving
-Rescue and restructuring
-Employment aid
-Training aid
-Other objectives

22 Particular Sectors
of which:
-Steel
-Shipbuilding
-Other manufacturing sectors
-Coal - aid to current production
-Coal - other aid
-Transport
of which -Regulation 1191/69

-Airline services

-Tourism
-Financial services
-Media and culture

3 Regional aid
of which:

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

1.227,9

1.380,9

1.254,2

1.285,3

1.713,6

622,0

716,0

702,6

883,4

928,5

141,1
113,6
51,4
45,4
150,4
0,0
119,9
0,2
0,0

144,3
191,8
41,7
30,6
129,0
0,0
97,9
80,7
0,0

163,3
223,0
24,2
46,5
138,4
0,0
2,4
104,8
0,0

165,5
258,6
7,2
36,7
139,7
0,0
127,8
147,8
0,0

156,6
248,4
8,2
24,7
161,7
0,0
145,8
183,2
0,0

605,9

664,9

551,6

401,9

785,1

0,0
69,1
0,4
0,0
0,0
511,1
0,0
0,0
9,4
0,0
15,8

17,0

17,0
0,0

0,0
89,8
0,8
0,0
0,0
548,3
0,0
0,0
13,0
0,0
12,9

13,4

13,4
0,0

0,0
82,9
1,3
0,0
0,0
444,9
227,4
0,0
5,6
0,0
16,8

15,4

15,4
0,0

0,0
8,9
3,7
0,0
0,0
362,2
198,3
0,0
10,1
0,0
17,0

14,9

14,9
0,0

0,0
18,6
2,8
0,0
0,0
734,9
460,6
0,0
6,3
0,0
22,5

12,8

12,8
0,0

TOTAL
of which:
Total manufacturing sector
% of total

1.536,8

1.657,4

1.530,7

1.536,4

1.974,8

588,5
38,3

641,4
38,7

695,0
45,4

635,3
41,3

633,8
32,1

125

Table A6/4
Total state aid 1995 - 1999

GERMANY

SECTOR / OBJECTIVE

1995

1996

1997

1998

€

million
1999

11 Agriculture
12 Fisheries

2.622,3
17,0

2.220,9
15,2

1.827,2
11,3

1.589,0
23,2

1.575,3
23,0

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

-Research and development
-Environment
-SME
-Commerce
-Energy saving
-Rescue and restructuring
-Employment aid
-Training aid
-Other objectives

22 Particular Sectors
of which:
-Steel
-Shipbuilding
-Other manufacturing sectors
-Coal - aid to current production
-Coal - other aid
-Transport
of which -Regulation 1191/69

-Airline services

-Tourism
-Financial services
-Media and culture

22.531,8

20.228,3

19.359,4

18.783,9

17.358,1

3.403,5

3.298,9

3.086,9

3.121,7

2.810,5

1.177,8
165,2
1.536,7
11,7
319,1
0,7
54,7
92,9
44,6

1.299,7
137,4
1.435,4
10,7
172,9
10,0
99,9
64,7
68,2

1.206,0
129,3
1.414,6
6,7
152,5
30,4
78,0
47,9
21,5

1.259,5
142,0
1.327,7
3,4
152,1
3,5
184,6
31,7
17,3

1.239,2
114,2
1.061,2
3,7
148,0
17,8
182,6
35,3
8,4

19.128,4

16.929,4

16.272,5

15.662,1

14.547,6

79,8
902,1
140,5
4.689,9
104,6
13.042,1
4.296,2
810,9
19,5
143,2
6,5

4,9
381,3
140,2
5.302,0
103,5
10.823,6
4.253,0
0,0
21,6
144,4
8,1

2,1
429,7
152,4
4.963,1
415,7
10.139,2
4.229,2
0,0
17,5
143,4
9,4

0,0
286,3
152,3
4.274,0
513,4
10.278,0
4.470,3
0,0
14,8
141,8
1,6

0,0
192,0
154,1
4.160,4
374,5
9.521,7
4.314,2
0,0
144,8
0,0
0,1

3 Regional aid
of which:

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

10.348,5

9.609,3

7.891,4

7.106,9

4.598,3

712,9
9.635,5

741,8
8.867,6

726,5
7.164,8

767,5
6.339,4

846,2
3.752,1

TOTAL
of which:
Total manufacturing sector
% of total

35.519,6

32.073,8

29.089,3

27.503,0

23.554,6

14.726,7
41,5

13.270,0
41,4

11.436,7
39,3

10.451,0
38,0

7.537,0
32,0

126

Table A6/5
Total state aid 1995 - 1999

GREECE

SECTOR / OBJECTIVE

1995

1996

1997

1998

€

million
1999

11 Agriculture
12 Fisheries

148,1
0,9

173,3
0,8

164,3
16,8

164,0
23,2

142,6
22,6

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

-Research and development
-Environment
-SME
-Commerce
-Energy saving
-Rescue and restructuring
-Employment aid
-Training aid
-Other objectives

22 Particular Sectors
of which:
-Steel
-Shipbuilding
-Other manufacturing sectors
-Coal - aid to current production
-Coal - other aid
-Transport
of which -Regulation 1191/69

-Airline services

-Tourism
-Financial services
-Media and culture

749,1

749,1

750,2

575,9

552,4

3,3

3,3
0,0
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
0,0

0,3

0,3
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0

33,6

0,3
0,3
23,1
9,7
0,0
0,0
0,0
0,0
0,3

30,0

0,0
2,1
17,3
9,0
0,0
0,0
0,0
0,0
1,5

745,8

746,0

749,9

542,3

522,4

0,0
0,0
0,0
0,0
0,0
745,8
0,0
447,7
0,0
0,0
0,0

0,0
0,0
0,0
0,0
0,0
746,0
0,0
416,9
0,0
0,0
0,0

21,6
1,1
0,0
0,0
0,0
727,1
0,0
390,3
0,0
0,0
0,0

0,0
21,4
0,0
0,0
0,0
520,7
0,0
42,3
0,0
0,0
0,2

0,0
0,0
0,0
0,0
0,0
515,3
0,0
0,0
0,0
0,0
7,1

3 Regional aid
of which:

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

721,8

601,3

677,1

446,9

378,8

0,0
721,8

0,0
601,3

0,0
677,1

0,0
446,9

0,0
378,8

TOTAL
of which:
Total manufacturing sector
% of total

1.620,0

1.524,6

1.608,3

1.210,0

1.096,5

725,2
44,8

604,4
39,6

700,1
43,5

501,9
41,5

408,8
37,3

127

Table A6/6
Total state aid 1995 - 1999

SPAIN

SECTOR / OBJECTIVE

1995

1996

1997

1998

€

million
1999

11 Agriculture
12 Fisheries

1.183,7
74,4

1.270,4
33,0

1.139,6
32,3

1.080,0
71,2

1.298,2
69,2

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

-Research and development
-Environment
-SME
-Commerce
-Energy saving
-Rescue and restructuring
-Employment aid
-Training aid
-Other objectives

22 Particular Sectors
of which:
-Steel
-Shipbuilding
-Other manufacturing sectors
-Coal - aid to current production
-Coal - other aid
-Transport
of which -Regulation 1191/69

-Airline services

-Tourism
-Financial services
-Media and culture

5.898,2

5.064,3

4.831,5

4.740,9

3.984,3

842,3

1.039,8

1.344,9

1.241,0

1.330,8

109,4
40,3
189,0
2,6
26,6
27,2
84,6
340,9
21,7

130,2
23,2
338,3
2,7
9,1
17,9
114,7
379,0
24,7

233,7
15,4
244,4
1,6
22,6
158,8
96,8
544,4
27,0

199,8
15,4
257,3
1,5
25,4
11,2
85,9
616,1
28,4

218,9
19,3
220,2
1,1
26,9
1,6
174,7
637,6
30,4

5.055,9

4.024,4

3.486,6

3.499,9

2.653,5

1.322,7
329,8
254,5
844,1
269,3
1.982,0
308,8
0,0
33,2
0,0
20,2

159,0
793,2
171,2
777,0
256,4
1.807,2
305,4
0,0
35,6
0,0
24,9

73,2
546,8
158,1
714,9
369,2
1.577,3
302,4
0,0
27,9
0,0
19,3

29,9
686,0
158,1
758,8
400,5
1.423,7
293,9
0,0
20,3
0,0
22,6

29,1
58,8
132,1
703,6
332,7
1.351,0
226,5
0,0
15,3
0,0
30,9

3 Regional aid
of which:

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

284,8

286,9

303,2

327,0

382,0

210,9
73,9

197,0
89,9

218,6
84,6

239,1
88,0

289,3
92,7

TOTAL
of which:
Total manufacturing sector
% of total

7.441,1

6.654,5

6.306,6

6.219,1

5.733,7

2.608,6
35,1

1.956,4
29,4

1.785,0
28,3

1.740,1
28,0

1.120,4
19,5

128

Table A6/7
Total state aid 1995 - 1999

FINLAND

SECTOR / OBJECTIVE

1995

1996

1997

1998

€

million
1999

11 Agriculture
12 Fisheries

2.214,0
4,6

1.606,4
2,4

1.519,3
1,9

1.528,0
1,7

1.356,8
1,7

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

-Research and development
-Environment
-SME
-Commerce
-Energy saving
-Rescue and restructuring
-Employment aid
-Training aid
-Other objectives

22 Particular Sectors
of which:
-Steel
-Shipbuilding
-Other manufacturing sectors
-Coal - aid to current production
-Coal - other aid
-Transport
of which -Regulation 1191/69

-Airline services

-Tourism
-Financial services
-Media and culture

3 Regional aid
of which:

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

423,3

378,3

489,5

461,9

417,6

367,7

311,5

347,4

373,1

357,4

139,5
11,6
79,9
45,4
12,7
0,0
78,7
0,0
0,0

55,6

0,0
0,0
7,2
0,0
0,0
48,4
44,0
0,0
0,0
0,0
0,0

105,3

105,3
0,0

119,1
6,4
75,7
41,4
13,9
0,0
55,0
0,0
0,0

151,9
4,9
76,9
54,8
9,8
0,0
49,1
0,0
0,0

66,8

142,1

0,0
0,0
11,2
0,0
0,0
47,7
44,2
0,0
0,0
0,0
7,9

67,4

67,4
0,0

0,0
76,4
8,3
0,0
0,0
43,6
40,7
0,0
0,0
0,0
13,8

63,0

63,0
0,0

157,1
5,0
71,9
35,1
53,8
0,0
50,1
0,0
0,0

88,8

0,0
26,6
6,0
0,0
0,0
41,1
38,3
0,0
0,0
0,0
15,0

68,4

68,4
0,0

165,7
6,6
58,9
32,6
57,0
0,0
36,5
0,0
0,0

60,1

0,0
1,8
7,1
0,0
0,0
38,7
37,2
0,0
0,0
0,0
12,5

72,4

72,4
0,0

TOTAL
of which:
Total manufacturing sector
% of total

2.747,2

2.054,6

2.073,7

2.060,0

1.848,4

401,5
14,6

335,1
16,3

445,9
21,5

423,9
20,6

402,2
21,8

129

Table A6/8
Total state aid 1995 - 1999

FRANCE

SECTOR / OBJECTIVE

1995

1996

1997

1998

€

million
1999

11 Agriculture
12 Fisheries

3.537,0
48,2

3.581,9
25,1

3.343,9
24,8

2.768,0
24,6

3.077,7
24,5

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

-Research and development
-Environment
-SME
-Commerce
-Energy saving
-Rescue and restructuring
-Employment aid
-Training aid
-Other objectives

22 Particular Sectors
of which:
-Steel
-Shipbuilding
-Other manufacturing sectors
-Coal - aid to current production
-Coal - other aid
-Transport
of which -Regulation 1191/69

-Airline services

-Tourism
-Financial services
-Media and culture

10.909,8

13.888,4

14.297,9

13.577,9

10.449,4

1.955,6

2.245,4

3.437,3

1.613,2

1.684,2

1.104,6
43,2
242,1
357,0
21,9
32,2
54,9
94,2
5,5

1.422,6
34,6
391,7
196,9
24,7
69,6
54,1
46,4
4,6

1.250,8
30,6
297,3
107,0
21,4
1.719,6
6,0
0,0
4,6

1.145,4
30,3
237,7
137,8
21,2
30,3
6,0
0,0
4,5

1.158,8
30,2
269,9
135,8
48,1
30,7
6,1
0,1
4,5

8.954,2

11.643,1

10.860,6

11.964,8

8.765,2

0,0
55,9
212,0
58,3
627,6
6.842,6
1.349,4
785,4
0,0
1.002,0
155,8

8,0
47,4
201,9
88,1
595,4
6.865,5
1.317,3
774,1
0,0
3.678,2
158,5

0,0
9,0
196,6
375,1
591,4
6.085,4
1.463,9
0,0
0,0
3.214,1
388,9

0,0
279,8
180,2
383,7
614,9
5.996,0
1.405,3
0,0
0,0
4.192,6
317,7

0,0
486,6
185,4
350,7
624,0
6.070,4
1.534,4
0,0
25,6
799,9
222,4

3 Regional aid
of which:

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

1.086,7

1.272,3

1.950,0

2.188,1

1.759,3

659,1
427,6

765,8
506,5

1.300,3
649,7

1.341,1
847,1

1.194,6
564,7

TOTAL
of which:
Total manufacturing sector
% of total

15.581,7

18.767,7

19.616,6

18.558,6

15.310,9

3.161,1
20,3

3.674,5
19,6

5.586,9
28,5

4.255,3
22,9

4.109,4
26,8

130

Table A6/9
Total state aid 1995 - 1999

IRELAND

SECTOR / OBJECTIVE

1995

1996

1997

1998

€

million
1999

11 Agriculture
12 Fisheries

110,2
11,1

113,7
14,7

78,4
14,1

79,0
13,3

340,7
12,8

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

-Research and development
-Environment
-SME
-Commerce
-Energy saving
-Rescue and restructuring
-Employment aid
-Training aid
-Other objectives

22 Particular Sectors
of which:
-Steel
-Shipbuilding
-Other manufacturing sectors
-Coal - aid to current production
-Coal - other aid
-Transport
of which -Regulation 1191/69

-Airline services

-Tourism
-Financial services
-Media and culture

376,2

380,8

432,2

865,3

875,6

104,1

142,5

144,2

567,1

544,4

15,9
0,0
2,0
4,9
0,1
0,0
30,5
23,8
26,8

23,2
0,0
3,8
5,0
1,1
0,0
57,4
30,1
21,8

13,6
0,0
5,0
5,2
2,6
0,0
72,2
23,8
21,9

10,2
0,0
3,3
3,2
2,4
0,0
73,5
19,1
455,4

12,6
0,0
4,1
3,2
5,1
0,0
111,9
21,3
386,2

272,1

238,3

288,0

298,2

331,2

0,0
0,0
10,5
0,0
0,0
219,8
87,2
71,9
1,1
35,9
4,7

53,8
0,0
4,4
0,0
0,0
140,3
111,8
0,0
0,9
35,1
3,9

0,0
0,0
4,6
0,0
0,0
141,7
85,6
0,0
0,5
137,2
4,0

0,0
0,0
4,5
0,0
0,0
136,6
85,6
0,0
0,8
151,4
5,0

0,0
0,0
4,4
0,0
0,0
131,1
131,1
0,0
0,0
167,9
27,8

3 Regional aid
of which:

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

158,5

206,3

197,1

175,5

109,9

0,0
158,5

0,0
206,3

0,0
197,1

0,0
175,5

0,0
109,9

TOTAL
of which:
Total manufacturing sector
% of total

656,1

715,5

721,8

1.133,0

1.339,0

218,9
33,4

319,5
44,7

249,9
34,6

654,4
57,8

525,5
39,2

131

Table A6/10
Total state aid 1995 - 1999

ITALY

SECTOR / OBJECTIVE

1995

1996

1997

1998

€

million
1999

11 Agriculture
12 Fisheries

1.468,0
115,6

1.390,4
84,9

1.669,0
82,8

1.625,0
80,7

1.595,2
79,5

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

-Research and development
-Environment
-SME
-Commerce
-Energy saving
-Rescue and restructuring
-Employment aid
-Training aid
-Other objectives

22 Particular Sectors
of which:
-Steel
-Shipbuilding
-Other manufacturing sectors
-Coal - aid to current production
-Coal - other aid
-Transport
of which -Regulation 1191/69

-Airline services

-Tourism
-Financial services
-Media and culture

9.733,5

10.426,5

8.151,3

8.216,7

6.810,0

2.467,2

3.010,4

1.645,6

1.435,4

1.355,7

308,8
32,5
823,0
17,0
84,8
1.040,1
37,6
0,0
123,4

314,6
30,9
831,6
15,9
47,7
1.635,3
72,4
0,0
62,0

340,1
10,8
819,7
6,0
45,4
349,9
11,5
0,0
62,2

186,2
21,2
599,3
2,0
14,9
255,2
339,6
0,0
17,0

306,2
14,7
646,6
0,4
20,6
46,3
307,3
0,0
13,7

7.266,3

7.416,1

6.505,6

6.781,2

5.454,2

182,2
453,5
59,7
0,0
0,0
6.322,2
716,9
0,0
135,9
0,0
112,7

191,6
305,1
51,9
0,0
0,0
5.294,3
668,8
0,0
262,9
1.199,4
110,9

210,9
103,9
42,3
0,0
0,0
5.810,3
652,9
641,7
213,6
31,7
93,0

6,1
221,9
60,7
0,0
0,0
5.035,1
636,0
0,0
410,0
957,1
90,3

0,0
114,2
37,6
0,0
0,0
5.022,6
626,7
0,0
135,5
139,3
5,1

3 Regional aid
of which:

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

9.247,4

6.524,4

6.676,5

3.777,5

2.052,1

154,6
9.092,8

126,8
6.397,6

128,5
6.548,0

184,1
3.593,4

126,5
1.925,6

TOTAL
of which:
Total manufacturing sector
% of total

20.564,5

18.426,1

16.579,6

13.699,9

10.536,8

12.372,3
60,2

10.011,0
54,3

8.667,6
52,3

5.162,2
37,7

3.252,3
30,9

132

Table A6/11
Total state aid 1995 - 1999

LUXEMBOURG

SECTOR / OBJECTIVE

1995

1996

1997

1998

€

million
1999

11 Agriculture
12 Fisheries

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

-Research and development
-Environment
-SME
-Commerce
-Energy saving
-Rescue and restructuring
-Employment aid
-Training aid
-Other objectives

22 Particular Sectors
of which:
-Steel
-Shipbuilding
-Other manufacturing sectors
-Coal - aid to current production
-Coal - other aid
-Transport
of which -Regulation 1191/69

-Airline services

-Tourism
-Financial services
-Media and culture

3 Regional aid
of which:

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

27,3
0,0

43,8

12,1

4,0
0,3
7,4
0,4
0,0
0,0
0,0
0,0
0,0

31,7

2,0
0,0
0,1
0,0
0,0
29,6
19,1
0,0
0,0
0,0
0,0

33,9

33,9
0,0

32,5
0,0

90,3

16,2

3,0
1,9
11,0
0,3
0,0
0,0
0,0
0,0
0,0

74,1

0,0
0,0
0,1
0,0
0,0
74,0
50,2
0,0
0,0
0,0
0,0

30,6

30,6
0,0

35,4
0,0

30,0
0,0

29,1
0,0

91,1

183,3

199,7

13,7

2,7
2,3
8,5
0,3
0,0
0,0
0,0
0,0
0,0

17,4

4,3
1,8
10,9
0,3
0,0
0,0
0,0
0,0
0,0

19,2

6,1
2,0
10,8
0,3
0,0
0,0
0,0
0,0
0,0

77,4

165,9

180,5

0,0
0,0
0,1
0,0
0,0
77,4
65,7
0,0
0,0
0,0
0,0

35,2

35,2
0,0

0,0
0,0
0,1
0,0
0,0
163,2
72,5
0,0
0,0
0,0
2,7

32,2

32,2
0,0

0,0
0,0
0,0
0,0
0,0
177,0
68,0
0,0
0,0
0,0
3,4

17,0

17,0
0,0

TOTAL
of which:
Total manufacturing sector
% of total

105,0

153,3

161,7

245,5

245,8

48,1
45,7

46,9
30,6

48,9
30,2

49,6
20,2

36,3
14,8

133

NETHERLANDS

Table A6/12
Total state aid 1995 - 1999

SECTOR / OBJECTIVE

1995

1996

1997

1998

€

million
1999

11 Agriculture
12 Fisheries

623,0
2,5

590,6
8,7

1.525,6
5,8

859,0
4,7

1.116,4
4,6

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

-Research and development
-Environment
-SME
-Commerce
-Energy saving
-Rescue and restructuring
-Employment aid
-Training aid
-Other objectives

22 Particular Sectors
of which:
-Steel
-Shipbuilding
-Other manufacturing sectors
-Coal - aid to current production
-Coal - other aid
-Transport
of which -Regulation 1191/69

-Airline services

-Tourism
-Financial services
-Media and culture

3 Regional aid
of which:

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

1.698,8

2.156,7

1.326,5

2.120,0

2.282,5

385,4

479,8

489,7

475,3

454,3

118,2
64,9
23,6
16,7
144,1
0,0
0,6
0,0
17,3

116,8
63,7
23,8
22,9
219,5
7,3
1,6
0,0
24,1

141,4
80,4
20,6
30,3
187,5
0,0
0,1
0,0
29,5

151,8
93,3
20,4
34,4
154,9
0,0
0,0
0,0
20,4

148,5
74,2
24,0
7,4
151,2
0,0
0,0
0,0
48,9

1.313,4

1.676,9

836,8

1.644,7

1.828,2

0,0
61,6
0,0
0,0
0,0
1.229,8
135,4
0,0
0,0
0,0
22,1

119,2

119,2
0,0

0,0
72,2
0,0
0,0
0,0
1.583,1
109,2
0,0
0,0
0,0
21,6

82,1

82,1
0,0

0,0
21,2
0,0
0,0
0,0
793,7
156,2
0,0
0,0
0,0
21,9

77,4

77,4
0,0

0,0
23,1
0,0
0,0
0,0
1.598,7
256,7
0,0
0,0
0,0
22,9

0,0
15,2
0,0
0,0
0,0
1.763,6
228,7
0,0
0,0
0,0
49,4

70,5

70,5
0,0

85,2

85,2
0,0

TOTAL
of which:
Total manufacturing sector
% of total

2.443,5

2.838,1

2.935,2

3.054,2

3.488,7

565,6
23,1

632,4
22,3

588,2
20,0

568,9
18,6

554,7
15,9

134

Table A6/13
Total state aid 1995 - 1999

PORTUGAL

SECTOR / OBJECTIVE

1995

1996

1997

1998

€

million
1999

11 Agriculture
12 Fisheries

142,1
1,7

165,4
3,5

315,5
2,2

303,0
2,0

284,7
2,0

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

-Research and development
-Environment
-SME
-Commerce
-Energy saving
-Rescue and restructuring
-Employment aid
-Training aid
-Other objectives

22 Particular Sectors
of which:
-Steel
-Shipbuilding
-Other manufacturing sectors
-Coal - aid to current production
-Coal - other aid
-Transport
of which -Regulation 1191/69

-Airline services

-Tourism
-Financial services
-Media and culture

959,4

1.293,8

1.706,6

992,3

895,3

296,5

317,1

215,8

243,0

229,4

15,9
0,0
0,4
0,6
5,3
1,0
123,0
86,1
64,1

13,3
0,0
0,0
0,6
8,8
0,9
114,9
68,9
109,8

12,9
0,0
9,7
0,6
10,9
1,1
27,4
68,7
84,6

12,4
0,0
26,1
0,5
7,8
13,9
32,9
75,2
74,3

12,0
0,0
32,0
0,4
7,9
0,0
43,0
69,3
64,7

663,0

976,6

1.490,8

749,3

665,9

55,5
0,0
1,1
0,0
1,0
384,2
67,5
274,4
38,4
1,9
16,4

0,0
0,0
9,0
0,0
0,9
276,4
55,8
212,6
55,3
2,8
2,8

2,3
34,6
25,2
0,0
0,0
227,0
19,3
206,4
33,4
1,2
10,2

0,7
0,0
14,9
0,0
0,0
19,8
9,9
0,0
23,9
7,0
10,6

0,3
0,0
25,0
0,0
0,0
96,0
48,0
0,0
42,2
17,6
5,1

3 Regional aid
of which:

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

186,9

632,6

1.186,6

705,8

516,8

0,0
186,9

0,0
632,6

0,0
1.186,6

0,0
705,8

0,0
516,8

TOTAL
of which:
Total manufacturing sector
% of total

1.125,7

1.491,0

2.054,2

1.330,6

1.219,1

166,4
14,8

170,6
11,4

211,8
10,3

183,7
13,8

179,5
14,7

135

Table A6/14
Total state aid 1995 - 1999

SWEDEN

SECTOR / OBJECTIVE

1995

1996

1997

1998

€

million
1999

11 Agriculture
12 Fisheries

274,2
7,6

236,9
9,1

312,5
9,0

335,0
8,8

353,8
8,8

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

-Research and development
-Environment
-SME
-Commerce
-Energy saving
-Rescue and restructuring
-Employment aid
-Training aid
-Other objectives

22 Particular Sectors
of which:
-Steel
-Shipbuilding
-Other manufacturing sectors
-Coal - aid to current production
-Coal - other aid
-Transport
of which -Regulation 1191/69

-Airline services

-Tourism
-Financial services
-Media and culture

1.684,9

1.631,7

1.233,0

1.377,6

1.229,5

416,8

415,7

236,5

284,9

314,1

61,2
16,1
45,4
0,0
26,8
0,0
201,9
65,0
0,3

65,2
15,8
44,7
0,0
26,5
0,0
199,1
64,1
0,3

87,8
30,2
43,6
0,0
26,3
0,0
27,0
21,6
0,0

98,4
100,7
40,9
0,0
22,6
0,0
5,1
17,1
0,0

81,1
148,4
26,6
0,0
38,6
0,0
0,0
19,5
0,0

1.268,1

1.216,0

996,5

1.092,6

915,3

0,0
0,0
0,0
0,0
0,0
1.197,1
0,0
0,0
0,0
0,0
71,0

0,0
0,0
0,0
0,0
0,0
1.146,0
76,9
0,0
0,0
0,0
70,0

0,0
0,0
0,0
0,0
0,0
905,1
58,2
0,0
0,0
0,0
91,3

0,0
0,0
0,0
0,0
0,0
995,6
64,9
0,0
0,0
0,0
97,0

0,0
0,0
0,0
0,0
0,0
818,3
63,7
0,0
0,0
0,0
97,0

3 Regional aid
of which:

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

210,5

207,5

184,6

177,1

147,5

210,5
0,0

207,5
0,0

184,6
0,0

177,1
0,0

147,5
0,0

TOTAL
of which:
Total manufacturing sector
% of total

2.177,2

2.085,2

1.739,0

1.898,5

1.739,5

360,3
16,5

360,0
17,3

372,5
21,4

439,9
23,2

442,2
25,4

136

UNITED KINGDOM

Table A6/15
Total state aid 1995 - 1999

SECTOR / OBJECTIVE

1995

1996

1997

1998

€

million
1999

11 Agriculture
12 Fisheries

930,9
32,2

2.136,5
33,1

1.724,1
34,4

1.232,0
33,4

1.090,0
32,6

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

-Research and development
-Environment
-SME
-Commerce
-Energy saving
-Rescue and restructuring
-Employment aid
-Training aid
-Other objectives

22 Particular Sectors
of which:
-Steel
-Shipbuilding
-Other manufacturing sectors
-Coal - aid to current production
-Coal - other aid
-Transport
of which -Regulation 1191/69

-Airline services

-Tourism
-Financial services
-Media and culture

5.941,0

6.363,1

5.556,4

6.007,4

4.428,1

544,9

2.257,6

1.917,5

1.662,4

1.821,0

266,6
1,8
159,0
115,6
1,6
0,0
0,0
0,3
0,0

228,5
1,3
333,6
102,9
1,5
0,0
0,0
1.589,7
0,0

158,1
1,5
332,9
100,0
23,9
0,0
0,0
1.301,1
0,0

105,4
10,1
296,4
89,3
22,2
0,0
0,0
1.139,0
0,0

97,1
9,3
280,5
87,1
21,6
0,0
0,0
1.325,4
0,0

5.396,2

4.105,6

3.638,9

4.345,1

2.607,1

0,0
20,4
0,0
0,0
2.176,8
2.958,2
2.897,7
0,0
11,0
0,0
229,7

0,0
9,4
0,0
0,0
654,1
3.187,8
2.616,0
0,0
13,5
0,0
240,8

0,0
5,1
7,0
0,0
494,5
2.867,0
2.773,9
0,0
12,3
0,0
253,0

0,0
10,3
0,0
0,0
1.317,2
2.755,3
2.683,6
0,0
9,4
0,0
252,8

0,0
0,0
0,0
0,0
0,0
2.361,3
2.262,0
0,0
9,2
0,0
236,6

3 Regional aid
of which:

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

893,9

935,2

975,6

848,7

743,2

564,1
329,8

725,2
210,0

719,4
256,2

595,5
253,2

551,5
191,7

TOTAL
of which:
Total manufacturing sector
% of total

7.798,1

9.468,0

8.290,5

8.121,5

6.293,9

1.458,9
18,7

1.612,5
17,0

1.604,1
19,3

1.382,4
17,0

1.238,8
19,7

137

EUROPEAN UNION

Table A6/16
Total state aid 1995 - 1999

SECTOR / OBJECTIVE

1995

1996

1997

1998

€

million
1999

11 Agriculture
12 Fisheries

15.142,6
324,5

15.246,8
242,6

15.239,2
248,7

13.027,0
301,2

13.677,1
295,3

2 Manufacturing / Services
of which:

21 Horizontal Objectives
of which:

-Research and development
-Environment
-SME
-Commerce
-Energy saving
-Rescue and restructuring
-Employment aid
-Training aid
-Other objectives

22 Particular Sectors
of which:
-Steel
-Shipbuilding
-Other manufacturing sectors
-Coal - aid to current production
-Coal - other aid
-Transport
of which -Regulation 1191/69

-Airline services

-Tourism
-Financial services
-Media and culture

66.009,9

68.020,0

63.177,1

62.881,4

54.902,4

12.239,8

15.118,1

14.466,8

12.813,1

12.780,8

3.671,5
543,6
3.312,0
649,9
799,8
1.223,5
897,0
712,2
430,2

4.151,6
558,9
3.717,8
454,5
662,7
1.799,0
996,6
2.332,3
444,6

4.067,7
579,6
3.494,6
366,6
646,1
2.305,8
506,6
2.121,9
377,8

3.750,2
743,8
3.111,5
357,6
619,0
330,3
1.009,7
2.092,1
798,8

3.896,7
729,2
2.925,5
308,8
689,2
105,5
1.127,1
2.324,6
674,2

53.770,1

52.901,9

48.710,3

50.068,3

42.121,6

1.649,2
1.892,4
987,8
5.592,4
3.179,3
38.169,0
10.898,2
2.390,3
292,1
1.183,1
824,9

425,0
1.698,5
878,8
6.167,0
1.610,4
35.321,6
10.563,7
1.403,7
441,8
5.059,8
1.299,0

315,8
1.310,8
604,2
6.053,1
1.870,8
32.601,0
11.046,7
1.238,3
347,8
3.527,5
2.079,3

40,2
1.564,4
590,1
5.416,5
2.846,0
32.090,3
11.181,4
42,3
538,7
5.449,8
1.532,3

32,7
887,2
557,7
5.214,8
1.331,2
31.343,6
10.963,1
0,0
420,5
1.124,7
1.209,2

3 Regional aid
of which:

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

23.589,0

20.247,5

19.468,3

15.653,1

10.784,9

3.083,1
20.505,9

3.309,0
16.938,5

3.831,4
15.637,0

3.845,6
11.807,5

3.701,2
7.083,7

TOTAL
of which:
Total manufacturing sector
% of total

105.066,0 103.756,8

98.133,3

91.862,7

79.659,8

38.749,0
36,9

35.038,8
33,8

33.537,4
34,2

27.559,1
30,0

21.591,6
27,1

138

ANNEX III

COMMUNITY FUNDS AND INSTRUMENTS

139

1.

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 the ERDF, support
for External policies and the administrative costs of the Institutions are not included.

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
those who benefit from
erroneous conclusions being drawn owing to the fact
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.

that

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 for about two-thirds of 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.

Structural Operations

In July 1993 the second reform of the Structural Funds (EAGGF-Guidance, ERDF, Social
Fund, FIFG) was agreed upon. In accordance with the conclusions of the Edinburgh
European Council, the resources of the Structural Funds allocated to four Member Stated
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
141.471 million (at 1992 prices). A new instrument
over the period 1994-99 increased to
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 been accepted. These proposals set out in 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.

140

- EAGGF Guarantee

The Guarantee Section of the European Agricultural Guidance and Guarantee Fund
finances market-support and price-support operations under the common agricultural
policy (CAP) and a number of other agricultural measures. It represents the most important
sector in terms of budget expenditure (
40.440 million in 1999, or 49% of the general
budget of the European Union).

€

Between its establishment and until 1992, the CAP provided a straightforward general
for which common market
system of support
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 :

the main agricultural sectors,

for

–

–

–

the Community's external

protection at
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. Event 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
15.786 million in 1983 before surging by
3.927 million in 1973 to
€
another 40% to
22.119 million in 1986) was caused by the growing gap between the
consumption and supply of agricultural products, which widened further under the impact
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.

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,
lower prices on the internal market, with these being offset by the
bringing about

141

introduction of direct payments to producers - subject to ceilings - according to the areas
under cultivation or the number of head of livestock being reared or fattened. In addition,
accompanying measures (afforestation, early retirement and agri-environment) were
introduced; these measures are financed by the EAGGF Guarantee Fund.

The "Agenda 2000" decision represents a continuation of 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
regards arable crops and livestock
agriculture more competitive (particularly as
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 EAGGF -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, including
those for the processing and marketing of products;
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;
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;

142

–
–
–

the irrigation, protection of the environment, and restoration of landscapes;
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 specific requirement of the fisheries sector, the two were
split in 1989; 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 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.

143

- 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.

- 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 3);
the development of regions with an extremely low population density (Objective 6).

This support
investment.

is focused mainly on infrastructure, human resources and productive

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 cohesion financial Instrument.
This instrument provided Community 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.

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.

144

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 Funds 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 that 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.

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 Programmes for Research and technological development and
demonstration (FP4) were adopted in April 1994 for the period 1994-1998.
These Framework Programmes include all the Community activities in the field of
13.215
research, technological development and demonstration. Their budget amounts to
million. It has three major objectives overall:

€

–

–
–

strengthening Europe's scientific and technological base and thereby contribute to the
development of international competitiveness of Community industry and promote
the quality of the Community citizens' life.
Promote research activities deemed necessary for other Community policies.
Further co-operation and improve the co-ordination and exploitation of Community
research.

Community research activities are conducted essentially through:

–

–

indirect actions like shared cost RTD projects, or thematic networks, or concerted
actions;
direct action by the Joint Research Centre.

145

The Research DG administers the indirect actions of the Framework 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 the manufacturing sector (including SMEs). Slightly more than
950
million are allocated to support the Joint Research Centre.

€

The 5th Framework programmes for RTD and demonstration activities (including Euratom)
have been adopted for the period 1998-2002, with a budget of

14.960 million.

€

ESCS financial operations

Financial assistance is provided by 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 loans was
gradually reduced. Now new loans have been paid out since 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
technical, environmental and financial.
viable in four fundamental areas: economic,
Through the Bank's own lending operations and ability to attract other financing, the range
of funding possibilities is widened. Through the borrowing activities, the Bank contributes
to the development of capital markets throughout the Union. There is also close co-
operation with the business and banking sectors and the main international in the field.

146

European Investment Fund

The EIF is a European institution, with a specific remit to support the creation, growth and
development of Small and Medium-sized Enterprises. It intervenes mainly by means of
risk capital and guarantee instruments, either drawn from its own funds or within the
framework of mandates entrusted to it by the European Investment Bank (EIB) or the
European Union.

The EIF is a Public Private Partnership. Its tripartite shareholding includes the EIB, the
European Union represented by the European Commission, and a number of European
banks and financial institutions. The EIF acts in a complementary role to its majority
shareholder, the EIB.

According to Art. 2 of its statutes, the European Investment Fund contributes to the pursuit
of community objectives; in particular it is committed to the development of a knowledge-
based society, centred on innovation, growth and employment,
the promotion of
entrepreneurial spirit, the regional development and the cohesion of the Union.

The EIF acts independently. According to Art. 24 of its statutes, it targets appropriate
return for its shareholders.

In its role as "risk capital arm of the EIB Group", the EIF deploys the significant financial
means at its disposal to support the emergence of a performing and homogenous European
risk capital market. In doing so, its action is fully integrated within the strategy which aims
to equip Europe with an increasingly innovative and competitive economy, generating high
quality job creation.

The EIF's SME guarantee instruments facilitate access to debt finance for Small and
Medium-sized Enterprises through the intermediation of a wide range of banks and
financial institutions.

The EIF plays a catalytic role to attract private sector finance. It optimises the impact and
benefit of those operations in which it participates in close association with the financial
sector. It contributes to the diffusion of best market practices in its business fields.

The EIF may conduct its activities in the Member States, in countries that have applied to
become a member of the community and in respect of which the accession process has
commenced, or in countries adjacent to the Community insofar as cross-border projects are
involved.

147

2.

STATISTICAL DATA

1.

2.

3.

Table A sets out in global terms the financial intervention of the Community for the
years 1995 to 1999.

Table B shows other Community instruments granted for the years 1995 to 1999.

Tables C1 and C2 indicate, for the periods 1995-1997 and 1997-1999 respectively,
the average annual volume of Community intervention broken down by Member
State wherever possible.

148

4.

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
1999 Report

ISBN 92-827-9008-8
ISBN 92-828-2420-9
ISBN 92-828-5731-X
Not yet published

Research and Technological Development Activities of the EU

Annual report 1995
Annual report 1996
Annual report 1997
Annual report 1998
Annual report 1999

The Structural Funds

Annual report 1995
Annual report 1996
Annual report 1997
Annual report 1998
Annual report 1999

ISBN 92-77-93761-0
ISBN 92-78-08603-7
ISBN 92-78-23634-9
ISBN 92-78-38078-4
ISNN 0254-1475

ISBN 92-78-10829-4
ISBN 92-78-26044-4
ISBN 92-78-39641-9
ISNN 0254-1491
Not yet published

CohesionFinancial Instrument Cohesion Fund

Combined report 1993-1994
Annual report 1995
Annual report 1996
Annual report 1997
Annual report 1998
Annual report 1999

ECSC Financial report 1995
ECSC Financial report 1996
ECSC Financial report 1997
ECSC Financial report 1998
ECSC Financial report 1999

European Investment Bank

Annual report 1995
Annual report 1996
Annual report 1997
Annual report 1998
Annual report 1999

ISBN 92-827-5739-0
ISBN 92-827-9688-4
ISBN 92-827-8877-4
ISBN 92-78-39497-1
ISBN 92-828-8704-9
Not yet published
ISBN 92-827-7933-5

ISBN 92-828-0908-0
ISBN 92-828-3852-8
ISBN 92-828-7230-0
ISBN 92-828-9736-2

ISBN 92-827-6303
ISBN 92-827-9943-3
ISBN 92-828-3197-3
ISBN 92-828-5975-4
ISBN 92-828-8846-0

149

Table A

Annual Community expenditure

EAGGF Guarantee - Agriculture
EAGGF Guidance - Agriculture
EAGGF Guarantee - Fisheries
FIFG
SOCIAL FUND
REGIONAL FUND (1)
COHESION FUND
EC R&TD FRAMEWORK PROGRAMME
ECSC Grants

Resettlement grants Art.56.2(b)
Steel social Art. 56.2(b)
Coal social Art. 56.2(b)
Research Art. 55
Interest relief Art. 54/56

€

million constant

1995
36.985,7
3.920,3
42,0
518,2
4.746,6
2.065,5
2.395,3
3.225,0

1996
40.810,0
4.131,0
35,6
498,8
7.486,6
2.386,9
2.613,4
3.298,4

1997
41.557,7
4.233,0
34,3
401,2
7.722,5
2.568,2
2.842,7
3.547,9

1998
38.748,0
4.361,0
21,2
502,7
8.858,6
2.676,7
2.870,7
3.499,3

133,9
44,7
43,3
66,4
12,3
54.199,1

58,9
0,0
24,3
88,9
38,4
61.471,2

67,2
0,0
29,5
85,5
1,8
63.091,6

43,1
0,0
26,8
84,0
0,0
61.692,1

1999
39.245,0
5.486,0
21,3
746,3
8.402,4
3.052,3
3.038,3
3.248,3

30,1
0,0
18,3
78,6
0,0
63.366,8

TOTAL
(1) Part corresponding approximately to the concept of aid within the meaning of Article 87 of the Treaty

Table B

Other Community instruments

1995

1996

1997

1998

€

million constant
1999
-
27.110,6
2.718,8

20,5
25.116,0
2.599,0

ECSC (new loans issued)
European Investment Bank*
European Investment Fund**
* Financing provided within the EU
** Guarantees approved since inception in 1994 (cumulative figure)

292,6
21.908,4
1.532,3

435,5
20.115,4
1.558,2

550,9
23.368,6
2.279,0

150

Table C1

Community average annual expenditure by Member State (1995 - 1997)

EAGGF
Guarantee

EAGGF
Guidance

EAGGF
Guarantee
Fisheries

FIFG

SOCIAL
FUND

REGIONAL
FUND

COHESION
FUND

EC R&TD
Framework
Programme*

€

million constant

ECSC
GRANTS*

TOTAL

AUSTRIA
BELGIUM
DENMARK
GERMANY
GREECE
SPAIN
FINLAND
FRANCE
IRELAND
ITALY
LUXEMBOURG
NETHERLANDS
PORTUGAL
SWEDEN
UNITED KINGDOM
Technical Assistance
EC direct payments

103,9
41,2
21,8
793,4
428,3
813,5
118,8
512,5
256,0
516,1
4,0
18,7
347,2
35,8
83,7

730,8
1.285,3
1.375,2
5.849,9
2.991,9
4.614,3
444,1
9.214,8
1.874,0
4.472,6
19,5
1.806,3
714,1
489,1
3.812,4

90,1

0,0
0,2
6,2
0,2
0,4
7,5
0,0
11,7
2,8
0,3
0,0
0,1
4,1
1,0
2,8

102,1
116,7
55,0
999,3
294,2
1.447,6
87,2
618,3
344,6
869,3
4,3
214,3
541,9
60,2
896,7

0,7
8,2
21,1
29,3
28,0
201,3
9,8
33,0
11,8
35,1
0,3
7,2
38,8
15,8
30,9

1,4

7,2
22,5
5,5
256,1
299,3
619,6
30,6
183,4
75,6
363,9
0,7
18,2
251,5
11,0
195,2

493,1
1.411,1

239,9

471,0

2,1

TOTAL

39.784,5

4.094,8

37,3

472,7

6.651,9

2.340,2

2.617,1

3.357,1
3.357,1

231,7
231,7

* It is not possible to effect a breakdown by Member State

Table C2

944,7
1.474,1
1.484,8
7.928,2
4.535,2
9.114,8
690,6
10.573,8
2.804,6
6.257,3
28,9
2.064,9
2.368,6
612,9
5.021,7
2,1
91,5
3.588,8
59.587,3

Community average annual expenditure by Member State (1997 - 1999)

EAGGF
Guarantee

EAGGF
Guidance

EAGGF
Guarantee
Fisheries

FIFG

SOCIAL
FUND

REGIONAL
FUND

COHESION
FUND

EC R&TD
Framework
Programme*

ECSC
GRANTS*

TOTAL

1121,6
1185,5
1342,0
8240,5
4401,7
9956,1
898,3
11193,4
2710,1
7382,4
35,3
1855,5
2346,4
1037,2
5371,6
1,2
51,1
3586,8
62716,7

AUSTRIA
BELGIUM
DENMARK
GERMANY
GREECE
SPAIN
FINLAND
FRANCE
IRELAND
ITALY
LUXEMBOURG
NETHERLANDS
PORTUGAL
SWEDEN
UNITED KINGDOM
Technical Assistance
CE direct payments

133,0
53,0
30,3
817,0
347,6
899,3
135,2
698,0
176,7
893,2
8,1
27,3
307,0
51,5
116,2

847,9
944,4
1213,4
5721,9
2642,7
5025,8
572,6
9216,7
1815,5
4663,2
21,0
1484,3
649,7
751,7
4228,4

50,9

0,0
0,1
2,1
-0,1
0,1
7,6
0,0
8,7
1,5
0,0
0,0
0,1
2,8
0,4
2,3

121,1
145,6
66,6
1349,3
535,0
1619,5
127,5
930,8
370,3
1267,8
5,2
294,9
576,5
177,0
740,6

0,0
1,5
23,4
23,6
34,7
224,3
1,6
59,2
12,2
85,9
0,0
14,5
46,5
2,0
20,5

0,2

19,6
40,8
6,3
328,8
318,4
568,5
61,4
280,1
73,8
472,3
0,9
34,3
242,3
54,5
263,8

523,2
1611,1

260,1

521,6

1,2

TOTAL
* It is not possible to effect a breakdown by Member State

39850,2

4693,4

25,6

550,0

8327,8

2765,7

2917,2

3431,8
3431,8

155,0
155,0

151