WORLD TRADE
ORGANIZATIONG/SCM/N/38/EEC/Add.13
21 December 1998
(98-5131)
Committee on Subsidies
and Countervailing MeasuresOriginal:  Spanish
SUBSIDIES
New and Full Notifications Pursuant to Article XVI:1
of the GATT 1994 and Article 25 of the Agreement
on Subsidies and Countervailing Measures
EUROPEAN COMMUNITIES
Addendum
The following addendum to the notification of  the European Community relates to subsidy
programmes of Spain .G/SCM/N/38/EEC/Add.13
Page 2
SPAIN
TABLE OF CONTENTS
Page
Central Admi nistration ......................................................................................................... ... 3
1. Fisheries.................................................................................................................... ........... 3
- Cofinanced programmes ................................................................................... 3
- Special economic aid to shipowners and crews affected
by the stoppage of fishing................................................................................. 4
2. Industry and energy .......................................................................................................... .5
- Promotion of the economic and social sectors of the
agri-food industry ............................................................................................. 5
- Mining (other than energy) ............................................................................... 5
- Energy saving and efficiency plan.................................................................... 7
- Aid to shipbuilding ........................................................................................... 8
- Interest subsidy for Sh ipbuilding Loans ........................................................... 9
- Support initiative for technology, quality and industrial
safety (ATYCA) ............................................................................................. 10
- R&D plan for the ae ronautical sector ............................................................. 12
- Aid under technological programmes connected with
the SEAT modern ization plan......................................................................... 13
3. Small and medium en terprises (SMEs) .......................................................................... 14
- Small and medium enterprises business
development in itiativ e..................................................................................... 14
- ARTE/SME programme ................................................................................. 16
4. Environmental subsidies.................................................................................................. 17
- Protection and enhancemen t of the envi ronment............................................ 17
5. Regional subsidies........................................................................................................... .. 18
- Regional economic incentive scheme............................................................. 18
Autonomous Communities..................................................................................................... 21G/SCM/N/38/EEC/Add.13
Page 3
1. Fisheries
1997 budget - cofinanced part of national aid
Pursuant to Regulation 3699/93 setting out the criteria and conditions for the Community's
structural measures in fisheries, aquaculture and the processing and marketing of their products, IFOP
(Royal Decree 798/1995 of 19 May), th e following aid has been granted:
Individual compensatory premiums:
Ptas 147.3 million.  Transferred to the Autonomous Communities.
Subsidies for the improvement of fishing:
Ptas 69.6 million.  Contributions received from the European Social Fund.
Promotion of Aquaculture:
Ptas 200 million.  Transferred to the Autonomous Communities.
Marine cultivation plans:
Ptas 90 million.  Transferred to the Autonomous Communities.
Reorganization and renovation of the fishing fleet:
- Building:  Ptas 235.4 million- Modernization:  Ptas 5.6 million- Definitive stoppage:  Ptas 18.9 million- Definitive stoppage in the Basque Country:  Ptas 1,135 million
- Transfers to Autonomous Communities:  Ptas 4,181 million
- Temporary stoppage:  Ptas 768.2 million.  Under this heading Ptas 392.9 million were
also transferred to the General Treasury of Social Security for aid to crews affected
by the biological halt.
Conversion of the fishing fleet:
- Temporary business associations:  Ptas 491.9 million
- Establishment of joint ventures:  Ptas 2,360.3 million
Compensatory early retirement as a result of the reorganization of the fishing fleet:
Ptas 75 million transferred to the Autonomous Communities.G/SCM/N/38/EEC/Add.13
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Aid to shipowners and crews affected by the stoppage of fishing
1. Title of the subsidy programme
Special economic aid to shipowners and crews affected by the stoppage of fishing.
2. Period covered by the notification
1997 financial year
3. Policy objective and/or purpose of the subsidy
In accordance with Article 14 of Council Regulation 3699/93, the requisite aid is provided for
owners and crews of fishing vessels fishing for cephalopods and trawling for black hake in the
Moroccan fishing grounds, under the fishing agreement between the European Union and the
Kingdom of Morocco, on account of the biological halt to fishing during March and April 1997.
4. Authority
Order of 20 March 1997 (BOE, 25 March)
5. Form of the subsidy
Non-repayable subsidies
6. To whom the subsidy is provided
Shipowners and crews in the fishing sector
7. Amount of the subsidy
Aid to shipowners Number of vessels
Ptas 768.19 million 110Aid to crews Number of crews
Ptas 477.43 million 1,284
8. Duration of the subsidy
From 1 March to 30 April 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
No effect on tradeG/SCM/N/38/EEC/Add.13
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2. Industry and energy
Promotion of the economic and social sectors of the agri-food industry
1. Title of the subsidy programme
Promotion of the economic and social sectors of the agri-food industry
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To promote the implementation of technical assistance and management plans for the
economic and social sectors of the food industry.
4. Authority
Order of 4 July 1985 establishing subsidies for technical assistance and management plans for
agri-food industries.
5. Form of the subsidy
Non-repayable grant
6. Recipients/beneficiaries
Associations of firms in the agri-food sector, associations of agricultural producers, trade
unions in the agri-food industry, professional associ ations, foundations and other organizations whose
objectives are connected with the agricultural and food industry.
7. Amount of the subsidy
Total amount for 1997:  Ptas 92 million.
8. Duration of the subsidy
Specific, when the requirements are fulfilled.
9. Statistical data permitting an assessment of the trade effects of the subsidy
No information is available to permit such an assessment, but the effect would appear to be
minimal in any case.
Mining (other than energy)
1. Title of the subsidy programme
Development of non-energy miningG/SCM/N/38/EEC/Add.13
Page 6
2. Period covered by the notification
1997
3. Purpose of the subsidy
Development of the non-energy mining sub-sect or, ore prospecting, mining and processing,
as well as R&D in these fields and, in some cases, environmental rehabilitation of former mining
sites.
4. Authority
Ministerial Order of 8 April 1997 (BOE, 24 April 1997)
5. Form of the subsidy
Non-repayable subsidy
6. To whom and how the subsidy is provided
Enterprises, associations of enterprises or institutions whose object is to promote and develop
the use of non-energy mineral raw materials are eligible for the subsidy.
Mining investment subsidies are confined to zones defined by the EU Commission as
Objective 1, since the assistance under this programme in this case is for regional development.
This aid is contingent on the applicants meeting their tax and social security obligations, and
the recipients must produce documents showing th at the subsidized activity has been carried out.
7. Amount of the subsidy
Ptas 1,009 millionThe maximum aid is 20 per cent of subsidizable investment.
8. Duration of the subsidy
The programme lasts for five years, until 31 December 2001.
9. Statistical data on the trade effects of the subsidy
The programme has no trade effects because of the small amount compared with the size of
the sector (annual turnover between Ptas 200,000 million and Ptas 300,000 million) and the high
number of recipients, since the programme covers 54 enterprises.G/SCM/N/38/EEC/Add.13
Page 7
Energy saving and efficiency plan
1. Title of the subsidy programme
Energy Saving and Efficiency Plan
2. Period covered by the notification
1997
3. Purpose of the subsidy
The Plan's objectives are to promote energy efficiency in industry, transport and public
buildings;  to develop the use of renewable energy sources, such as wind, solar (thermal and
photovoltaic energy), use of the biomass and waste (urban, industrial, forest and agricultural) and
small-scale hydraulic power (up to 10 MVA).
This is done in accordance with the objectives of Law 82/80 on energy conservation and of
the National Energy Plan, which defines the energy objectives for the decade 1991-2000.
4. Authority
Law 82/80 on energy conservation, Ministerial Or der of 6 February 1997, which establishes
the regulatory bases for subsidies under this programme for the period 1997-1999, and sets the
subsidies for 1997.
5. Form of the subsidy
Non-repayable subsidy
6. To whom and how the subsidy is provided
The following are eligible for such subsidies:
- Public or private enterprises;
- groups of such enterprises;- condominium owners' associations;- non-profit making institutions;- local corporations;
- natural persons engaging in activities covered by the Plan.
- neighbourhood associations and groups of such associations which submit integrated
programmes for the supply of services to a minimum of 150 housing units.
To receive this subsidy, the beneficiary must show that he has met his current tax and social
security obligations and that the subsidized activity has been carried out.G/SCM/N/38/EEC/Add.13
Page 8
7. Amount of the subsidy
For the 1997 financial year, subsidies under this programme amounted to Ptas 3,655 million.
8. Duration of the subsidy
This programme covers the period 1997-1999.
9. Statistical data on the trade effects of the subsidy
Since the subsidy is for all energy users, this question does not apply.
Aid to shipbuilding
- Shipbuilding Subsidies
1. Title of the subsidy programme
Shipbuilding subsidies
2. Period covered by the notification
1997
3. Purpose of the subsidy
The fundamental aim of Community and national policy is to ensure that the shipbuilding
sector remains competitive on the world market.
Since third countries continue to apply aid and/or measures that distort free competition in the
shipbuilding sector, in order to compete on the in ternational market Community shipyards must have
access to operational aid (limited by a common ceiling:  9 per cent or 4.5 per cent, depending onwhether or not the value of the ship to be built exceeds ECU 10 million) and restructuring aid (for
investments which do not imply an increase in capacity, total or partial closure of facilities and
research and development).
4. Authority
Royal Decree 442/1994, of 11 March, on shipbu ilding subsidies and financing, amended by
Royal Decrees 1395/1995 and 1562/1997.
5. Form of the subsidy
Non-repayable subsidy
6. To whom and how the subsidy is provided
The subsidy is paid to shipyards building metal-hull vessels of over 100 gross registered
tonnes with the exception of fishing vessels since 19 October 1997.G/SCM/N/38/EEC/Add.13
Page 9
The subsidy is provided once the relevant construction or conversion contract has come into
effect.  Payments are made as the ship is built or converted, subject to provision being made in the
annual budget, which means an average delay in paym ents of approximately six months to one year.
7. Amount of the subsidy
Total subsidy granted in 1997: Ptas 27,048 million
Number of subsidies granted in 1997: 59
Average subsidy per unit: Ptas 466 million
Of the Ptas 27,048 million, Ptas 13,365 million are for operating aid and Ptas 13,683 for
restructuring aid, as defined in Section 3 above.
8. Duration of the subsidy
The period of application of the programme is the same as that of the Seventh Directive,
which, in principle, extends up until the entry into force of the OECD Agreement and not later than31 December 1998.
9. Statistical data on the trade effects of the subsidy
The subsidies are granted under the Seventh Directive on aid to shipbuilding applicable in all
countries of the European Union.  Nevertheless, in 1997 shipbuilding in the European Union
represented 14.4 per cent of the global total, whereas in 1996 it had amounted to 19.4 per cent, while
at the same time the shares of Japan and Korea rose from 36 per cent and 21.4 per cent respectively in
1996 to 39.1 per cent and 27.5 per cent in 1997.  Consequently, these subsidies have not increased the
European Union's share of the global market.
Interest Subsidy for Shipbuilding Loans
1. Title of the subsidy programme
Interest Subsidy for Shipbuilding Loans
2. Period covered by the notification
1997
3. Purpose of the subsidy
The same objectives as those described in section 3 above.
4. Authority
Royal Decree 442/1994, of 11 March, on shipbu ilding subsidies and financing, amended by
Royal Decrees 1395/1995 and 1562/1997.
5. Form of the subsidy
Interest subsidyG/SCM/N/38/EEC/Add.13
Page 10
6. To whom and how the subsidy is provided
Domestic shipbuilders or those domiciled in the European Economic Area and, since
19 October 1997, under certain conditions, shipbuilders domiciled outside the European Economic
Area are eligible for this subsidy.  It consists of payment of up to 3 percentage points of the interest onshipbuilding loans granted by domestic or foreign financial entities.
The subsidy is paid throughout the term of the loan (8.5 to 14 years) subject to provision
being made in the annual budget, which means that there is a three to nine months delay in payments.
7. Amount of the subsidy
Total subsidy granted in 1997: Ptas 62,721 million
Number of subsidies granted in 1997: 67
Average subsidy per unit: Ptas 873 million
Period for repayment of loans: 8.5 to 14 years
Average annual subsidy per unit (approx.): Ptas 78 million
8. Duration of the subsidy
The period of application of the programme is the same as that of the Seventh Directive,
which, in principle, extends up until the entry into force of the OECD Agreement and not later than31 December 1998.
9. Statistical data on the trade effects of the subsidy
The comments made in A.9 also apply to this  section as the subsidy under the interest rate
subsidy is deducted from the common maximum ceiling, 9 per cent to 4.5 per cent according to
whether the value of the vessel to be built exceeds ECU 10 million.
Support initiative for technology, quality and industrial safety (ATYCA)
1. Title of the subsidy programme
Support Initiative for Technology, Quality and Industrial Safety (ATYCA)
2. Period covered by the notification
1997
3. Purpose of the subsidy
The basic objective of the ATYCA initiative is to enhance the technological and innovative
capacity, as well as the safety and industrial quality, of Spanish enterprises in conformity with the
European Union's policy on aid for technological research and development, and the incorporation of
quality and safety in industrial processes.
The ATYCA initiative consists of two main lines of action:  the Industrial Technology
Development Programme (PFTI) and the Quality and Industrial Safety Programme (PCSI).G/SCM/N/38/EEC/Add.13
Page 11
4. Authority
Aid under the ATYCA initiative is granted under the Order by the Ministry of Industry and
Energy of 25 April 1997 approving the regulatory bases and the budget for the 1997/1999 triennium
under this initiative (BOE, 6 May 1997).
5. Form of the subsidy
Non-repayable subsidy
6. To whom and how the subsidy is provided
Public or private enterprises and bodies, groups of such enterprises and non-profit-making
institutions are eligible.
The annual amount of ATYCA aid is available to potential beneficiaries which apply for
subsidies in order to carry out projects in various technological areas.  The aid is granted subject to thestudy and assessment of the applications by a committee.  The amount of the subsidy in relation to the
costs of projects may not exceed the limits of State aid authorized under European Union directives.
The aid is contingent on compliance by applicants with their tax and social security
obligations and proof that the activity has actually been carried out.
7. Annual amount of the subsidy
In 1997, subsidies paid under the ATYCA initiative amounted to Ptas 21,551 million, of
which Ptas 16,305 million were under the Industrial Technology Development Programme.
8. Duration of the subsidy
The ATYCA initiative remains in force from 1997 to 1999 and the subsidies are granted
annually.
9. Statistical data on the trade effects of the subsidy
Because of the nature of this programme, which mainly concerns the development of
technology and industrial quality and is open to enterprises in all industrial sectors, including
building, the trade effects are minimal since the aid is distributed over virtually the whole of industry.
Additional note
The majority of the subsidies granted under the ATYCA initiative are used to support R&D
projects under the Industrial Technology Development Programme, therefore, the subsidies under this
Programme are non-actionable subsidies according to Article 8.2 of the SCM Agreement, notifiedpursuant to Article 25 as granted in 1997.G/SCM/N/38/EEC/Add.13
Page 12
R&D plan for the aeronautical sector
1. Title of the subsidy programme
R&D plan for the aeronautical sector
2. Period covered by the notification
1997
3. Purpose of the subsidy
Aeronautical basic research and development projects
4. Authority
Decision of the Government Commission for Economic Affairs and Cooperation Agreements
with enterprises.
5. Form of the subsidy
Repayable advances
6. To whom and how the subsidy is provided
Aircraft companies which have signed a Cooperation Agreement.  The repayable advances
are paid out annually.
7. Amount of the subsidy
Ptas 4,164 million
8. Duration of the subsidy
It is a five-year R&D plan and ends on 31 December 1998.
9. Statistical data on the trade effects of the subsidy
Since the Programme covers basic industrial research, which is far removed from the
marketing stage, it has no trade effects.
Additional note
The Plan is for basic research projects and is therefore regarded as a programme of "non-
actionable" aid within the meaning of Article 8.2(a) of the SCM Agreement.  It is notified under
Article 25, having been in force in 1996.G/SCM/N/38/EEC/Add.13
Page 13
Aid under technological programmes connected with the SEAT Modernization Plan
1. Title of the subsidy programme
Aid under technological programmes connected with the SEAT Modernization Plan
(1994-1997)
2. Period covered by the notification
1997
3. Purpose of the subsidy
The aid is intended for innovation, technological development and training projects in the
SEAT company, a subsidiary of the Volkswagen Group, under a plan that will mean a 29 per cent
reduction in SEAT's capacity and a 5 per cent capacity reduction of the VW Group, at the Community
level.
4. Authority
Commission Decision EC 96/257, of 31 Octobe r 1995, concerning aid granted by Spain to
SEAT, a member of the VW Group.
5. Form of the subsidy
Non-repayable subsidy
6. To whom and how the subsidy is provided
The subsidy is payable exclusively to the SEAT company, which must produce evidence to
the Spanish authorities that the innovation, technological development and training projects have been
implemented.
7. Amount of the subsidy
The amount in 1997 was Ptas 9,601 million.
8. Duration of the subsidy
The Modernization Plan covers the period 1994-1997 and subsidies may be granted in the
years 1995-1998.
9. Statistical data on the trade effects of the subsidy
The subsidy has no adverse affects on trade for SEAT's competitors since it fulfils the
requirements under the Agreement on Subsidies and Countervailing Measures for aid for this purpose
(R&D, Article 8.2(a));  furthermore, the Modernizat ion Plan for which the aid is intended involves
reduction of 29 per cent in production capacity and of 49 per cent in employment by the end of the
Plan, so that by the end of 1997 SEAT's technical capacity will not exceed 2,125 units per day,compared with 3,000 units per day at the end of 1993.G/SCM/N/38/EEC/Add.13
Page 14
3. Small and medium enterprises (SMEs)
Small and medium enterprises industrial development initiative
1. Title of the subsidy programme
Small and Medium Enterprises Industrial Development Initiative:  Aid and Promotion
2. Period covered by the notification
1997
3. Purpose of the subsidy
The SMEs Industrial Development Initiative incorporates a number of activities for small and
medium enterprises (SMEs) and includes the following subprogrammes:
3.1 Business cooperation
Purpose: The official aid is intended to finance some of the cost for national partners of
concluding cooperation agreements and the cost of cooperation awareness
and promotion plans.
The activities must not lead to restrictive business practices, must offer
guarantees of permanence and stability and must be directed at promoting
and supporting inter-business cooperation.
3.2 Promotion of information services
Purpose: The aid is granted to facilitate cooperation among information centres which,
using telematics, promote and reinforce the supply of sophisticated business
information services.
3.3 Industrial design
Purpose: The implementation of design projects by companies to be used to
incorporate, include or apply innovative and/or design technology in SMEs
so as to provide information on the product, marketing, corporate identity,
and to disseminate, promote and make businesses and consumers aware ofthe importance of design and innovation as tools for improving the
competitiveness of businesses.
3.4 Financing
Purpose: To facilitate access by small and medium enterprises to various sources of
financing, to assist investment, lower the cost, and improve the economic and
financial structure of such enterprises.
3.5 Networks of intermediate organizations supporting innovation
Purpose: Assistance to businesses for action plans or project start-up, principally those
intended to install mechanisms used for innovation management, utilizeG/SCM/N/38/EEC/Add.13
Page 15
technological resources or improve internal technology learning processes
within the business.
Spreading ideas, experience, practical improvements, results and techniques
involving innovation management, including joint training activities toreinforce the human resources of SMEs and/or intermediate organizations.
Study and introduce commercial and technological monitoring systems in
appropriate sectors, to improve the formulation of technological and trade
plans and strategies by the SMEs.
Support for studies on the incorporation of innovation in the strategies of
intermediate organizations and their integration into supranational
organizations.
4. Authority
Royal Decree 937/1997 of 20 June 1997 (BOE, 11 July 1997)
5. Form of the subsidy
Non-repayable subsidy
6. To whom and how the subsidy is provided
Small and medium enterprises and intermediate organizations are eligible for this aid.
For the purposes of this Royal Decree, a small or medium industrial enterprise (SME) is
deemed to be an economic unit with natural or legal personality which, at the time of the application,
meets the following requirements:
(a) Employs not more than 250 workers;(b) either:  an annual turnover of not more than ECU 40 million, or an overall balance of
not more than ECU 27 million;
(c) 25 per cent or more of their shares are not held by companies that do not meet the
aforesaid requirements, unless they are State investment enterprises, risk capital
enterprises or institutional investors, provided they do not exercise control.
For the purposes of this Royal Decree, an intermediate organization is deemed to be:- Any public, semi-public or private organization which, regardless of the way it is
established or whether it has legal personality, on a non-profit making and habitualbasis, provides support services for small and medium enterprises by carrying out
joint assistance programmes or supplying services to promote and help improve the
management of SMEs.
- Organizations which, for profit-making purposes and in which the majority of the
capital is State owned, pursue the objectives set out in the previous paragraph.
- Financial bodies, excluding credit bodies, engaged in activities covered by the
financial support programmes in the Royal Decree, as well as bodies whose purposeG/SCM/N/38/EEC/Add.13
Page 16
is to grant loans to SMEs and/or contribute towards the risk capital/capital
investment, either from their own resources or from resources managed by them.
Before receiving this subsidy, beneficiaries must  show that they have complied with their tax
and social security obligations.
They must also show that the subsidized activity has actually been carried out.
7. Amount of the subsidy
Ptas 10,161 million, allocated according to the territorial scope laid down in Article 153 of the
General Budget Law, as implemented by Law 13/ 1996 of 30 December on administrative tax and
social order measures.  There are commitments for a total of Ptas 7,091 million of the amount
allocated.
Breakdown of commitments by subprogramme:
Business cooperation 13.10%
Business information 17.23%
Design 31.34%
Innovation networks 11.47%
Financing 26.85%
8. Duration of the subsidy
The Programme is for three years until 31 December 1999.
9. Statistical data permitting an assessment of the trade effects of the subsidy
Given the nature of this aid programme, there is no effect on trade.
ARTE/SME programme
1.  Title of the subsidy programme
ARTE/SME Programme under the operational programme of the Community SME initiative.
2. Period covered by the notification
1997
3. Purpose of the subsidy
Aid for the financing of advance telecommunication services projects of common interest to
small and medium enterprises.
4.  Authority
Ministerial Order of 31 July 1995 (BOE, 29 August 1995).G/SCM/N/38/EEC/Add.13
Page 17
5.  Form of the subsidy
Non-repayable subsidy
6. To whom the subsidy is provided
Only legally established non-profit-making public or private entities are eligible for the
subsidy.
Zones classified as objective 1 under the European Regional Development Fund (ERDF) are
priority zones for action.
Action may also be undertaken in objective 2 and 5-B zones, although to a lesser degree.
Some residual allocations go to non ERDF zones.
The aid is contingent on the applicants meeting their tax and social security obligations and
the recipients must produce documents showing that the subsidized activity has been carried out andthe relevant costs have been paid.
7. Amount of the subsidy
Subsidies approved in 1997:  Ptas 711 millionAround 70 per cent of this amount was used to acquire computer equipment (hardware and
software), to develop software as telecommunications terminals (modems, PCs) were purchased for
use by SMEs.  The remainder was used for communications costs and costs related to feasibility
studies,  promoting the use of advanced telecommunications services and providing technicalassistance.
8. Duration of the subsidy
The ARTE/SME programme is for five years and will remain in effect until June 1999 for the
submission of new projects.  Subsidized projects may be terminated after this date.
9. Statistical data permitting an assessment of the trade effects of the subsidy
The aid regime has no trade effects due to its small scale in comparison with the scale of trade
and the large number of SMEs that have indirectly benefited from this aid, estimated at 3,600 in
various economic sectors as the programme is multisectoral.
4. Environmental subsidies
Protection and enhancement of the environment
1. Title of the subsidy programme
443 D "Protection and Enhancement of the Environment"
2. Period covered by the notification
1997 … 370 millionG/SCM/N/38/EEC/Add.13
Page 18
3. Purpose of the subsidy
Management and reutilization of used oils.
4. Authority
Ministerial Order of 30 October 1996 (BOE , 8 November 1996) EEC Directive 75/439
5. Form of the subsidy
Non-repayable subsidy
6. To whom and how the subsidy is provided
Natural or legal persons who have carried out or intend to carry out activities for the
management of used oils in terms of the Ministerial Order of 30 October 1996 during the 1996financial year.
7.  Amount of the subsidy
Ptas 15/kg. of recycled oil.Ptas 5/kg. of oil treated in recycling or elimination centres.  These amounts may be increased
by 10 per cent if inter-island transport is included.
8. Duration of the subsidy
The aforementioned activities carried out during 1996 are eligible for the subsidy.
9.  Statistical data permitting an assessment of the trade effects of the subsidy
Pursuant to EEC Directive 75/439, subsidies may be granted for these activities in order to
compensate the recipients for the services supplied, provided that the aid does not exceed the annualcosts not covered by the enterprises, taking into account a reasonable profit.  Consequently, these
subsidies have little or no trade effects.
5. Regional subsidies
Regional economic incentives scheme
1. Title of the subsidy programme
Regional Economic Incentives Scheme
2. Period covered by the notification
1997G/SCM/N/38/EEC/Add.13
Page 19
3. Policy objective and/or purpose of the programme
The purpose  is to promote the economic development of the most disadvantaged areas.  The
objective of regional incentives is to foster entrepreneurship and encourage firms to locate in
previously determined areas, so as to reduce economic disparities on Spanish territory, secure a moreequitable spread of economic activities and strengthen the regions' potential for internally generated
development.
4. Authority
The mandate under the Spanish Constitution, which sets out in Article 40.1 an obligation on
the authorities to foster favourable conditions for a more equitable distribution of regional income.Similarly, Article 138 lays down that the State shall establish a suitable and fair economic balance
among the various parts of Spanish territory.
The legislative basis is:
- Law 50/1985 of 27 December, on regional economic incentives to remedy inter-
regional economic imbalances.
- Regulation approved by Royal Decree 1535/1987 of 11 December and amended by
Royal Decree 897/1991 of 14 July, Roya l Decree 302/1993 of 26 February, Royal
Decree 2315/1993 of 29 December and Royal Decree 78/1997 of 24 January.  It was
approved by the EU Commission's Decision of 1 June 1987.
- 13 Royal Decrees delimiting the Economic Promotion Areas, some amended.
5. Form of the subsidy
Non-repayable subsidies, granted for productive investments and calculated on the investment
approved by the Administration.
6. To whom and how the subsidy is provided
Once it is approved, the subsidy is notified individually to the persons concerned in an
Individual Resolution establishing the basic data for the project, including the name of the recipient
enterprise that has applied for it.
The aid is paid once the relevant Autonomous Community has issued a report substantiating
full execution of the project and on fulfilment, within the specified periods, of the conditions required
in the relevant Individual Resolution, accepted by the beneficiary beforehand.  Enterprises may apply
to receive the subsidy in instalments provided they produce evidence that the part of the investment
for each instalment has been made together with adequate guarantees against failure to complete.
7. Amount of the subsidy
General State Budget for 1997:  Ptas 14,413 million.
8. Duration of the subsidy
The scheme will continue as long as the reason for introducing it, namely the imbalance in
regional development, persists.G/SCM/N/38/EEC/Add.13
Page 20
9. Statistical data permitting an assessment of the trade effects of the subsidy
As to the statistical data permitting an assessm ent of the programme's trade effects, it should
be noted that, since the subsidies take the form of capital for productive investment in disadvantaged
regions, the principle of free competition is not deemed to be jeopardized.G/SCM/N/38/EEC/Add.13
Page 21
Autonomous Communities (Regional Aid)
CONTENTS
Page
ANDALUS IA ...................................................................................................................... ..... 24
Programme of aid for the technological and corporate modernization of the
industrial sector............................................................................................................ 24
Programme of aid for the promotion and development of the industrial sector .......... 25
Aid to investment in infrastr ucture and ener gy equipment.......................................... 26
Aid for the promotion of cooperative act ivitie s........................................................... 28
Aid from the Andalusian Promotion Institute (IFA).................................................... 29
BALEARIC IS LANDS ............................................................................................................. 31
Aid to the commercial, industr ial and servi ce sectors ................................................. 31
The Foner II operational prog ramme in rura l areas ..................................................... 32
CANARY IS LANDS ................................................................................................................ 3 5
Aid for the modernization or restructuring of the fishing fleet and provision
of communication faciliti es.......................................................................................... 35
Subsidies to investment in proj ects to develop cr aft indus try...................................... 36
Subsidies to business co operation projects .................................................................. 37
Subsidies for the economic promotion of craftmanship in the Canary Islands............ 38Subsidies for industrial development and technological modernization projects........ 39
Subsidies for projects to save and diversify energy and to utilize sources
of renewabl e energy..................................................................................................... 40
Subsidies to the Pr ocasol project ................................................................................. 41
CANTAB RIA ...................................................................................................................... ..... 42
Reindustrialization and Orga nization Aid Fund (FARO)............................................ 42
Incentives for the Renewal of I ndustry and Services (IRIS)........................................ 43
Subsidies for the craft se ctor in Cantabria ................................................................... 44
Support to the mining industry and utilization of mineral and/or thermal waters ....... 45
CASTILE-LA MANCHA ......................................................................................................... 47
Decree on competitiveness and busi ness investment  incentives.................................. 47
Aid for economic diversification in regions with textiles-clothing factories
under the Community RE TEX initiative ..................................................................... 48
CASTILE- LEÓN ................................................................................................................... ... 49
Subsidies for projects to save, replace and diversify energy, rational
uses of energy and renewable energy .......................................................................... 49
Aid for business investment , territorial incentiv es....................................................... 49
Subsidies through advance or bridging loans for regional and territorial
incentives ..................................................................................................................... 50
Subsidies for invest ment by SMEs .............................................................................. 51G/SCM/N/38/EEC/Add.13
Page 22
Page
Business excellence programme:  business analysis, quality and competitiveness ..... 52
Subsidies to craftsmen and wo rkshops in Ca stile-León............................................... 53
Financial aid to subsidize interest ra tes for credit operations by SMEs ...................... 55
Support for technological devel opment projects in SMEs........................................... 55
Support for technological suppo rt services to SMEs................................................... 56
CATAL ONIA ...................................................................................................................... ..... 59
Aid under technological programmes connected with the SEAT Modernization
Plan ........................................................................................................................... ... 59
Aid to enterprises for technologi cally innovative R&D projects................................. 60
CIRIT-CIDEM aid to R&D projects involving university graduates .......................... 60
Quality promotion programme .................................................................................... 61
EXTREM ADURA .................................................................................................................... 63
Subsidies to ag ro-industry ........................................................................................... 63
Incentives to invest ment by SMEs............................................................................... 64
Subsidized interest on loans or  leasing operations for SMEs ...................................... 65
GALICIA ........................................................................................................................ .......... 67
Non-repayable subsidies to c ooperation among enterprises ........................................ 67
MADRID ......................................................................................................................... ......... 69
Innovation and employm ent master  plan..................................................................... 69
Diversification of activ ities and job creation ............................................................... 70
Aid to companies for tec hnological R&D projects...................................................... 72
MURCIA......................................................................................................................... .......... 75
Aid to SME financing .................................................................................................. 75
NAVA RRE ........................................................................................................................ ....... 76
Aid to anti-pollu tion investment .................................................................................. 76
Aid to R&D.................................................................................................................. 77
Reorganization and revival of  enterprises in cris is ...................................................... 78
Investment and employment aid.  Interest  rate subsidies fo r loan operations ............. 79
BASQUE C OUNTRY .............................................................................................................. 80
Access to ownership of fishin g boats........................................................................... 80
Programme of aid to investment (AFI)........................................................................ 81
Programme of support to R&D activ ities .................................................................... 82
Ekimen programme...................................................................................................... 83G/SCM/N/38/EEC/Add.13
Page 23
Page
RIOJA .......................................................................................................................... ........... 85
Promotion of investment and modernization by  SMEs in areas of industrial decline . 85
Promotion of investment and moderniz ation by SMEs in rural areas ........................ 86
VALENCIA ....................................................................................................................... ....... 87
Aid to Ford España, S.A. ............................................................................................. 87G/SCM/N/38/EEC/Add.13
Page 24
AUTONOMOUS COMMUNITY:  ANDALUSIA
1. Programme of Aid for the Technological and Corporate Modernization of the Industrial
Sector
1. Title
Programme of Aid for the Technological and Corporate Modernization of the Industrial
Sector
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
(a) To build, modernize and improve the industrial, technological and energy
infrastructure of the Andalusian industrial sector;  and
(b) to install and strengthen safety conditions in and improve the quality of equipment,
processes and industrial plant in the Autonomous Community of Andalusia.
4. Background and authority for the subsidy
Order of 12 July 1995 regulating an aid programme for the technological and corporate
modernization of the industrial sector (BOJA No. 101, of 18 July 1995).
5. Form of the subsidy
Non-repayable subsidy
6. Beneficiaries
Preference will be given as beneficiaries to small- and medium-sized enterprises (SMEs) and
to non-profit-making associations and institutions situated in Andalusia and connected with industry,
which make investments designed to improve competitiveness and productivity in the various areas of
industrial activity.
Investments in the following areas are regarded as eligible for the subsidy:
- Renewing or modernizing production machinery and equipment;
- encouraging innovation and technological development;
- improving the industrial quality system;- infrastructure and equipment for and promotion of the use by SMEs of advanced
telecommunications services;
- equipment and energy efficiency;
- promoting industrial safety;  and
- business investigation and analysis.
The minimum investment in fixed assets eligible for the subsidy will be Ptas 5 million, the
maximum amount of aid being 30 per cent of the inve stment, with a ceiling of Ptas 100 million.  InG/SCM/N/38/EEC/Add.13
Page 25
the case of current expenditure, the subsidy may cover up to 70 per cent of the cost generated, with a
ceiling of Ptas 10 million.
The composition of the Appraisal Committee and the criteria to be used are published in the
same Order.
7. Subsidy per unit
The total amount budgeted for 1997 was Ptas 100 million.
8. Duration of the subsidy
1995-1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
No statistical data are available which would permit an assessment to be made of the trade
effects of the subsidy.
2. Programme of Aid for the Promotion and Development of the Industrial Sector
1. Title
Programme of Aid for the Promotion and Development of the Industrial Sector
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
(a) To invest in production processes for the conversion of primary products into
products having a greater added value;
(b) to invest in the change-over to or widening of industrial products regarded as
emerging, that will gradually replace those already mature ones whose marketing has
been rendered difficult by competition from developing countries with cheaper labour
costs;  and
(c) to invest in the adaptation, generation and acquisition of the new technologies needed
to achieve the above objectives.
4. Background and authority for the subsidy
Order of 4 December 1995, regulating a programme of aid for the promotion and
development of the industrial sector  (BOJA No. 158, of 14 December 1995).
State Aid No. 153/97.  Spain (Andalusia).
5. Form of the subsidy
Non-repayable subsidyG/SCM/N/38/EEC/Add.13
Page 26
6. Beneficiaries
The subsidies will be available to those industrial enterprises that were already in existence
and located in Andalusia when the Order came into force and which are implementing projects oractions connected with the activities regarded as eligible for the subsidy (investment in productive
assets and those activities associated with the planning and investment phase, the production phase or
research and development).
The amounts will vary according to the scales and criteria established in the Order but may in
no case exceed the following percentages:
- Investment in productive assets:  up to 30 per cent of the investment in fixed assets
which is regarded as eligible for the subsidy;
- activities associated with the planning and investment phase:  up to 50 per cent of the
external collaboration expenses associated with such activities and regarded aseligible for the subsidy;
- activities associated with the production phase:  up to 30 per cent of the investment in
fixed assets which is regarded as eligible for the subsidy, and up to 50 per cent of the
external collaboration expenses derived from the implementation of activitiesincluded in this group which are regarded as eligible for the subsidy;  and
- activities associated with research and development:  up to 30 per cent of the
investment in fixed assets (instruments and equipment) directly ascribable to the
R&D project.  For the subsidization of the costs of research and developmentactivities, the maximum aid limits are:  up to 65 per cent for basic research projects
and up to 35 per cent for applied research projects.
7. Annual amount budgeted for the subsidy
For 1997, the total amount budgeted was Ptas 2.264 million, for a total of 16 projects
submitted during the year.
8. Duration of the subsidy
1995-1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
No statistical data are available which would permit an assessment to be made of the trade
effects of the subsidy.
3. Aid to Investment in Energy Infrastructure and Equipment
1. Title
Aid to Investment in Energy Infrastructure and EquipmentG/SCM/N/38/EEC/Add.13
Page 27
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To promote the rational use of energy and the utilization of renewable forms of energy, to
improve energy efficiency and to extend the electricity supply infrastructure in rural areas.
4. Background and authority for the subsidy
The Energy Plan for Andalusia (PLEAN 1995-2000), Operative Programme for Andalusia
1995-2000 of the MAC.
Order of 16 May 1997, regulating the granting of subsidies to investment in energy
infrastructure and equipment (BOJA No. 66, of 10 June 1997).
5. Form of the subsidy
Non-repayable subsidy
6. Beneficiaries
In the case of aid to utilize forms of renewable energy, private companies;In the case of aid to improve energy efficiency, preference is given to private companies in
the industrial sector;  and
In the case of aid to rural electrification, exclusively small- and medium-sized enterprises that
distribute electric power.
The subsidy is given to the owner of the installation once the investment in the installation
has been carried out.
The subsidies rise to a maximum of 30 per cent of the investment in fixed assets, with a
ceiling per project of Ptas 200 million.
7. Annual amount budgeted for the subsidy
There is no subsidy per unit, in view of the fact that the aid is focused not on promoting
production processes but on supporting the installation of energy infrastructure and equipment.
The amount budgeted for 1997 was Ptas 640 million, but no expenditure was committed in
that financial year since the applications submitted under the Order of 6 May 1997 were assessed inthe first months of the 1998 financial year.
8. Duration of the subsidy
The support line covers actions eligible for the subsidy during the period 1997-1999.G/SCM/N/38/EEC/Add.13
Page 28
9. Statistical data permitting an assessment of the trade effects of the subsidy
No statistical data are available which would permit an assessment to be made of the trade
effects of the subsidy.
4. Aid for the Promotion of Cooperative Activities
1. Title
Aid for the Promotion of Cooperative Activities
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Promotion and development of entrepreneurial activity and collective self-employment within
the framework of the social economy and the promotion of the cooperative movement in Andalusia.
4. Background and authority for the subsidy
Decree No. 79/1995, of 21 March 1995, conc erning measures for the promotion of
cooperative activities (BOJA No. 70, of 13 May 1995).
Order of 5 May 1995, following up Decree No. 79 /1995 of 21 March concerning measures for
the promotion of cooperative activities (BOJA No. 71, of 16 May 1995).
5. Form of the subsidy
Non-repayable subsidies.
Interest-rate subsidies.
Financial guarantees.Repayable subsidies.
6. Beneficiaries
Subsidies and aids for the promotion of cooperative activities can be provided to the
following types of entities:
- Andalusian cooperative societies;
- labour corporations;
- federations and/or associations of Andalusian cooperatives and labour corporations;- local corporations;  and
- natural persons engaged in various activities for the promotion of the cooperative
movement.
7. Total amount or the annual amount budgeted for the subsidy
Amount budgeted for the 1997 financial year:  Ptas 3,592,366,473 subdivided into the
following activities corresponding to  the two groups of programmes into which this line of aid is
divided:G/SCM/N/38/EEC/Add.13
Page 29
1. Business promotion programmes
  Ptas
- Investment subsidies: 1,750,792,473
- Repayable subsidies: 64,150,000
- Interest subsidies: 164,800,000
- Financial guarantees: 241,751,000
- Subsistence income: 202,100,000
2. Instruments for the development of the cooperative movement and the social
economy
  Ptas
- Business schools: 422,500,000
- Local social economy projects: 74,265,000
- Cooperatives with corporate practices: -
- Young graduates: -
- Community action: 12,000,000
- Training: 562,258,000
- Promotion of associations: 30,000,000
8. Duration of the subsidy
1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
No statistical data are available which would permit an assessment to be made of the trade
effects of the subsidy.
5. Programme of Aid from the Andalusian Promotion Institute (IFA)
1. Title
Programme of Aid from the Andalusian Promotion Institute (IFA)
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Regional:  the business support instruments of the Andalusian Promotion Institute (IFA) have
proved essential for making progress towards the economic and social development of the
Autonomous Community of Andalusia.  The weak business structure, consisting essentially of smalland medium-sized enterprises which have difficulty in obtaining access to financing, has necessitated
support from the Public Administration which, in some cases, is assisting the start-up and, in others,
the consolidation of Andalusian entrepreneurial activities.G/SCM/N/38/EEC/Add.13
Page 30
On the other hand, in this region with a high rate of unemployment and an abnormally low
standard of living, there is a need for specific acti on in support of the enterprises, since this will help
to guarantee an improvement in the Andalusian social situation.
4. Background and authority for the subsidy
Act No. 3/1987 of 13 April 1987 establishing the Andalusian Promotion Institute.
5. Form of the subsidy
Interest subsidies
LoansEquity participation
Guarantees
Subsidies
6. Beneficiaries
The aid is intended for entrepreneurial investment projects or operations for the refinancing of
liabilities, especially current liabilities, linked to a recent investment, thus supporting enterprises that
invest in Andalusia.  In no circumstances are export operations supported.  Determination of the aid
results in a fixed sum.
7. Total amount or the annual amount budgeted for that subsidy
  Ptas
- Interest subsidies: 4,670.13 million
- Loans: 904.48 million
- Equity participation: 211.00 million
- Guarantees: 86.00 million
- Subsidies: 10,385.71 million
- TOTAL: 16,257.32 million
8. Duration of the subsidy
The aid programme has a multi-year duration up to 31 December 1999, although there are
annual budgets.
9. Statistical data permitting assessment of the trade effects of the subsidy
No statistical data are available which would permit an assessment to be made of the trade
effects of the subsidy.G/SCM/N/38/EEC/Add.13
Page 31
AUTONOMOUS COMMUNITY:  BALEARIC ISLANDS
1. Normative  framework for aid to the commercial, industrial and service sectors
1. Title of subsidy programme
Decree No. 29/1997, of 18 February 1997, establ ishing the normative framework for aid to
the commercial, industrial and service sectors in the Balearic Islands.
2. Period covered by the notification
From 1 January 1997 to 31 December 1997.
3. Purpose of the subsidy
(a) De minimis  aid operations:
- Investments in fixed assets and financing of circulating capital for industrial
enterprises;
- investments in fixed assets and financing of circulating capital for commercial
and services operations;
- promotion of craft enterprises;
- promotion of quality and industrial design;
- commercial promotion of industrial enterprises;
- creation of industrial enterprises;
- transfer, installation or extension of enterprises in industrial estates.
(b) Aid covered by the Commission's SME Directives:
- Renovation and modernization of the productive structure;
- Objective 2 Zone;
(c) Aid covered by other Commission Directives:
- Industrial technological development.
4. Authority for the subsidy
Decree No. 29/1997, published in the Official Gazette of the Autonomous Community of the
Balearic Islands (BOCAIB) No. 29 of 8 March 1997.
5. Form of the subsidy
Non-repayable subsidies and interest subsidies.G/SCM/N/38/EEC/Add.13
Page 32
6. Beneficiaries
All small- and medium-sized enterprises located in the Balearic Islands are beneficiaries if
they are connected with trade, industry and services and meet the following conditions:
(a) They have an annual turnover not exceeding 40 million ECUs;
(b) they have a workforce of less than 250 employees;  and(c) they have no equity participation exceeding 25 per cent held by one or more
enterprises which do not meet the two previous conditions.
Exceptionally, such aid may be extended to enterprises which, without meeting the above
requirements submit projects which are accepted by the Autonomous Government.
7. Amount of the subsidy
The subsidy budgeted for by the Autonomous Community of the Balearic Islands amounts to
Ptas 811,761,455.
In this aid scheme, which is co-financed by the European Union, individual aid operations
must be in keeping with one of the following possibilities:
(a) Aid of up to 80 per cent of the cost, when the de minimis clause is invoked, and not
exceeding 100,000 ECU, in three years per beneficiary;
(b) aid of up to 15 per cent of the cost, with a ceiling of 200,000 ECU;(c) in accordance with the European Union Directives, aid may not amount to more than
50 per cent and 200,000 ECU per beneficiary in cases of R & D;  and
(d) in any case, interest-rate subsidies on a loan must always come within the de minimis
clause, as set out in paragraph (a) of this article.
8. Duration of the subsidy
Indefinite
9. Statistical data permitting an assessment of the trade effects of the subsidy
No trade effects owing to the insignificant amounts of aid involved and the large number of
small enterprises to which it was directed.
2. The Foner II Operational Programme in Rural Areas  of Objective 5b
1. Title of subsidy programme
Decree No. 3/1995 regulating the granting of aid for the implementation of the FONER II
Operational Programme in rural areas  of Objective 5B of the Balearic Islands.G/SCM/N/38/EEC/Add.13
Page 33
2. Period covered by the notification
From 1 January 1997 to 31 December 1997.
3. Purpose of the subsidy
Aid for productive activities and investment;aid for non-productive activities and investment;  andaid for professional training and job creation.
4. Authority for the programme
Decree No. 3/1995, published in BOCAIB No. 13 of 31 January 1995.
5. Form of the subsidy
Percentage of the eligible investment.
6. Beneficiaries
Provided to production and marketing enterprises which have justified their investment, in the
form of a percentage thereof.
This concept includes individual entrepreneurs,  trading companies, agri-business companies,
agricultural cooperatives and any other enterprise which has a legal form provided for in current
legislation as well as local public bodies.  All of these entities must fulfil each of the followingrequirements:
(a) Undertake an investment project within the rural areas of Objective 5B of the
Balearic Islands in order to carry out an activity eligible for aid;
(b) have a maximum workforce of 50 employees, a turnover of less than Ptas 800 million
and a general balance not exceeding Ptas 320 million;  and
(c) be up to date with the payment of their tax and social security contributions or else
have been granted a postponement or moratorium.
7. Amount of the subsidy
Subsidy from the budget of the Autonomous Community of the Balearic Islands amounting to
Ptas 110,580,702.
This aid scheme, which is co-financed by the European Union, can cover a maximum of
30 per cent of the amount of the approved investment.  There are also the following ceilings per
beneficiary:
(a) Ptas 7,500,000 over a three-year period for each of the following types of cost:
- investment cost for any purpose except R & D;  and
- other costs.G/SCM/N/38/EEC/Add.13
Page 34
(b) Ptas 15,000,000 over a three-year period;  and
(c) Ptas 25,000,000 during the entire period of application of the Operational
Programme, while in any case respecting the above limits.
8. Duration of the subsidy
From 1 January 1995 to 31 December 1999.
9. Statistical data permitting an assessment of the trade effects of the subsidy
The programme has no trade effects.G/SCM/N/38/EEC/Add.13
Page 35
AUTONOMOUS COMMUNITY:  CANARY ISLANDS
1. Provision of Radio Communication Facilities for Boats Engaged in Inshore Fishing
1. Title of subsidy programme
Subsidies not Co-Financed by the European Un ion for the Modernization or Restructuring of
the Fishing Fleet of the Canary Islands and Provision of Radio Communication Facilities for Boats
Engaged in Inshore Fishing.
2. Period covered by the notification.
1997
3. Policy objective and/or purpose of the subsidy
The installation of equipment and facilities together with certain kinds of work and
modifications on boats engaged in inshore fishing.
4. Authority for the subsidy
Basic regulation:  Decree No. 114/95 of 2 April 1995 (BOC No. 64 of 24 May 1996).
Community regulation:  SG (95) 6795, Aid No. 246/95 on modernization and restructuring of
the fishing fleet, of 30 May 1995.
Official Notice for 1997:  Order of 14 April 1997 (Official Gazette of the Canaries (BOC)
No. 56 of 2 May 1997).
5. Form of the subsidy
Non-repayable subsidy
6. Beneficiaries:  to whom and how the subsidy is provided
Any boat which meets the requirements within the limits of the Autonomous Community of
the Canary Islands.
The granting of such aid is contingent on the applicants meeting their tax and social security
obligations and the recipients must provide evidence that the subsidized activity has been carried out.
7. Subsidy per unit or total amount of the subsidy
Ptas 30 million
8. Duration of the subsidy
IndefiniteG/SCM/N/38/EEC/Add.13
Page 36
9. Statistical data permitting an assessment of the trade effects of the subsidy
The programme has no trade effects.
2. Subsidies to Investment in Projects to Develop Craft Industry
1. Title of subsidy programme
Subsidies to Investment in Projects to Develop Craft Industry
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To encourage investment in projects to develop craft industry in the Canary Islands.
4. Authority for the subsidy
The subsidy has been approved by the European Commission under a de minimis  rule.
Notice for 1997:  Order of 31 March 1997 (BOC No. 50 of 18 April 1997).
5. Form of the subsidy
Non-repayable subsidy
6. Beneficiaries:  to whom and how the subsidy is provided
Natural persons who, being craftsmen resident in the Canary Islands, make investments to
establish new craft workshops or to extend, improve and modernize existing craft workshops within
the territorial limits of the Autonomous Community of the Canary Islands.
This aid is contingent on the applicants meeting their tax and social security obligations, and
the recipients must produce documents showing th at the subsidized activity has been carried out.
7. Subsidy per unit or total amount of the subsidy
Ptas 50 million.Maximum extent of aid:  90 per cent for investment projects of less than Ptas 700,000,
75 per cent for investment projects greater than Ptas 700,000.
8. Duration of the subsidy
Indefinite
9. Statistical data permitting an assessment of the trade effects of the subsidy
The programme has no trade effects.G/SCM/N/38/EEC/Add.13
Page 37
3. Subsidies to Business Cooperation Projects
1. Title of subsidy programme
Subsidies to Business Cooperation Projects
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To promote business cooperation in the development of ventures of a productive commercial,
technological or joint capital investment nature  calculated to increase their competitiveness.
4. Authority for the subsidy
Basic regulation:  Decree No. 231/93 of 29 July 1993.Community regulation:  State Aid No. 749/93, SG (94)D/2294, of 17 February 1993.Notice for 1997:  Order of 19 May 1997 (BOC No. 70 of 30 May 1997)
4. Form of the subsidy
Non-repayable subsidy
5. Beneficiaries:  to whom and how the subsidy is provided
Small- and medium-sized industrial enterprises, or industrial support services enterprises,
which propose to carry out cooperation activities at the national or international level, which operate
within the territorial limits of the Autonomous Community of the Canary Islands.
This aid is contingent on the applicants meeting their tax and social security obligations and
the recipients must produce documents showing th at the subsidized activity has been carried out.
6. Subsidy per unit or total amount of the subsidy
Ptas 20 millionMaximum extent of aid:  50 per cent
7. Duration of the subsidy
Indefinite
8. Statistical data permitting an assessment of the trade effects of the subsidy
The programme has no trade effects.G/SCM/N/38/EEC/Add.13
Page 38
4. Subsidies for the Economic Promotion of Craftsmanship in the Canary Islands
1. Title of subsidy programme
Subsidies for the Economic Promotion of Craftsmanship in the Canary Islands
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To stimulate and consolidate craftsmanship, orga nize vocational training courses, hold fairs
and other commercial promotion activities, support initiatives to form associations and, in general,
carry out activities to promote craftsmanship.
4. Authority for the subsidy
The subsidy has been approved by the European Commission under the de minimis  clause.
Notice for 1997:  Order of 12 May 1997 (BOC No. 65 of 23 May 1997).
5. Form of the subsidy
Non-repayable subsidy
6. Beneficiaries:  to whom and how the subsidy is provided
Natural persons who are craftsmen resident in the Canary Islands, professional associations of
craftsmen active in the Autonomous Community of the Canary Islands and institutions, both public
and private, that develop projects in support of  craftsmanship within the Autonomous Community of
the Canary Islands.
This aid is contingent on the applicants meeting their tax and social security obligations, and
the recipients must produce documents showing th at the subsidized activity has been carried out.
7. Subsidy per unit or total amount of the subsidy
Ptas 35 millionMaximum extent of aid:  50 per cent of the investment
8. Duration of the subsidy
Indefinite
9. Statistical data permitting an assessment of the trade effects of the subsidy
The programme has no trade effects.G/SCM/N/38/EEC/Add.13
Page 39
5. Subsidies for Industrial Development and Technological Modernization Projects
1. Title of subsidy programme
Subsidies for Industrial Development and Technological Modernization Projects, Establishing
to that End the Bases for their Period of Application
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To encourage investment by SMEs in the Canary Islands
4. Authority for the subsidy
Basic regulation:  Regional Incentives Prog ramme Act No. 50/85 REGIS II.  Action 2.IB.1
Community regulation:  State Aid No. 199/96 of 31 July 1996 SG(96) d7014
Notice for 1997:  Order of 1 July 1997 (BOC No. 87 of 7 July 1997)
5. Form of the subsidy
Non repayable subsidy
6. Beneficiaries:  to whom and how the subsidy is provided
To industrial or industrial support services SMEs, existing or newly established, whose
activities take place within the Autonomous Community of the Canary Islands.
This aid is contingent on the applicants meeting their tax and social security obligations, and
the recipients must produce documents showing th at the subsidized activity has been carried out.
7. Subsidy per unit or total amount of the subsidy
Ptas 1,189,500,000Maximum extent of aid:  50 per cent of the investment
8. Duration of the subsidy
Indefinite
9. Statistical data permitting an assessment of the trade effects of the subsidy
The programme has no trade effects.G/SCM/N/38/EEC/Add.13
Page 40
6. Subsidies for Projects to Save and Diversify Energy and to Utilize Sources of Renewable
Energy
1. Title of the subsidy programme
Subsidies for Projects to Save and Diversify Energy and to Utilize Sources of Renewable
Energy
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To subsidize feasibility studies for projects to save and diversify energy and installations
designed to secure a reduction in energy consump tion and an improved environmental impact in the
various sectors of production.
4. Authority for the subsidy
Basic regulation:  Ministerial Order of 6 February 1997 (BOE No. 34)Community regulation:  Directives in favour of the environment (94/C 72/03, published on
10 March 1994) clearly relate to this type of aid.
Notice for 1997:  Order of 16 May 1997 (BOC No. 69 of 29 May 1997).
5. Form of the subsidy
Non-repayable subsidy
6. Beneficiaries:  to whom and how the subsidy is provided
Private or public enterprises, natural persons, non-profit-making institutions, neighbourhood
associations and local corporations within the Autonomous Community of the Canary Islands.
This aid is contingent on the applicants meeting their tax and social security obligations, and
the recipients must produce documents showing th at the subsidized activity has been carried out.
7. Subsidy per unit or total amount of the subsidy
Ptas 47 million
Maximum extent of the aid:  50 per cent of the investment
8. Duration of the subsidy
Indefinite
9. Statistical data permitting an assessment of the trade effects of the subsidy.
The programme has no trade effects.G/SCM/N/38/EEC/Add.13
Page 41
7. Procasol Project
1. Title of subsidy programme
Single or Specific Subsidy to the Procasol Project
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To provide incentives to the market for low- temperature solar energy in the Canary Islands.
4. Authority for the subsidy
The Community Directives on State Aid to the Environment (94/C 72/03 published on
10 March 1994) clearly relate to this kind of aid.
Charged to the "REGIS II" Programme (FEDER)
5. Form of the subsidy
Non-repayable subsidy
6. Beneficiaries:  to whom and how the subsidy is provided
Private or public enterprises, natural persons, non-profit-making institutions, neighbourhood
associations and local corporations within the Autonomous Community of the Canary Islands.
This aid is contingent on the applicants meeting their tax and social security obligations, and
the recipients must produce documents showing th at the subsidized activity has been carried out.
7. Subsidy per unit or total amount of the subsidy
Ptas 47 million
Maximum extent of the aid:  50 per cent of the investment
8. Duration of the subsidy
Indefinite
9. Statistical data permitting an assessment of the trade effects of the subsidy
The programme has no trade effects.G/SCM/N/38/EEC/Add.13
Page 42
AUTONOMOUS COMMUNITY:  CANTABRIA
1. Reindustrialization and Organization Aid Fund (FARO)
1. Title of subsidy programme
Reindustrialization and Or ganization Aid Fund (FARO)
2. Period covered by the notification
1997
3. Purpose of the subsidy
Its purpose is to grant temporary aid to enterprises.  Temporary aid means assistance which,
motivated by serious company difficulties, is design ed to resolve an immediate short-term liquidity
squeeze or technical insolvency by granting emergency aid to the financial situation which will enable
the beneficiary enterprise to carry out a recovery plan.
A further objective is to grant the restructuring aid, justified by the needs of regional
development, required to launch a strategic plan for industrial SMEs including the necessaryadjustments to reorganize and rationalize activities, abandoning the non-viable ones and developing
new activities or streamlining them.
4. Authority for the subsidy
Decree No. 58/1997 of 6 June 1997 regulating the Reindustrialization and Organization Aid
Fund (FARO).
5. Form of the subsidy
The aid may take the form of loans, loan guar antees and equity participation, but must not
exceed 45 per cent of the shareholding.
6. Beneficiaries
Potential beneficiaries of the plan are "small- and medium-sized enterprises having
management difficulties" which are active within the Autonomous Community of Cantabria.
Enterprises may also take advantage of the plan, without meeting the above requirements
regarding the size and the percentage of shareholding, if they submit applications in the context of this
agreement which are considered to be of special interest for the social or regional industrial policy of
Cantabria, because of the expediency of maintaining a competitive market structure.
"Small and medium-sized industrial enterprises having management difficulties" are those
which, because of their latest results, the deterioration in their current situation, their limited
development potential or poor prospects for future profits, are unable to finance from their own
resources the achievement of the aims and purposes for which the aid provided for the presentagreement has been established.
This aid is contingent on the applicants meeting their tax and social security obligations, and
the recipient must produce documents showing that the subsidized activity has been carried out.G/SCM/N/38/EEC/Add.13
Page 43
7. Amount of the subsidy
The total amount budgeted for in the 1997 financial year was Ptas 500 million.
8. Duration of the subsidy
The programme is scheduled to remain in force for four years.
9. Statistical data permitting an assessment of the trade effects of the subsidy
In 1997, aid was granted through this programme to ten enterprises and this has exhausted the
initial amount allocated.
2. Incentives for the renewal of industry and services (IRIS)
1. Title of subsidy programme
Incentives for the Renewal of Industry and Services (IRIS)
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
The promotion of activities for the establishment of new industries, the renewal of production
assets and those supporting and consolidating the labour markets as well as the establishment of
enterprises to support the industrial sector, focused on the creation, design, production and sale of
industrial goods, without overlooking the necessary attention to quality and the environment.
4. Authority for the subsidy
Decree No. 19/1995 of 22 June 1995, regulating the Regional Incentives Fund, BOC of
30 June, approved as Aid No. 351/1995 by a lett er of the European Commission dated 18 May 1995,
amended by Decree No. 19/1997 of 7 March 1997, which replaced the earlier title by that of
Incentives for the Renewal of Industry and Services (IRIS).
Order of 14 April 1997 approving the notice of Incentives for the Renewal of the Industry and
Services (IRIS) for 1998.
5. Form of the subsidy
Non-repayable subsidy.
6. Beneficiaries
Potential beneficiaries are industrial enterprises, whatever their legal form, which are
regarded as SMEs and support services enterprises in the areas of management, market research and
services common to enterprises.G/SCM/N/38/EEC/Add.13
Page 44
The granting and receipt of this aid are contingent on the applicants meeting their tax and
social security obligations, and the recipients must produce documents showing that the subsidized
activity has been carried out.
7. Subsidy per unit or total amount of the subsidy
The maximum extent of the aid is 40 per cent of the investment.Total amount budgeted:  Ptas 468,480,000.Investments subsidized:  Ptas 3,249,741,805.
Number of applicants:  196
Number of beneficiaries:  119
8. Duration of the subsidy
The programme is scheduled to remain in force for the period 1995-1999.
9. Statistical data permitting assessment of the trade effects of the subsidy
The programme has no trade effects because of its small amount compared with the size of
the sector and of its small direct impact on production.  Marketing and distribution activities are
excluded from this aid.  The number of enterprises subsidized is 119.
3. Subsidies for the Craft Sector in Cantabria
1. Title of subsidy programme
Subsidies for the Craft Sector in Cantabria
2. Period covered by the notification
1997
3. Policy objective and/or purposes of the subsidy
To promote activities for the establishment of new craft workshops, their development and
modernization as an important factor for creating jobs with a small amount of investment and for
helping to create future enterprises and industrial activities.
4. Authority for the subsidy
Decree No. 97/1995 of 9 October 1995, regulating aid to the craft sector and craft activities,
Official Gazette of Cantabria (BOC) of 20 Octobe r 1995, approved by the European Commission in a
letter of 18 May 1995.
Order of 13 May 1997 approving and regulating the notice given of aid to the craft industry
for the 1997 financial year.G/SCM/N/38/EEC/Add.13
Page 45
5. Form of the subsidy
Non-repayable subsidy.
6. Beneficiaries
Potential beneficiaries are individual craftsmen and craft enterprises, whatever their legal
form, which are regarded as SMEs and craft associations and institutions which have the objective of
promoting and developing craft products.
The granting and receipt of this aid are contingent on the applicants meeting their tax and
social security obligations and the recipient mu st produce documents showing that the subsidized
activity has been carried out.
7. Subsidy per unit or total amount of that subsidy
Maximum extent of aid:  40 per cent of the investment.Total amount budgeted:  Ptas 8,000,000.Subsidies granted:  Ptas 7,625,786.
Number of applicants:  16
Number of beneficiaries:  15
8. Duration of the subsidy
The programme is scheduled to remain in force for the period 1995-1999.
9. Statistical data permitting an assessment of the trade effects of the subsidy
The programme has no trade effects because of its small amount compared with the size of
the sector and of its small direct impact on production.  Marketing and distribution activities areexcluded from this aid.  The number of enterprises subsidized is 15.
4. Support to the Mining Industry
1. Title of subsidy programme
Support to the Mining Industry and Utilization of Mineral and/or Thermal Waters
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To promote activities in this sector, for example, geological surveys to discover new raw
materials or, where appropriate, conserve the existing reserves.G/SCM/N/38/EEC/Add.13
Page 46
4. Authority for the subsidy
Decree No. 59/1997 of 6 June 1997 regulating support to the mining regime and utilization of
mineral and/or thermal waters, BOC of 13 June 1997.
Order of 9 June 1997 of the Regional Ministry of Industry, Tourism, Labour and
Communications, approving the notice of aid for the mining regime in the 1997 financial year, BOC
of 19 June 1997.
This is de minimis aid.
5. Form of the subsidy
Non-repayable subsidy.
6. Beneficiaries
Potential beneficiaries are SMEs whose activities are regulated by the Mining Act and its
Regulations and are carried out within the Autonomous Community of Cantabria.
The granting and receipt of this aid are contingent on the applicants meeting their tax and
social security obligations, and the recipient must produce documents showing that the subsidizedactivity has been carried out.
7. Subsidy per unit or total amount of the subsidy
Maximum extent of the aid:  40 per cent of the investment.Total amount budgeted:  Ptas 40 million.Subsidies granted:  Ptas 18,826,447.Number of applicants:  4
Number of beneficiaries:  4
8. Duration of the subsidy
The programme is scheduled to remain in force for the period 1995-1999.
9. Statistical data permitting an assessment of the trade effects of the subsidy
The programme has no trade effects because of its small amount compared with the size of
the sector and of its small direct impact on production.  Marketing and distribution activities areexcluded from this aid.  The number of enterprises subsidized is four.G/SCM/N/38/EEC/Add.13
Page 47
AUTONOMOUS COMMUNITY:  CASTILE-LA MANCHA
1. Decree on Competitiveness and Business Investment Incentives
1. Title of subsidy programme
Decree on Competitiveness and Business Investment Incentives
2. Period covered by the notification
1997
3. Purpose of the subsidy
To help create, adapt, or, as appropriate, improve the regions economic fabric.
4. Authority for the subsidy
Decree No. 13/1995 of the Regional  Ministry of Industry and Labour.
5. Form of the subsidy
Non-repayable subsidy and reduced interest rates on loans.
6. Beneficiaries
Industrial and services enterprises and associations of enterprises, especially SMEs, deciding
to operate or already operating in Castile-La Mancha.
7. Amount of the subsidy
Number of beneficiaries:  1,313
Amount budgeted:  Ptas 2,959,577,855.
Subsidy per unit:  Ptas 2,254,058.
8. Duration of the subsidy
Indefinite.
9. Statistical data permitting an assessment of the trade effects of the subsidy
The foreign trade effects of the subsidy are slight because it is basically focused on small- and
medium-sized enterprises, which are engaged in domestic trade.G/SCM/N/38/EEC/Add.13
Page 48
2. Aid under the Retex Community Programme
1, Title of subsidy programme
Aid for economic diversification in regions with textiles-clothing factories under the RETEX
Community Programme
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To promote investment in the textiles-clothi ng sector in Castile-La Mancha, under the
Community RETEX Initiative.
4. Authority for the subsidy
Order of 8 February 1995 of the Regional Ministry of Industry and Labour.
5. Form of the subsidy
Non-repayable subsidy and reduced interest rates on loans.
6. Beneficiaries
Existing enterprises, irrespective of their legal status, investing from Ptas 3-75 million, as
well as associations of enterprises that are active within the sector.
7. Amount of the subsidy
Number of beneficiaries:  56Amount budgeted:  Ptas 384,230,749.Subsidy per unit:  Ptas 6,861,263.
8. Duration of the subsidy
1994-1997 for the granting of aid.
9. Statistical data permitting an assessment of the trade effects of the subsidy
The impact on foreign trade is minimal since the beneficiaries of this aid are SMEs.G/SCM/N/38/EEC/Add.13
Page 49
AUTONOMOUS COMMUNITY:  CASTILE-LEÓN
1. Projects to Save, Replace and Diversify Energy
1. Title of subsidy programme
Subsidies for projects to save, replace and diversify energy, rational uses of energy and
renewable energy
2. Period covered by the notification
1997
3. Purpose of the subsidy
The exploitation of local energy resources (thermal solar energy, photovoltaic solar energy,
wind energy, small hydroelectric stations, biomass, passive solar energy), rational use of energy
(energy savings, replacement of petroleum-derived products), promotion of activities to make local
energy resources better known and to enhance their use.
4. Authority for the subsidy
Order of the Regional Ministry of Industry, Trade and Tourism of 18 December 1997.
5. Form of the subsidy
Non-repayable subsidies for the investment made, to a maximum amount of Ptas 10 million.
6. Beneficiaries
Public or private enterprises, groups of enterprises.
7. Amount of the subsidy
Amount budgeted:  Ptas 250,000,000.
8. Duration of the subsidy
Annual
9. Statistical data permitting an assessment of the trade effects of the subsidy
The statistical data available do not reflect the trade effects of this subsidy.
2. Aid for Business Investment. Territorial Incentives
1. Title of subsidy programme
Aid for Business Investment.  Territorial IncentivesG/SCM/N/38/EEC/Add.13
Page 50
2. Period covered by the notification
1997
3. Purpose of the subsidy
To boost the endogenous development potential of Castile-León in promotable activities.
4. Authority for the subsidy
Decree No. 151/89 of 20 July 1989 of the Regional Ministry of the Presidency and Territorial
Administration and Order of 30 May 1995 of the Re gional Ministry of the Economy and Finance.
5. Form of the subsidy
Non-repayable subsidy of between 40 and 50 per cent of the approved investment.
6. Beneficiaries
Enterprises carrying out investment projects in Castile-León that involve the creation of new
or expansion of existing establishments.
7. Amount of the subsidy
Ptas 3,295 million
8. Duration of the subsidy
Several years
9. Statistical data permitting assessment of the trade effects of the subsidy
The statistical data available do not reflect the trade effects of this subsidy.
3. Regional and Territorial Incentives
1. Title of subsidy programme
Subsidies through Advance or Bridging Loans for Regional and Territorial Incentives
2. Period covered by the notification
1997
3. Purpose of the subsidy
To speed up the payment of investment subsidie s so that they are available immediately a
project is launched.G/SCM/N/38/EEC/Add.13
Page 51
4. Authority for the subsidy
Agreement of 5 March 1997 of the Governing Council of the Castile-León Economic
Development Agency.
5. Form of the subsidy
Interest subsidies.
6. Beneficiaries
The potential beneficiaries are those enterprises that have been granted investment subsidies,
either from the regional incentives regulated by  Royal Decree No. 570/1988, of 3 June 1988, or from
the territorial incentives that have been obtain ed under any of the announcements made by the
General Administration of the Autonomous Community of Castile-León for this type of incentive and
which, on the date of their application for this aid, had made a significant start with their investments.
Enterprises that process or market products included in Annex II to the Treaty of Rome are excluded.
7. Amount of the subsidy
Amount budgeted:  Ptas 350,000,000.
8. Duration of the subsidy
Several years.
9. Statistical data permitting an assessment of the trader effects of the subsidy
The statistical data available do not reflect the trade effects of this subsidy.
4. Subsidies for Investment by SMEs
1. Title of subsidy programme
Subsidies for Investment by Small- and Medium-Sized Enterprises (SMEs)
2. Period covered by the notification
1997
3. Purpose of the subsidy
To encourage investment projects in Castile-León in new establishments, the expansion,
modernization, rationalization or restructuring of existing establishments which help to promote
business investment and to direct them towards previously specified areas within Castile-León.
4. Background and authority for the subsidy
Agreement of 14 November 1996 of the Governing Council of the Castile-León Economic
Development Agency.G/SCM/N/38/EEC/Add.13
Page 52
5. Form of the subsidy
Non-repayable subsidy.
6. Beneficiaries
SMEs, i.e. enterprises that meet the following requirements:
- Employ fewer than 250 workers;
- have an annual turnover that does not exceed 40 million Ecus, or an overall balance
that does not exceed 27 million Ecus;
- do not have a participation in their equity by enterprises that do not meet these
conditions exceeding 25 per cent, except in the case of public investment companies,
risk-capital companies or institutional invest ments that do not exercise control;  and
- have an amount of subsidized investment that is between Ptas 15 and 100 million or,
in the case of investment projects, between Ptas 15 and 300 million, provided that
these are in special action areas.
The beneficiaries must show that they have paid their tax and social security contributions
and have no outstanding debt to the Autonomous Community of Castile-León.  They must also
provide evidence that the investment that is the object of the subsidy has been made.
7. Amount of the subsidy
Amount budgeted:  Ptas 2,313,536,000 million.
8. Duration of the subsidy
Until 31 December 1999.
9. Statistical data permitting an assessment of the trade effects of the subsidy
The statistical data available do not reflect the trade effects of this subsidy.
5. Business Excellence Programme:  Business Analyses, Quality and Competitiveness
1. Title of subsidy programme
Business Excellence:  Business Analyses, Quality and Competitiveness
2. Period covered by the notification
1997
3. Purpose of the subsidy
(a) To make integral business analyses and othe r specific analyses with respect to quality
which render it possible to assess the situation of the enterprise and define the
strategy to be followed;  andG/SCM/N/38/EEC/Add.13
Page 53
(b) to introduce the necessary corrective measures to improve competitiveness, including
those connected with quality enhancement.
4. Authority for the subsidy
Agreement of the Governing Council of the Castile-León Economic Development Agency of
5 March 1997.
5. Form of the subsidy
The incentive consists of a non-repayable subsidy of up to 50 per cent of the approved
subsidizable expenditure, excluding VAT.  The ceiling is Ptas 3 million.
6. Beneficiaries
SMEs that operate in Castile-León and belong to the following sectors of activity, according
to the designation and structure of the C NAE – 1993 (R.D. No. 1560/1992 of 18 December 1992):
(a) Mining, quarrying and manufacturing industries in Sections (C) and (D), except
subsection DA;
(b) Services;  Section (K), divisions 72, 73 and 74, except classes 7411, 7415 and 7481
and Section (O), class 9211;
(c) Building and construction;  Section F;  and(d) Hotel services;  Section (H), except groups 55.3, 55.4 and 55.5.The sectors of activity included within the scope of the ECSC Treaty, shipbuilding and ship
launching, the transport sector and the production, processing and marketing of products included in
Annex II of the Treaty of Rome are excluded from this aid.
7. Amount of the subsidy
Amount budgeted:  Ptas 265 million.
8. Duration of the subsidy
Annual
9. Statistical data permitting an assessment of the trade effects of the subsidy
The statistical data available do not reflect the trade effects of this subsidy.
6. Subsidies to Craftsmen and Workshops
1. Title of subsidy programme
Subsidies to Craftsmen and Workshops in Castile-León for the Economic Promotion of this
SectorG/SCM/N/38/EEC/Add.13
Page 54
2. Period covered by the notification
1997
3. Purpose of the subsidy
To enhance the competitiveness of the crafts sector and thus contribute towards its full
integration into the current business structure by s ubsidizing projects involving investment in Castile-
León in new workshops, the expansion or modernization of those already existing, and carrying out
action to promote this activity and contribute towards improving the production structure, the
marketing or further professional training, as a way of promoting the economy of the crafts sector.
4. Authority for the subsidy
Agreement of the Governing Council of the Castile-León Economic Development Agency of
5 March 1997.
5. Form of the subsidy
Non-repayable subsidy.
6. Beneficiaries
Beneficiaries are craftsmen and craft workshops that meet the requirements to be considered
as small enterprises:
- Employ less than 50 people;
- have an annual turnover that does not exceed 7 million Ecus or net assets that do not
exceed 5 million Ecus;
- have an equity participation by enterprises that do not meet these conditions that does
not exceed 25 per cent, except in the case of public investment companies, risk-
capital companies or institutional investments that do not exercise control;  and
- have technically, economically and financially viable projects, where investments are
concerned, which are not greater than Ptas 15 million.
7. Amount of the subsidy
Budgeted amount:  Ptas 170 million.
8. Duration of the subsidy
Annual
9. Statistical data permitting an assessment of the trade effects of the subsidy
The statistical data available do not reflect the trade effects of this subsidy.G/SCM/N/38/EEC/Add.13
Page 55
7. Financial Aid to Credit Operations by SMES
1. Title of subsidy programme
Financial Aid to Subsidize Interest Rates for Credit Operations by SMEs
2. Period covered by the notification
1997
3. Purpose of the subsidy
To reduce the interest rate for loan and financial leasing operations by SMEs for the purpose
of investment.
4. Authority for the subsidy
Decree No. 39/96 of 22 February 1996 of the Autonomous Community of Castile-León and
Agreements of the Governing Council of the Castile-León Economic Development Agency dated
19 April and 7 October 1996 and 5 March 1997.
5. Form of the subsidy
Interest-rate subsidy up to a maximum amount of three points of interest rate on the loan or
lease.
6. Beneficiaries
The beneficiaries are SMEs whose main commercial establishments are in Castile-León.
7. Amount of the subsidy
Amount budgeted:  Ptas 500,000,000.
8. Duration of the subsidy
Annual
9. Statistical data permitting an assessment of the trade effects of the subsidy
The statistical data available do not reflect the trade effects of this subsidy.
8. Support for Technological Development Projects in SMEs
1. Title of subsidy programme
Support for Technological Development Projects in SMEs
2. Period covered by the notification
1997G/SCM/N/38/EEC/Add.13
Page 56
3. Purpose of the subsidy
To provide incentives for the carrying out of technological development projects with the aim
of encouraging the incorporation of technological innovation into the enterprises active or about to
become active in  Castile-León.
The expression "technological development projects" comprises the following types of action:
- Projects which entail a medium technical risk and imply the development and/or
improvement of processes and/or products with an eye to their marketing;
- projects having the objective of incorporating and/or creatively adapting new
technologies or existing technologies;  and
- pre-competitive research projects which may imply a high technical risk and whose
results may not be directly marketable.
4. Authority for the subsidy
Agreement of the Governing Council of the Castile-León Economic Development Agency of
5 March 1997.
5. Form of the subsidy
The incentives will consist of a non-repayable subsidy of up to 50 per cent of the costs
approved as eligible.
6. Beneficiaries
The beneficiaries will be small and medium-sized enterprises.
7. Amount of the subsidy
Amount budgeted:  Ptas 300,000,000.
8. Duration of the subsidy
Annual
9. Statistical data permitting an assessment of the trade effects of the subsidy
The statistical data available do not reflect the trade effects of this subsidy.
9. Support for Technological Support Services to SMEs
1. Title of subsidy programme
Support for Technological Support Services to SMEs
2. Period covered by the notification
1997G/SCM/N/38/EEC/Add.13
Page 57
3. Purpose of the subsidy
The purpose of this programme is to facilitate the establishment of an environment of
interpellations and media at the service of the SMEs of Castile-León for the development oftechnological activities.
4. Authority for the subsidy
Agreement of the Governing Council of the Castile-León Economic Development Agency of
5 March 1997.
5. Form of the subsidy
In order to hire outside services for the purpose of preparing applications for aid to national
and/or European programmes in s upport of technological research and development, such as requests
for aid to the Centre for Industrial Technological Development (CDTI), the Ministry of Industry andEnergy programmes in support of corporate R& D, the Marco R&D Programme of the European
Union, the Eureka Programme and others of a similar nature and of preparing technological analyses
and/or action plans in the area of technological innovation, the incentives will consist of a non-
repayable subsidy of up to 70 per cent of the amount invoiced by the consultant enterprise or entity,
excluding value added tax (VAT), with the following ceilings:
- For the preparation of applications for aid to national programmes supporting
technological R&D:  up to Ptas 1,500,000 per action;
- for the preparation of aid applications to European programmes supporting
technological R&D:  up to Ptas 2,500,000 per action;  and
- for the preparation of action plans in the matter of technological innovation:  up to
Ptas 2,000,000 per action.
In order to encourage non-profit-making institutions, located in Castile-León, to engage in
technological revitalization services such as:  the carrying out of sectoral technological analyses forthe purpose of identifying SMEs in Castile-León with the capacity to develop R&D projects and/or to
participate in national and/or European programmes in support of corporate R&D;  the preparation of
databases of innovatory enterprises;  the undertaking of publicity activities aimed at the SMEs of
Castile-León with a view to the preparation of applications for aid to national and/or European
programmes in support of R&D, and activities of a similar nature, the incentives will consist of a non-repayable subsidy of up to 100 per cent of the approved expenses.  The maximum cost per action
planned shall not exceed Ptas 16 million.  Not more than two actions by a single non-profit-making
institution will be subsidized under this scheme.
6. Beneficiaries
The beneficiaries will be small- and medium-sized enterprises and non-profit-making
institutions.
7. Amount of the subsidy
Amount budgeted:  Ptas 155,000,000.G/SCM/N/38/EEC/Add.13
Page 58
8. Duration of the subsidy
Annual
9. Statistical data permitting assessment of the trade effects of the subsidy
The statistical data available do not reflect the trade effects of this subsidy.G/SCM/N/38/EEC/Add.13
Page 59
AUTONOMOUS COMMUNITY:  CATALONIA
1. Aid under Technological Programmes Connected with the SEAT Modernization Plan
1. Title of subsidy programme
Aid under Technological Programmes Connected with the SEAT Modernization Plan
(1994-1997)
2. Period covered by the notification
1996
3. Purpose of the subsidy
The aid is intended for innovation, technological development and training projects in the
SEAT company, a subsidiary of the Volkswagen Group, under a plan that will mean a 29 per cent
reduction in SEAT's capacity and a five per cent capacity reduction of the VW Group, at the
Community level.
4. Authority for the subsidy
Commission Decision No. 96/257 /EC of 31 October 1995 concerning aid granted by Spain to
SEAT S. A., a member of the VW Group.
5. Form of the subsidy
Non-repayable subsidy.
6. Beneficiaries
The subsidy is payable exclusively to the SEAT company, which must produce evidence to
the Spanish authorities that the innovation, technological development and training projects have beenimplemented.
7. Amount of the subsidy
The amount for the 1997 financial year was Ptas 105.7 million.
8. Duration of the subsidy
The Modernization Plan is for the period 1994-1997 and subsidies may be granted in the
years 1995-1998.
9. Statistical data permitting an assessment of the trader effects of the subsidy
The subsidy has no adverse effects on trade for SEAT's competitors, since it fulfils the
requirements under the Agreement on Subsidies and Countervailing Measures for aid for this purpose(R&D, Article 8.2(a));  furthermore, the Modernizat ion Plan for which the aid is intended involves
reductions of 29 per cent in production capacity and 49 per cent in employment by the end of the
Plan, so that by the end of 1997 SEAT's technical capacity will not exceed 2,125 units per day,
compared with 3,000 units per day at the end of 1993.G/SCM/N/38/EEC/Add.13
Page 60
2. Aid to Enterprises for Technologically Innovative R&D Projects
1. Title of subsidy programme
Aid to Enterprises for Technologically Innovative R&D Projects
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To promote new basic industrial research projects, applied research projects and projects for
the development of technologically advanced products in order to encourage technological
innovation.
4. Authority for the subsidy
Resolution of 24 May 1995 (Official Gazette of the Generalitat of Catalonia of 5 May 1995).
5. Form of the subsidy
Non-repayable subsidy.
6. Beneficiaries
SMEs with a production plant in Catalonia.
7. Total amount budgeted
Payment made:  Ptas 182,613,576.
8. Duration of the subsidy
1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
The programme has no trade effects because of its small amount compared with the size of
the sector.
3. CIRIT-CIDEN Aid to R&D Projects Involving University Graduates
1. Title of subsidy programme
CIRIT-CIDEM Aid for the Realization of R&D Projects Involving University Graduates
2. Period covered by the notification
1997G/SCM/N/38/EEC/Add.13
Page 61
3. Policy objective and/or purpose of the subsidy
To help develop research activities being carried out by enterprises established in Catalonia.
4. Authority for the subsidy
Resolution of 19 July 1996 (Official Gazette of the Generalitat of Catalonia of
6 September 1995).
5. Form of the subsidy
Non-repayable subsidy.
6. Beneficiaries
Enterprises having their registered office or a production plant in Catalonia
7. Total amount of the subsidy
Payments made:  Ptas 28,100,000.
8. Duration of the subsidy
1995-1997.
9. Statistical data permitting an assessment of the trade effects of the subsidy
The programme has no trade effects because of its small amount compared with the size of
the sector.
4. Quality Promotion Programme
1. Title of subsidy programme
Quality Promotion Programme
2. Period covered by the notification
1997
3. Policy object and/or purpose of the subsidy
Promotion of industrial quality.
4. Authority for the subsidy
Order of 26 May 1992 (Official Gazette of the Generalitat of Catalonia of 26 June 1992).
5. Form of the subsidy
Non-repayable subsidy.G/SCM/N/38/EEC/Add.13
Page 62
6. Beneficiaries
SMEs with an operational plant in Catalonia.
7. Total amount of the subsidy
Payments made:  Ptas 57,798,756.
8. Duration of the subsidy
Until 1997.
9. Statistical data permitting an assessment of the trade effects of the subsidy
The programme has no trade effects because of its small amount compared with the size of
the sector and the high number of recipients, since it has involved 458 enterprises.G/SCM/N/38/EEC/Add.13
Page 63
AUTONOMOUS COMMUNITY:  EXTREMADURA
1. Support of Agro-Industry
1. Title of subsidy programme
Subsidies to Agro-Industry
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Its objective is to establish, modernize and approve agro-industry in Extremadura, making it
more technical and adapting it to new markets with  the primary aim of securing an outlet for the
products and a profit for the producers.
4. Authority for the subsidy
Decree No. 16/93 of the Autonomous Community of Extremadura.
5. Form of the subsidy
Non-repayable subsidy and subsidized loan.
6. Beneficiaries:  to whom and how the subsidy is provided
The potential beneficiaries are enterprises, associations of enterprises or institutions which
have as their object the improvement or establishment of competitive firms.  Investment aid is limited
to the zones classified by the Commission of the European Union under Objective 1, since the aid
under this programme and in this case is designed to promote regional development.
This aid is contingent on the applicants meeting their tax and social security obligations, and
the recipient must product documents showing that  the subsidized activity has been carried out.
7. Subsidy per unit or total amount of the subsidy
There are no limits on the subsidy, although there are budgetary conditions and priority for
the most sensitive productions.
The maximum subsidy to agro-industry is 40 per ce nt in Decree No. 16/93, plus loan-interest
subsidies where appropriate.
8. Duration of the subsidy
The programme has no date limit, its duration being subject to a decision by the Autonomous
Community of Extremadura.G/SCM/N/38/EEC/Add.13
Page 64
9. Statistical data permitting an assessment of the trade effects of the subsidy
The data are indirect through the marketing of products and the gradual increase in sales and
exports that are occurring, with a greater presence on the markets of Extremaduran products.
Denomination of the aid 1997
Subsidies to agro-industry Ptas 336,207,0061
Loans to SMEs with subsidized interest Ptas 3,792,994 
2. Incentives to Investment by SMEs
1. Title of subsidy programme
Incentives to Investment by SMEs
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To increase the production basis of the region, encouraging the growth of specific productive
sectors which are regarded as priorities for the regional economy.
4. Authority for the subsidy
Decree No. 74/1993 of 8 June 1993, DOE of 19 June 1993.Decree No. 108/1996 of 2 July 1996, DOE of 9 July 1996.
5. Form of the subsidy
Non-repayable subsidy.
6. Beneficiaries:  to whom and how the subsidy is provided
The potential beneficiaries are SMEs that invest in the territory of Extremadura in the priority
sectors indicated in the rule.  The region has been classified in Objective 1 by the European Union,
the aid in question being financed by FEDER funds.
For the subsidy to be paid, the enterprise must prove that it has met its tax and social security
obligations.  It must also produce documents showing that the subsidized activity has been carried out.
7. Total amount of the subsidy
The subsidies granted in the period totaled Ptas 4,172,000,000.  The subsidies actually paid
amounted to Ptas 1,074,900,000, corresponding to subsidies approved in the financial year covered bythis notification and in previous years.
                                                     
1 Resolution pending.G/SCM/N/38/EEC/Add.13
Page 65
8. Duration of the subsidy
Since this action is included in the P.O. FEDER EXTREMADURA 1994/1999 programmes,
the scheduled duration runs until 31 December 1999.
9. Statistical data permitting an assessment of the trade effects of the subsidy
The scheme has no trade effects, because of the size of the enterprises to which it is directed,
the amount involved and the number of beneficiaries.  During the period, 810 applications were
granted for an amount of Ptas 4,172,000,000, an average of Ptas 5,150 million/application.
3. Subsidized Interest on Loans or Leasing Operations for SMEs
1. Title of subsidy programme
Subsidized Interest on Loans and Leasing Operations for SMEs
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To establish financing lines of a preferential nature intended for the promotion and economic
and financial support of the SMEs.
4. Authority for the subsidy
Decree No. 11/1994 of 8 February 1994, Offi cial Gazette of Extremadura (DOE) of
12 February 1994.
Decree No. 90/1994 of 14 June 1994, DOE of 30 June 1994.
5. Form of the subsidy
Subsidization of interest on operations duly entered into with financial entities.
6. Beneficiaries:  to whom and how the subsidy is provided
The potential beneficiaries are SMEs that invest in the territory of Extremadura in the priority
sectors indicated in the rule.  The region has been classified in Objective 1 by the European Union.
For the subsidy to be paid, the enterprise must prove that it has met its tax and social security
obligations.  It must also produce documents showing that the subsidized activity has been carried out.
7. Total amount of the subsidy
The subsidies actually paid amount to Ptas 854,000,000, corresponding to subsidies approved
during the financial year covered by this notification and in previous years.G/SCM/N/38/EEC/Add.13
Page 66
8. Duration of the subsidy
There is no time-limit provided.
9. Statistical data permitting an assessment of the trade effects of the subsidy
The scheme has no trade effects because of the size of the enterprises to which it is directed,
the amounts involved and the number of beneficiaries.  During the period aid was granted in some
4,100 cases, for Ptas 854 million, an  average of Ptas 0.2 million/application.G/SCM/N/38/EEC/Add.13
Page 67
AUTONOMOUS COMMUNITY:  GALICIA
1. Non-Repayable Subsidies to Cooperation among Enterprises
1. Title of subsidy programme
Non-Repayable Subsidies to Cooperation Among Enterprises
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
The development of projects of a productive, commercial or technological nature or of joint
capital investment operations, involving two or more independent enterprises, at the national orinternational levels, which promote economies of scale, internationalization and improved
competitiveness.
4. Authority for the subsidy
Decree No. 309/1995, of 20 November 1995 (Official Gazette of Galicia (DOGA) of
5 December 1995).
Order of 24 July 1996 (DOGA of 8 August 1996).
Order of 13 November 1996 (DOGA of 9 December 1996).
5. Form of the subsidy
Non-repayable subsidy on the amount of the expenditure incurred in concluding agreements
or contracts, or prior to the signature of such agreements or contracts (lawyers' fees, travel,
maintenance allowances, etc.).
6. Beneficiaries
Trading companies or cooperatives with registered office and tax residence and main business
in the Autonomous Community of Galicia that engage  in activities eligible for the subsidies and are
considered to be SMEs in accordance with the definition by the European Union.
7. Subsidy per unit or total amount of the subsidy
The subsidy can be up to 75 per cent of the eligible costs.  The ceiling is Ptas 16 million per
enterprise and per project.
8. Duration of the subsidy
The programme is renewable annually.G/SCM/N/38/EEC/Add.13
Page 68
9. Statistical data permitting an assessment of the trade effects of the subsidy
No data are available which would permit an assessment to be made of the trade effects of
this subsidy.G/SCM/N/38/EEC/Add.13
Page 69
AUTONOMOUS COMMUNITY:  MADRID
1. Innovation and Employment Master Plan
1. Title of the subsidy programme
Innovation and Employment Master Plan
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Its objective is to promote industrial research and precompetitive activities, whether
individualized or cooperative, for the purpose of giving Madrid enterprises a trans-European
dimension so as to improve their competitiveness and viability and/or create employment.  It is also
designed to promote business innovation and, in some cases, activities connected with emergent
technology enterprises in the telecommunications, energy saving and environmental sectors.
4. Authority for the subsidy
Order No. 1335/1997, of 13 May 1997, of the Regi onal Ministry of Economic Affairs and
Employment of the Autonomous Community of Madrid (Official Gazette of the Autonomous
Community of Madrid (BOCM) No. 124 of 27 May 1997).
5. Form of the subsidy
Non-repayable subsidy.
6. Beneficiaries:  to whom and how a subsidy is provided
Any type of enterprise can be a beneficiary in the case of industrial research or precompetitive
development projects while, for the remaining pr ojects, the beneficiaries must come within the
provisions of the EC Directives concerning  state aid to SMEs (DOCE No. C-213 of 1996).
7. Subsidy per unit or total amount of the subsidy
Ptas 444.6 million.The ceilings are:
50 per cent for industrial research projects (+ 10 per cent in the case of SMEs);
25 per cent for precompetitive development projects (+10 per cent in the case of
SMEs);
50 per cent for innovation projects by SMEs;
15 per cent for material investment projects in the creation of small emergent
technology enterprises;  andG/SCM/N/38/EEC/Add.13
Page 70
7.5 per cent for material investment projects for the creation of medium-sized
emergent technology enterprises.
8. Duration of the subsidy
The programme is scheduled to continue for three years, up to 31 December 2000.
9. Statistical data permitting an assessment of the trade effects of the subsidy
The programme has no trade effects because of its small amount compared with the size of
the business sector in the Autonomous Community of Madrid and the high number of applicationsreceived for the programme, which involved 190 enterprises in 1997.
2. Diversification of Activities and Job Creation
1. Title of the subsidy programme
Programme for the Development of Objective 5(b).  Rural Areas of Madrid Measure No. 21.
Diversification of Activities and Job Creation
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Its objective is to promote non-traditional activities with a view to the diversification of
agricultural incomes, the gradual substitution of traditional produce that is in surplus and, finally, to
take advantage of the marketing potential of the city of Madrid for processed products of high added
value.
4. Authority for the subsidy
Order 1088/97 of 16 April of the Regional Ministry of Economic Affairs and Employment
(BOCM No. 97 of 25 April 1997).
5. Form of the subsidy
Non-repayable subsidy
6. Beneficiaries
The beneficiaries must fulfill the following requirements:1. Present a work plan that reflects the degree of economic viability and the situation
before and after the investment;
2. Commit themselves to carrying out the activity for which the aid has been requested
for a period of at least five years starting from the date on which the aid was granted;
3. To have fulfilled their tax and social security obligations.G/SCM/N/38/EEC/Add.13
Page 71
7. Subsidy per unit or total amount of the subsidy
The total amount of the subsidy for 1997 was Ptas 41,163,108.
The maximum amounts and limits are:Farming activities:
26.25 per cent in immovable property;15 per cent other types of investment;
33.75 per cent in immovable property (disadvantaged areas);
22.50 per cent other types of investment (disadvantaged areas);
Environmental protection activities:
35 per cent in immovable property;20 per cent other types of investment;
45 per cent in immovable property (disadvantaged areas);
30 per cent other types of investment (disadvantaged areas).
The maximum amount of investment eligible for aid is Ptas 14,860,000 per job with a
maximum of Ptas 29,720,000 per farm.
Activities complementary to farming:
35 per cent in immovable property;20 per cent other types of investment;45 per cent in immovable property (disadvantaged areas);30 per cent other types of investment (disadvantaged areas).
The amount of subsidy per beneficiary cannot exceed 50 ECUs (approximately
Ptas 8 million) for a specific item of expenditure over a period of three years, and this limit will be
applied to all the subsidies received during that period by the same beneficiary, independently of the
source of the subsidies.
8. Duration of the subsidy
The subsidy programme applies until 1999.
The order regulating the subsidy covers the budgetary period of 1998.G/SCM/N/38/EEC/Add.13
Page 72
9. Statistical data permitting an assessment of the trade effects of the subsidy
The scheme has no effect on trade on account of the small amount involved in comparison
with the size of the sector.
3. Aid to Companies for Technological R&D Projects
1. Title of the subsidy programme
Public Notification of "Aid to Companies in the Autonomous Community of Madrid for
Technological Research and Development Projects"
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
The Order in question regulates the advertising, competitive process and objectives for the
granting of aid to enterprises or groups of enterprises to carry out projects of technological research
and innovation, with the following aims in view:
(a) To promote the realization of business initiative projects;(b) to increase collaboration by universities and research centres with SMEs within the
Autonomous Community of Madrid;
(c) to encourage in the medium term participation by the small- and medium-sized
enterprises of the region in national and European technological research and
development programmes.
The subsidies are intended to act as an incentive so that enterprises undertake R&D activities
either on their own account or in collaboration with research centres, in accordance with the criteriacontained in the Community Framework for Stat e Aid for Research and Development (96/C45/06.
Official Journal of the European Communities, No. C45, of 17 February 1996).
4. Authority for the subsidy
Order 840/1997, of 16 April, of the Regional Ministry of Education and Culture of the
Autonomous Community of Madrid (BOCM No. 95, of 23 April 1997).
5. Form of the subsidy
The aid covered by the regulations in the Order in question will take the form of subsidies.
6. Beneficiaries:  to whom and how the subsidy is provided
This aid is available to small and medium enterprises or groups of such enterprises, as defined
in the Community Guidelines on State Aid to Small and Medium Enterprises (96/C213/04, Official
Journal of the European Communities of 23 July 1996).G/SCM/N/38/EEC/Add.13
Page 73
In order to receive the aid envisaged in the Order, the SMEs or groups of SMEs have to fulfill
the following requirements:
1. Exercise their activity and carry out the project benefiting from the aid within the
territory of the Autonomous Community of Madrid;
2. Have fulfilled their tax and social security obligations or else have been granted a
postponement or moratorium;
3. Have their own legal personality and sufficient capacity to act and not be disqualified
from obtaining public subsidies or entering into contracts with the State, Autonomous
Communities or other public entities.
4. Meet any other conditions required by the relevant laws in force.In accordance with the provisions of Article 47 of the General Budgetary Law of the
Autonomous Community of Madrid for 1997, and in view of the particular characteristics of theprojects envisaged in this Order, the payment of the subsidies will be made in advance.
The payment of the aid is conditional upon presentation of a bank guarantee to the General
Treasury of the Community of Madrid, guaranteeing the amount corresponding to the first year's
subsidy granted for the realization of the project an d the delay interest determined in accordance with
the provisions of Article 32 of Law 9/90 of 8 November regulating the Finance Department of the
Community of Madrid.  The time-limit for the presentation of this guarantee and the terms of its
constitution will be communicated in the notification referred to in the previous Article and its
accreditation before the Directorate-General of Research must take place, in any event, before
15 November 1997.
The second annual payment will be subject to the following conditions:(a) The presentation before 15 October 1998 of documentary evidence of the activities
carried out and the expenditure incurred in the implementation of the project, together
with a favourable assessment from the Administrative Commission responsible for
monitoring the projects;
(b) the constitution of a guarantee to cover the amount corresponding to the second
annual payment, together with the delay interest.
7. Subsidy per unit or the total amount of the subsidy
The amount budgeted for each annual payment is Ptas 675 million.The financing of the aid in question will come from the funds allocated for that purpose under
item 7737 of programme 808 of the Budget of the Regional Ministry of Education and Culture.
The amount of aid granted under this notification will be determined by the existing European
Union Regulations, although as a general rule and, more specifically in the case of SMEs, it cannot
exceed 60 per cent of the total budget of the project.
The aid will be compatible with other subsidies or aid from the authorities or public bodies,
provided that it does not exceed the above-mentioned limits.G/SCM/N/38/EEC/Add.13
Page 74
8. Duration of the subsidy
The maximum duration of the projects receiving aid under this notification will be two years
from the date on which the aid is granted.
9. Statistical data permitting an assessment of the trade effects of the subsidy
The aid programme has no effect on trade.G/SCM/N/38/EEC/Add.13
Page 75
AUTONOMOUS COMMUNITY:  MURCIA
Aid to SME Financing
1. Title of the subsidy programme
Aid to SME Financing (No. 264/94)
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Its objective is to promote business investments by SMEs.
4. Authority for the subsidy
Notification of public aid by the Institute of Development of the Region of Murcia, published
in the Official Gazette of the Region of Murcia (BORM) No. 4 of 7 January 1997.
5. Form of the subsidy
Non-repayable subsidy and/or interest rate subsidies on loans.
6. Beneficiaries:  to whom and how the subsidy is provided
The beneficiaries may include enterprises and natural or legal persons that do not come within
sectors subject to Community Directives and that operate within the Region of Murcia (objective
No. 1 region), since the aid for this programme is intended to promote regional development.
This aid is granted subject to the fulfilment by the applicants of their tax and social security
obligations, and the beneficiaries are required to provide documentary proof that the activity being
subsidized has been carried out.
7. Subsidy per unit or amount of the subsidy
In 1997 subsidies amounting to Ptas 2,237 million were paid out under this programme to
963 enterprises.
The maximum intensities are 50 per cent of the equivalent net subsidy, except in the case of
Cartagena where they may reach 60 per cent.
8. Duration of the subsidy
The programme covers the period 1994-1999, remaining in force until 31 December 1999.
9. Statistical data permitting an assessment of the trade effects of the subsidy
The programme has no effect on trade on account of the small amount involved in
comparison with the large number of beneficiaries, since the programme covers 963 enterprises.G/SCM/N/38/EEC/Add.13
Page 76
AUTONOMOUS COMMUNITY:  NAVARRE
1. Aid to Anti-Pollution Investment
1. Title of the subsidy programme
Aid to Anti-Pollution Investment
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To prevent, rectify and control the environmental impact of industrial activity and of livestock
farms.
4. Authority for the subsidy
Autonomous Decree 168/97 of 23 June(Official Gazette of Navarre (BON) of 16 July 1997).
Autonomous Decree 184/97 of 4 July (BON of 28 July 1997)
5. Form of the subsidy
Non-repayable subsidy
6. Beneficiaries:  to whom and how the subsidy is provided
Enterprises, associations, natural persons or institutions that carry out projects or investments
eligible for subsidy.  Payment is made followin g production of proof of the expenditure incurred, of
the proper operation of the installations and various other formal requirements.
7. Subsidy per unit or amount of the subsidy
Amount budgeted:  Ptas 222 million
Amount granted: Ptas 160,906,378
8. Duration of the subsidy
Indefinite
9. Statistical data permitting an assessment of the trade effects of the subsidy, including statistics
of production, consumption, imports and exports of the subsidized products or sector
The programme has no effect on trade on account of its small amount in comparison with the
size of the sector.G/SCM/N/38/EEC/Add.13
Page 77
2. Aid to Technological Research and Development
1. Title of the subsidy programme
Aid to Technological Research and Development
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To improve the competitiveness of enterprises by incorporating technology in their products
and processes.
4. Authority for the programme
Autonomous Decree 2/1982 of 16 September.
5. Form of the subsidy
Interest-free loans to be repaid in seven years with a two-year grace period, not exceeding
50 per cent of the research and development costs.
6. Beneficiaries: to whom and how the subsidy is provided
Industrial enterprises based in Navarre.
7. Subsidy per unit or amount of the subsidy
In 1997, Ptas 796 million was paid out for 56 projects.The average amount per project is therefore Ptas 14.21 million.
8. Duration of the subsidy
Indefinite
9. Statistical data permitting an assessment of the trade effects of the subsidy
Such data is not currently available, since the monitoring of the projects is now at the
technical stage.G/SCM/N/38/EEC/Add.13
Page 78
3. Reorganization and Revival of Enterprises in Crisis
1. Title of the subsidy programme
Reorganization and Revival of Enterprises in Crisis
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Support for enterprises that are facing a crisis situation and are attempting to implement plans
for reorganization and revival that have previously been reviewed and compared.
4. Authority for the subsidy
Autonomous Law 1/1995 of 4 March
5. Form of the subsidy
- Subsidies for reorganization and restructuring;- advances repayable without interest;- subsidized interest rates for loans;
- security for obtaining loans.
6. Beneficiaries: to whom and how the subsidy is provided
Enterprises based in Navarre.
7. Subsidy per unit or amount of the subsidy
Type (number)
1997Annual amount Average amount
Non-repayable subsides (1) 3,090 3,090
Advances repayable without interest
(2)50,000 25,000
Interest rate subsidies (20) 161,658 8,082.9
Security (4) 270,000 67,500
8. Duration of the subsidy
There is no time-limit.
9. Statistical data permitting an assessment of the trade effects of the subsidy
Number of new enterprises benefiting from this aid in 1997: 9 enterprises.G/SCM/N/38/EEC/Add.13
Page 79
4. Investment and Employment Aid.  Intere st Rate Subsidies for Loan Operations
1. Title of the subsidy programme
Investment and Employment Aid.  Interest  Rate Subsidies for Loan Operations.
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To promote the creation of new industries and the modernization of existing ones.
4. Authority for the subsidy
Regulation of 23 June 1982 on short-term measures on industrial policy and the promotion of
investment and employment.
Autonomous Decree of 24 January 1986 regulating interest rate subsidies for loan operations.
5. Form of the subsidy
- Subsidy not exceeding 20 per cent of the investment;
- subsidy of Ptas 500,000 for each permanent job created that involves an increase in
the workforce and Ptas 300,000 for each fixed-term contract, provided that there is no
decrease in the workforce.
6. Beneficiaries: to whom and how the subsidy is provided
Manufacturing industry.  Activities in divisions C and D of the National Classification of
Economic Activities (CNEA 93).  Interest-rate subsidies for industrial SMEs with fewer than250 employees and whose own resources do not exceed Ptas 500 million.
7. Subsidy per unit or amount of the subsidy
Subsidies granted:For investment Ptas 4,678.1 million No. of beneficiaries: 142
For employment Ptas 286.3 million Jobs generated: 572
Interest rate subsidies Ptas 107 million Number of beneficiaries:   77
Jobs created:     1
8. Duration of the subsidy
Our regulations are in accordance with EU directives.
9. Statistical data permitting an assessment of the trade effects of the subsidy
These subsidies are of a general nature for the benefit of manufacturing industry and cover
activities included in divisions C and D of CNAE 93.G/SCM/N/38/EEC/Add.13
Page 80
AUTONOMOUS COMMUNITY:  BASQUE COUNTRY
1. Access to Ownership of Fishing Boats
1. Title of the subsidy programme
Access to Ownership of Fishing Boats
2. Period covered by the notification
1997
3. Purpose of the subsidy
Aid for the purchase of fishing boats in service.
4. Authority for the subsidy
Decree 228/1996 of the Government of the Basque Country of 24 September (BOPV
2 October 1996).
5. Form of the subsidy
Non-repayable subsidy
6. Beneficiaries
Natural persons that are officially registered in the Historic Territories of the Autonomous
Community of the Basque Country.
Legal persons that have their domicile and the management and direction of their business in
Euskadi and over 50 per cent of whose turnover is in the Autonomous Community of the Basque
Country.
7. Annual amount budgeted
Ptas 454,902,536
8. Duration of the subsidy
Maximum period of implementation:  three years
9. Statistical data
In view of the nature of the subsidy it is not possible to assess its effects on trade.G/SCM/N/38/EEC/Add.13
Page 81
2. Programme of Financial Aid to Investment
1. Title of the subsidy programme
Extension of the programme of Fina ncial Aid to Investment (AFI 97)
2. Period covered by the notification
1997
3. Purpose of the subsidy
The purpose the programme is to aid investment by SMEs by giving them access to sources
of finance on acceptable terms in comparison with competitors in the Community and by facilitating
long-term financing at moderate rates of interest.
4. Authority for the subsidy
- Decree 95/1994 of 22 February regulating the programme of financial aid to
investment in the industrial sector.
- Order of 23 February 1994 of the Regional Minister of Industry and Energy
implementing Decree 95/1994 of 22 February regulating the programme of financial
aid to investment in the industrial sector.
- Order of 30 March 1995 of the Regional Minister of Industry, Agriculture and
Fisheries amending the Order implementing Decree 95/1994 of 22 Februaryregulating the programme of financial aid to investment in the industrial sector.
- Decree 161/97 (BOVP No. 133 of 14 July 1997) amending the Decree regulating the
programme of financial aid to investment in the industrial sector.
5. Form of the subsidy
Interest-rate subsidy for loans under the agreement signed with financial entities.
6. To whom and how the subsidy is provided
The subsidy is available to the following:- Industrial SMEs, and SMEs providing technical services to industrial enterprises.The beneficiary must show that its investment project meets the following requirements:
- The project must be technically, economically and financially viable;
- 30 per cent of the investment must be self-financed by the enterprise;- there is a minimum admissible amount of investment of Ptas 10 million.The investment is made by enterprises which employ at least three workers for a minimum of
three years as a result of increasing investment.G/SCM/N/38/EEC/Add.13
Page 82
In order to benefit from this subsidy the beneficiary must show that it has paid its tax and
social security contributions.
It must also provide evidence that the investme nt in the project has been made and that the
financial operation has been carried out according to  the terms laid down in the agreement signed with
the financial entities.
7. Amount of the subsidy
Subsidy allocated:  Ptas 981 millionSubsidy paid:  Ptas 656.5 million
8. Duration of the subsidy
This aid programme remains in effect as long as there are sufficient funds for the subsidies.
9. Statistical data permitting an assessment of the trade effects of the subsidy
The accounts are currently being closed and a CNAES table will be sent subsequently,
showing that the subsidy affects all industrial sect ors and technical services to industrial enterprises.
3. Programme of Support to Research Activities
1. Title of subsidy programme
Programme of Support to Research and Development Activities in the Autonomous
Community of the Basque Country
2. Period covered by the notification
1997-2000
3. Policy objective and purpose of the subsidy
The objective is horizontal with a view to encouraging R&D activities and innovation
applicable to industrial sectors and related services.
4. Authority for the subsidy
Decree 185/1997 of 29 July, which establishes measures to support activities of technological
research and development and innovation in the Autonomous Community of the Basque Country.
5. Form of the subsidy
The aid under this programme is in the form of non-repayable subsidies.
6. Beneficiaries
The subsidies are intended for industrial enterprises and enterprises providing industry-related
services.  Foundations and inter-enterprise groups set up to carry out the activities eligible for
subsidies also qualify.  The subsidy is paid in two instalments:  50 per cent paid immediately uponG/SCM/N/38/EEC/Add.13
Page 83
notification of approval and the remaining 50 per cent once the activity has been completed and
evidence for the completion produced.
7. Total amount
Ptas 3,376 million for the financial year 1997.
8. Duration of the subvention and any other time-limits attached to it
The subsidies are paid on a yearly basis and therefore the activities eligible for subsidies are
financed during each calendar year.
9. Statistical data permitting an assessment of the trade effects of the subsidy
As this programme mainly concerns the industrial sector and related services, no data on its
effects on trade is available.
4. Ekimen programme
1. Title of the subsidy programme
Ekimen Programme of Economic Aid to Investment in Industrial Production that Creates Jobs
2. Period covered by the notification
1996-1998
3. Purpose of the subsidy
The purpose of the Ekimen Programme is to promote and encourage industrial investment
projects to be carried out in the Autonomous Community of the Basque Country that lead to the
creation of a large number of jobs.
4. Authority for the subsidy
Decree 289/1996 of 17 December regulating the Ekimen Programme of economic aid to
investment in production that creates jobs.
5. Form of the subsidy
Non-repayable subsidy and interest-rate subsidy for financial operations.
6. To whom and how the subsidy is provided
This aid is available to industrial mining and/or processing companies or companies
providing technical services to the former, whose in vestment projects receiving aid are situated in the
territory of the Autonomous Community of the Basque Country.
Entities that belong to the institutional administration of the Autonomous Community,
including public companies and subsidiary technological research bodies, are not eligible as
beneficiaries.G/SCM/N/38/EEC/Add.13
Page 84
The subsidy is paid following fulfilment of the requirements laid down in the programme by
the company concerned, including the investment and job creation, by means of the relevant decision
on granting the subsidy.
Projects eligible to receive economic aid are those which have met the following requirements
over a maximum period of three years:
(a) The projects have led to the creation of at least 30 jobs and a minimum eligible
investment of Ptas 360 million;
(b) the companies' own resources, excluding subsidies, must represent at least 30 per cent
of the total net assets.  This requirement must be met and proof provided at the end ofthe second financial year following the co mmencement of the investment project and
in the financial year in which the project is definitively terminated;
(c) the investment and the job creation must be made by a single legal entity and, for
companies that have various production sites, at a single production site, unless it cansatisfactorily be proved that it is a single investment project;
(d) in any event, the projects eligible for ai d must substantiate their technical, economic
and financial viability.
The beneficiary must also prove that it has paid its tax and social security contributions.
7. Amount of the subsidy
Subsidy allocated:  Ptas 6,106 millionSubsidy paid:  Ptas 1,056 million
8. Duration of the subsidy
For the purposes of submitting applications, this aid programme will be in effect during the
period 1996-1998.
As the projects must be implemented within a maximum period of three years from the date
of approval of the aid, the total investment and the payment of the relevant subsidies may be extended
until the financial year 2001.
9. Statistical data permitting an assessment of the trade effects of the subsidy
The programme concerns the promotion of projects to develop processing industries and/or
their related technical services which lead to large-scale job creation and will thus be a substantial
incentive for Basque industrial activities and, consequently, for economic activity in general in theAutonomous Community of the Basque Country.G/SCM/N/38/EEC/Add.13
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AUTONOMOUS COMMUNITY:  LA RIOJA
1. Promotion of nvestment and modernization by SMES in areas of industrial decline
1. Title of the subsidy programme
Promotion of Investment and Modernization by SMEs in Areas of Industrial Decline
2. Period covered by the notification
1997
3. Objective or purpose of the subsidy
To promote the development of areas in industr ial decline, as determined in the Community
Regional Policy.
4. Authority for the subsidy
Regulatory Order:  Aid to the industrial, trade and service sectors in areas in industrial
decline.  Order of 6 May 1994 as amended by the Order of 20 May 1996.
5. Form of the subsidy
Subsidy for investment
6. Beneficiaries
The subsidy is provided for specific business investment projects.
7. Amount of the subsidy
The total annual amount is Ptas 242,567,460.
8. Duration of the subsidy
The Order regulating the aid is for an indefinite period, but always applies in the context of
the La Rioja Operative Programme for Objective No. 2 (1997-1999).
9. Statistical data permitting an assessment of the trade effects of the subsidy
Number of projects:  106.  Investment generated:  Ptas 3,753,176,446.  Jobs:  296.G/SCM/N/38/EEC/Add.13
Page 86
2. Promotion of investment and modernization by SMES in rural areas
1. Title of the subsidy programme
Promotion of Investment and Mode rnization by SMEs in Rural Areas
2. Period covered by the notification
1997
3. Objective or purpose of the subsidy
To promote development in rural areas in La Rioja, as determined in the Community
Regional Policy.
4. Authority for the subsidy
Regulatory Order:  Aid to the industrial, trade and service sectors in rural areas.  Date of
publication in the Official Gazette of La Rioja:  14 May 1994.
5. Form of the subsidy
Subsidy for investment
6. Beneficiaries
The subsidy is provided for specific business investment projects.
7. Amount of the subsidy
The total annual amount is Ptas 415,189,515.
8. Duration of the subsidy
The Order regulating the aid is for an indefinite period, but always applies in the context of
the La Rioja Operative Programme for Objective No. 5(b) (1994-1999).
9. Statistical data permitting an assessment of the trade effects of the subsidy
Number of projects:  214.  Investment generated:  Ptas 9,053 million.  Jobs:  371.G/SCM/N/38/EEC/Add.13
Page 87
AUTONOMOUS COMMUNITY:  VALENCIA
Aid to for España S.A.
1. Title of the subsidy programme
Aid to Ford España S.A. (ZETEC-SE motor), projects 11 to 13
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Projects 11 and 11 bis:  energy savings and environmental protection;
Project 12;  research and development, innovation and regional development;
Project 13:  training of staff and maintaining jobs, regional development (improving the
professional level of workers in the region).
4. Background and authority for the subsidy
Projects 11 and 11 bis:  Law 82/1980 of 30 December on energy savings and development
orders.
Projects 12 and 13:  Public Finance Law of the Autonomous Community of Valencia
(Legislative Decree of the Valencian Government of 26 June 1991).
5. Form of the subsidy
Non-repayable subsidy
6. Beneficiaries
The beneficiary is Ford España S.A.
The subsidy is paid after the investment has been made and/or the activities eligible for
subsidies have been carried out, according to the budget available.
7. Total amount or annual amount budgeted
This is an ad hoc subsidy, so there is no subsidy per unit.Project 11 "Improvements in energy efficiency through energy savings in the factory
and installations and the construction of a new co-generating station".
The enterprise provided proof of an investment of Ptas 1,708,131,905, and was thus eligible
for a subsidy of Ptas 94,288,830, which was disbursed in its entirety from the 1997 allocation.
Project 11 bis "Improvements in energy efficiency through energy savings in buildings and
machinery".G/SCM/N/38/EEC/Add.13
Page 88
The enterprise provided proof of an investment of Ptas 624,050,000 and was thus eligible for
a subsidy of Ptas 76,400,000, which was disbursed in its entirety from the 1997 allocation.
Project 12 "Innovative investments for the installation of the new engine -
manufacturing plant".
The enterprise provided proof of expenditure on innovative investments, product R&D and
process R&D amounting to Ptas 24,541,300,000 and was thus eligible for a subsidy of
Ptas 3,148,030,000 of which only Ptas 915,343,000 was disbursed from the 1997 allocation.
Project 13 "Project to develop continuing vocational training activities for FORD
workers".
Under Project 13:  Ptas 63,464,510 to finance training activities in 1996, whose total cost
amounted to Ptas 126,929,020;  and Ptas 17,937,787 to finance training activities in 1997, whose total
cost amounted to Ptas 35,875,574.
8. Duration of the subsidy (inception/commencement)
1996-2003
9. Statistical data permitting an assessment of the trade effects of the subsidy
The purpose of the subsidy paid to date has been to improve the professional level of workers
in the region by providing support for the professional training of workers at Ford España S.A. and
consequently it is not deemed to have any effect on international trade.
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