WORLD TRADE
ORGANIZATIONG/SCM/N/48/EEC/Add.7
G/SCM/N/60/EEC/Add.7
20 November 2000
(00-4933)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Updating 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
programme of Greece .G/SCM/N/48/EEC/Add.7
G/SCM/N/60/EEC/Add.7
Page 2
GREECE
1. Title
Law 2601/98 (published in the Official Gazette of the Hellenic Republic of 15 April 1998) on
subsidies to private investment for the economic and regional development of the state.  Law 2601/98
replaces Law 1892/90 as amended and supplemented by Law 2234/94.
2. Period covered
Law 2601/98 entered into force on the day of its publication in the Official Gazette
(15 April 1998).
3. Objective/Policy
Article 1 of Law 2601/98 sets out the objective of the law as follows:
• To contribute to regional development
• To contribute to job creation
• To increase competitiveness of business
• To contribute to the restructuring of production sectors
• To contribute to the exploitation of business opportunities in Greece and abroad
• To contribute to the protection of the environment and the savings of energy
4. Authority
As a general rule the authority responsible for administering the Law is the Central Service of
the Ministry of National Economy.  However, applications for aid investments up to Dr 700 million
are administered locally by the Private Investment Services of the Ministry’s Regional Directorates.In specific cases the Ministry of Development or other services may be involved.
5. Form
Aid is granted in the following forms:
(a) grants
(b) interest contributions
(c) leasing payment contributions
(d) tax exemptions
6. Procedure
Companies form all economic sectors can avail of aid under Law 2601/98 (including physical
persons engaged in business activities).  With regard to the type of aid available, however, Law
2601/98 distinguishes between two types of beneficiar ies (new and old) depending on the time of their
establishment.  Old beneficiaries (i.e. those established at least five years before the application foraid is made) can avail only of aid in the form of interest contributions and tax exemptions.  New
beneficiaries (i.e. those established within five years of the application for aid) can avail of all of the
above mentioned forms of aid (for the types of aid see answer to previous question).G/SCM/N/48/EEC/Add.7
G/SCM/N/60/EEC/Add.7
Page 3
The aid intensity varies depending on the region of the investment.  For the purposes of Law
2601/98, Greece is divided into four regions on the basis of their level of
development/unemployment/geographical position.  Region ‘A’ covers the departments of Attica andThessaloniki; investments in these areas are not normally eligible for aid under Law 2601/98 (with
certain exceptions).  In the other region aid intensity varies as follows:
• Region B: 15% (40 per cent for tax exemption)
• Region C: 30% (70 per cent for tax exemption)
• Region D: 40% (100 per cent for tax exemption)
• 
Aid is granted in instalments in proportion to the degree of realisation of the investment in
three distinct phases.  Firstly, 60 per cent of the aid is granted during realisation of the investment intwo separate instalments.  Secondly, 20 per cent of the aid is granted after the conclusion of the
investment, and thirdly, the last 20 per cent is granted after the investment had been put into
operation.
7. Amount
The total amount of subsidies authorised fo r 1998, totalled Dr 19 ,882.9 billion, and for 1999,
Dr 68,415.8 billion.
8. Duration
There is no time limit attached to the application of Law 2601/98.
9. Statistics
The amount of Dr 19,882.9 billion for 1998 is broken down according to sector of economic
activity, as follows:
Primary Dr 399.8 million
Secondary Dr 13,517.3 billionTourism Dr 5,173.8 billion
Services Dr 792.0 million
The amount of 68,415.8 billion drachmas for 1999 is analysed as follows:
Primary Dr 808.0 million
Secondary Dr 49,996.2 billion
Tourism Dr 11,836.3 billion
Services Dr 5,773.5 billion
__________