G/SCM/N/95/EEC/Add.11
Page 1

World Trade
Organization
G/SCM/N/95/EEC/Add.11
15 December 2003
(03-6594)
Committee on Subsidies
and Countervailing Measures / Original: English

SUBSIDIES

New and Full Notification 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 theNetherlands.

THE NETHERLANDS

Table of contents

Page

I.T.O.K. (DECISION TECHNICAL DEVELOPMENT LOANS)...... 4

II.T.O.P. (DECISION TECHNICAL DEVELOPMENT PROJECTS)...... 4

III.E.E.T. (SUBSIDY SCHEME ECONOMY, ECOLOGY AND TECHNOLOGY...... 5

IV.TEST PROGRAMME REFERENCE PROJECTS ENVIRONMENTAL

TECHNOLOGY...... 6

V.MPO (CREDIT SCHEME FOR ENVIRONMENT-ORIENTED PRODUCT

DEVELOPMENT)...... 7

VI.SUBSIDIEREGELING HAALBAARHEIDSPROJECTEN MKB (SUBSIDY

SCHEME FEASIBILITY PROJECTS FOR SMALL AND MEDIUM SIZED

ENTERPRISES...... 8

VII.TS (TECHNOLOGICAL COOPERATION SCHEME)...... 8

VIII.BESLUIT SUBSIDIES ZEESCHEEPSNIEUWBOUW 1994 (DECISION

ORDER-RELATED SUBSIDIES FOR SHIPBUILDING)...... 9

IX.CVO (CIVIL AIRCRAFT DEVELOPMENT SUPPORT SCHEME)...... 10

X.EMA (SCHEME FOR SURVEYING ENERGY EFFICIENCY AND

ENVIRONMENTAL POLLUTION IN ORDER TO ESTABLISH CLEANER

PRODUCTION)...... 11

XI.PHILIPS-CLUSTERPROJECTEN (PHILIPS CLUSTER PROJECTS)...... 12

XII.EUREKA PROJECT ITEA...... 13

XIII.EUREKA PROGRAMME MEDEA + (MICRO-ELECTRONICS

DEVELOPMENT FOR EUROPEAN APPLICATIONS)...... 13

XIV.MEDEA 1 PROJECT T401 "FLUOR"...... 14

XV.MEDEA 1 PROJECT T403 "EXTATIC"...... 15

XVI.ACT ON TAXES WITH AN ENVIRONMENTAL BASE – TAX ON

GROUNDWATER...... 16

XVII.REGULATORY ENERGY TAX...... 17

XVIII.REGULATION TO STIMULATE THE USE OF MODES OF URBAN

TRANSPORT, BOTH PASSENGERS AND GOODS, WHICH ARE LESS

HARMFUL TO THE ENVIRONMENT (ECONOMICAL, SILENT AND

CLEAN TECHNIQUES...... 17

XIX.BSE (DECISION ON SUBSIDIES TO ENERGY PROGRAMMES)...... 18

XX.EINP (ENERGY EQUIPMENT IN NON PROFIT AND OTHER SECTORS...... 19

XXI.SUBSIDY SCHEME FOR ENVIRONMENTAL TECHNOLOGY...... 20

XXII.CO2 REDUCTION SCHEME...... 20

XXIII.SUBSIDY REGULATION FOR REGIONAL INVESTMENT PROJECTS 2000...21

XXIV.THE RESEARCH AND DEVELOPMENT PROGRAMME ON SOIL

REMEDIATION, SOIL PROTECTION AND SOIL QUALITY. THE

FOUNDATION ON KNOWLEDGE OF DEVELOPMENT AND TRANSFER

OF KNOWLEDGE IN THE FIELD OF THE SOIL...... 22

XXV.THE REGULATION ON ENVIRONMENTAL INVESTMENT

DEDUCTION 2001 AND 2002...... 23

XXVI.NIDO (NATIONAL INITIATIVE FOR SUSTAINABLE DEVELOPMENT)...... 23

Please note 1 EURO = 2,20371 NLG (DUTCH GUILDERS)

I.T.O.K. (Decision Technical Development Loans)

(a)Title

Besluit Technische Ontwikkelingskredieten (TOK)

(Decision Technical Development Loans)

(b)Form of the subsidy

Subsidy is given as a loan that usually covers 40 per cent of the total cost of the project. Theinterest rate is based on market interest rates, and for 2001 it was fixed on 5.70 per cent. Repayment is calculated as a fixed percentage of any sales of products related to the R&D-project.

(c)Subsidy

Budget 2001: € 15.9 mln (NLG 35.1 mln)

Budget 2002: € 9 mln.

(d)Policy goals

Goal of the scheme is to facilitate projects of product development with high technical risk. Because of these risks, firms usually have difficulty in financing the project by own means.

(e)Duration of the subsidy

The scheme ended 1 May 2001. This programme was replaced by Decision Technical Development Projects (TOP).

(f)Consequences for international trade

The subsidy-scheme has no direct consequences for international trade.

(g)Legal basis

Decision of 2 June 1994, published in Staatscourant 1994, 435, and executive decision of 19December 1996, Staatscourant 1996, 248.

II.T.O.P. (Decision Technical Development Projects)

(a) Title

Besluit subsidies Technisch Ontwikkelingsprojecten (TOP)

(Decision Technical Development Projects)

(b) Form of subsidy

Subsidy is granted as a loan, that usually covers 35 per cent or 25 per cent of the costs of the project. Repayment is calculated as a percentage of any sales of the product related to the R&D-project.

(c)Subsidy

Budget 2001 TOK: € 10,25 mln (NLG 22.6 mln).

Budget 2002 TOP: € 27 mln.

In 2002 a total amount of € 22.528.504 was drawn on the facility budget.

Payments on the 2002 cash budget amounted to € 3.944.117

(d)Policy goals

Goal of the scheme is to facilitate projects of product development with high technical risk. Because of these risks, firms usually find it difficult to finance the project by own means.

(e)Duration of the subsidy

The scheme started at 5 May 2001.

(f)Consequences for international trade

The subsidy-scheme has no direct consequences for international trade.

(g)Legal basis

Decision of 20 April 2001, Staatscourant 2001,203; and executive decision of April 25, 2001, Staatscourant 2001, 85.

III.E.E.T. (Subsidy scheme Economy, Ecology and Technology)

(a) Title

Subsidieregeling Economie, Ecologie en Technologie

(subsidy scheme Economy, Ecology and Technology)

(b) Form of the Subsidy

Grant

The aid intensity is:

62.5 per cent for fundamental research

40 per cent for industrial research

25 per cent for pre-competitive development

(c)Form of subsidy

Budget 2001 : € 49.9 mln (NLG 110 mln).

Budget 2002: € 33.134.450,54 (7th of September 2001/Nr. WJZ 01046122).

(d) Policy goals

Goal of the subsidy is to achieve scientific and technological innovations, which will lead to breakthroughs in a wide range of areas. Therefore strategic co-operation in R&D between companies, and between companies and research institutes/universities is stimulated. The programme covers five themes: sustainable industrial production processes, ecodesign, transport, renewable raw materials and renewable energy.

(e) Duration

The scheme has an unlimited duration.

(f) Consequences for international trade

The subsidy has no direct effects on trade flows. Consequently, no statistics can be provided.

(g)Legal basis

Decision of 18 December 1996, Staatscourant 1997 No. 13.

IV.test programme reference projects environmental technology

(a) Title

Subsidieregeling referentieprojecten milieutechnologie

(Test Programme reference projects environmental technology)

(b)Form of the subsidy

A subsidy is provided for the introduction and spreading of new environmental technologies, to small and medium-sized enterprises.

The subsidy amounts to 25 per cent in case of a first application of the technology, and to 50per cent in the case of measurement-programmes.

(c)Cost of the subsidy

Each project for first applications can be awarded € 226.891 at the most. The budget for 2001 and for 2002 was € 1.36 mln.

(d) Policy goals

Goal is to encourage small and medium-sized enterprises to apply new environmental technologies that contribute to the reduction of environmental cost of production.

(e)Duration of the subsidy

The scheme will be extended for 2003. After 31 December 2002 there was no budget any more for this programme so that new requests cannot be awarded. The programme however formally still exists.

(f) Consequences for international trade

The subsidy-regulation has no consequences for international trade, so no statistics can be given.

(g)Legal basis

Decision 18 May 1998, Staatscourant 1998 no. 95,

Decision 16 December 1998, Staatscourant no. 243.

V.MPO (credit scheme for environment-oriented product development)

(a) Title

Kredietregeling milieugerichte product ontwikkeling

(Credit scheme for environment-oriented product development)

(b)Form of the subsidy

Subsidy is given as a loan, that covers 40 per cent of the total cost of the project at maximum. Credit is only available for small and medium-sized companies (according to the EC-definition). The maximum loan is fixed at € 226.890.

(c)Cost of the subsidy

Budget 2001: € 907.560,-. Average loan per company was € 119.489.

(d)Policy goals

Goal of the scheme is to facilitate projects of product development with technical risk, in order to achieve considerable reduction in the environmental impact and to stimulate the use of such technology in product development.

(e)Duration of the subsidy

The scheme ended at the end of 2000 (8675 / 21.10.1998).

(f)Consequences for international trade

The subsidy has no direct effects on trade flows. Consequently, no statistics can be provided.

(g)Legal basis

Decision of 21 June 1996, Staatscourant 1996, 117. Revised on 13 March 1997, Staatscourant 1997, 52.

VI.Subsidieregeling haalbaarheidsprojecten MKB (subsidy scheme feasibility projects for small and medium sized enterprises)

(a)Title

Subsidieregeling haalbaarheidsprojecten MKB

(subsidy scheme feasibility projects for small and medium sized enterprises)

(b) Form of the subsidy

Grant: 50 per cent of the project costs with a maximum of NLG 25,000. Only firms with 250employees or less can apply for the subsidy.

(c)Cost of the subsidy

In 2001 € 3.403.351 (NLG 7.5 mln) was available. The average per project is about € 9.983 with a maximum of € 11.345.

(d)Policy goals

Goal of the subsidy is to encourage SMEs to use and implement new technologies.

(e) Duration

1 May 2001

(f)Consequences for international trade

No effects on trade.

(g)Legal basis

Decision of 21 December 1995, Staatscourant 1995, 248, and 23 December 1996, Staatscourant 1996, 248 and Staatscourant March 1999, 65.

VII.TS (Technological Cooperation Scheme)

(a)Title

Technological Cooperation Scheme

There are five tenders under the TS:

- International Cooperation (in 2000 this was BIT);

- International Cooperation with emerging markets (in 2000 this was BIT);

- Maritme Cooperation (in 2000 this was SMO);

- ICT-breakthrough projects (in 2000 this was BTS);

- General Cooperation (in 2000 this was BTS).

(b)Form of the subsidy

Grant

(c)Subsidy

2001: Total budget was € 76.300.300

International Cooperation: Eureka-projects:€ 6.806.703

International Cooperation with emerging markets€ 2.268.901

Maritime Cooperation € 1.361.341

ICT-Breakthrough projects € 2.949.571

General Cooperation € 19.285.659

2002: Total budget € 91.500.000 (No detailed figures yet available)

(d)Policy goals

Goal is to encourage firms to realise R&D-projects with partners.

(e)Duration

Unlimited

(f)Consequences for international trade

No effects on trade.

(g)Legal basis

Decision of 17 May 2001, published in Staatsblad 228, 2001.

Executive Decision of 17 May 2001, published in the Staatscourant 95, 2001.

VIII.Besluit subsidies zeescheepsnieuwbouw 1994 (Decision order-related subsidies for shipbuilding)

(a) Title

Besluit subsidies zeescheepsnieuwbouw 1994 (Decision order-related subsidies for the shipbuilding industry) and the Uitvoeringsregeling Besluit subsidies zeescheepsnieuwbouw 1999.

(b)Form of the subsidy

The aid scheme is related to the EC regulations Nr. 1540/98 for Shipbuilding of the EC. Subsidy is given to Dutch shipyards as a grant related to contracts of seagoing civil merchant ships.

(c)Subsidy

In 2001, an additional budget of € 31.764.651 (NLG 70 mln.) for applications already made in 2000.

(d)Policy goals

Reduce the effects of competition distortion of other subsidies provided by other shipbuilding countries.

(e)Duration of the subsidy:

The scheme will be extended for 2003. In 2001 there was no budget any more for this programme. The programme however formally still exists.

(f)Consequences for international trade

Statistical material can be found in several studies from the OECD, EC etc.

(g)Legal basis

Decision of 7 June 1994, published in the Staatsblad 1994, number 437 and the decision of 30June 1999 and publication of the uitvoeringsregeling BSZ 1999 in the Staatscourant.

IX.CVO (CIVIL AIRCRAFT DEVELOPMENT SUPPORT SCEME)

(a)Title

Subsidieregeling civiele vliegtuigontwikkeling (CVO-regeling, Civil Aircraft Development support scheme)

(b)Form of the subsidy

Grant for industrial research

Repayable credit for pre-competitive development

(c)Subsidy

Budget 2001: € 52.2 mln (NLG 115,-).

Budget 2002: € 20 mln.

(d)Policy-goals

The general objective of CVO is to get the Netherlands Aerospace sector involved in R&D programmes related to aircraft development.

(e)Duration

The duration of the scheme is indefinite. Each year a separate budget is published.

(f)Consequences for international trade

No consequences for trade.

(g)Legal basis

Decision of 28 December, reported in the Staatscourant 2000, no. 206, 18 May 2000.

X.EMA (Scheme for surveying energy efficiency and environmental pollution in order to establish cleaner production)

(a)Title

Subsidieregeling energie-efficiency- en milieuadviezen Schoner Produceren (EMA), (Scheme for surveying energy efficiency and environmental pollution in order to establish cleaner production)

(a)Form of the Subsidy

A subsidy is provided for surveying the energy-efficiency or the environmental pollution of buildings and/or industrial processes, to small and medium-sized enterprises and non-profit organisations.

The subsidy amounts to 50 per cent of total costs.

(b)Subsidy

Each project for one of the surveys can be awarded € 3.403,35 at the most or in case of a combination of the two surveys in one € 5.672,25 at the most. The budget for 2001 was zero, although one new project for the amount of € 5.672,25 has been awarded as the result of a legal procedure about the outcome of the tender in 2000. For 2002 the budget was zero.

(c)Policy Goals

Goal is to encourage small and medium-sized enterprises and non-profit organisations to list which improvements (against what costs) are possible on energy efficiency and/or environment of buildings, products, installations and processes or parts of that.

(d)Duration of the Subsidy

The subsidy will end in 2003.

(e)Consequences

The scheme has no consequences for international trade.

(f)Legal Basis

Decision 10 September 1998, Staatscourant 1998 no. 173.

Decision 11 December 1998, Staatscourant 1998 no. 240.

XI.Philips-Clusterprojecten (Philips Cluster projects)

(a)Title

“Philips Clusterprojecten ” (Philips Cluster projects)

(b) Form of the subsidy

Subsidy is provided as a grant.

(c)Subsidy

The Dutch government committed € 485.880 for 10 projects. The subsidy is directly linked to the R&D-activities that are outsourced at universities.

(d)Policy-goals

Goal of the scheme is:

(i)to encourage lasting co-operation between Philips and the Dutch scientific infrastructure (universities in particular);

(ii)to reinforce the stock of scientific knowledge in areas of fundamental science and industrial R&D that are relevant for Philips.

The areas concerned are ceramics and glass, functional polymeres, very large scale integration design-technology, physics of thin inorganic films, analytical instruments and methods, quantitative analysis of X-rays and magnetic resonance cardiac images, micro-mechanics, technology-generations, information technology applied in consumer systems. The clusterproject Ecodesign is included as well.

The activities of the scientific infrastructure (universities in particular) are being paid by Philips. The activities at the universities are co-ordinated by Philips with their own research activities.

The scheme is exclusively meant to support the outsourcing of fundamental and industrial research at universities.

(e) Duration

The projects are carried out during the period 1 January 2001 to 30 June 2002.

(f)Consequences for International Trade

No effects on trade.

(g)Legal basis

Framework Law concerning financial assistance (Kaderwet verstrekking Financiële Middelen).

XII.Eureka Project ITEA

(a)Title

“Eureka Project ITEA (Information Technology for European Advancement)

(b)Form of the subsidy

Subsidy is provided as a grant to Nederlandse Philipsbedrijven B.V.. The subsidy does not exceed 50 per cent of the cost of the project.

(c)Subsidy

€ 9.983.165 is available.

(d)Policy-goals

Goal of the subsidy is to reinforce the stock of scientific knowledge in industrial R&D. The areas concerned are new technologies for embedded software engeneering. ITEA covers the following competences::

1.Extended multimedia

2. Communications;

3.Distributed Information and Services;

4.Content Processing;

5.User Interfaces;

6. Complex System Engineering

(e)Duration

The project is foreseen to run from 1 July 1999 until 1 July 2007.

(f)Consequences for International Trade

The subsidy is awarded to industrial base R&D and pre-competitive development, which has no direct effects on trade flows. Consequently, no statistics can be provided.

(g) Legal basis

Framework Law concerning financial assistance (Kaderwet verstrekking financiële middelen).

XIII.Eureka Programme MEDEA+ (Micro-Electronics Development for European Applications)

(a)Title

“Eureka programme MEDEA+(E!2365) (Micro-Electronics Development for European Applications)”. MEDEA+ is the successor of the Eureka project MEDEA that terminated in 2000.

(b)Form of the subsidy

Subsidy is provided as a grant that does not exceed 50 per cent of the cost of the projects.

(c)Subsidy

For the period 1.1.2001 until 31.12.2002 € 57,9 mln. was available (€ 24,3 mln in 2001 and €33,6 mln in 2002).

(d)Policy-goals

Goal of the subsidy is to reinforce the stock of scientific knowledge in industrial R&D in the area of microelectronics. To achieve this, research is being done in the following areas: Silicon Application Platforms, comprising the development of architecture and standards, Intellectual Property (IP) libraries and tools, hardware-related software design, hardware-software co-design methodologies and demonstrators on silicon of their functionality. These platforms address the main applications markets of the e-economy: high-speed communication systems; integrated information, communication and entertainment terminals for the internet society, smart card systems for secure internet applications and automotive electronics for in-car communication, personal safety and environment protection. Enabling Technologies for these applications, i.e. new equipment and materials for process integration, computer aided design (CAD) tools and methodologies, innovative process steps for the manufacturing of integrated circuits, testing and packaging tools and methodologies.

(e)Duration

The programme is carried out during the period 1.1.2001 to 31.12.2008. The second phase of the programme will start 1.1.2005. This phase will be confirmed by the participating countries on the basis of a mid term assessment to be carried out in 2003

(f)Consequences for International Trade

No effects on trade.

(g)Legal basis

Framework Law concerning financial assistance (Kaderwet verstrekking financiële middelen).

XIV.MEDEA+ Project T401 "FLUOR"

(a)Title

MEDEA+ T401 "Front Line Lithography Using Optical Refraction" (FLUOR)

(b)Form of the subsidy

Subsidy is provided as a grant to ASM Lithography, Veldhoven, that does not exceed 50 per cent of the cost of ASML's share in this international project

(c)Subsidy

For the year 2001 a maximum budget for funding of € 13,6 million was reserved for two lithography projects T401 "FLUOR" and T403 "EXTATIC". Both projects were notified to and approved by the European Commission.

(d)Policy-goals

The project is designed to conduct research into a full solution for 157nm lithography, which involves a photolithographic "tool", "reticles", "resist"and a "process", together with the associated special materials. The application of 157 nm technology can further extend the life of optical lithography, through the application of F2 lasers, new mask technology and other high resolution techniques. Resolutions beyond 100nm to 70nm will come within reach thanks to this technology.

(f)Duration

The project has a foreseen duration of 4 years (2001-2004).

(g)Consequence for International Trade

The subsidy is awarded to industrial base R&D, which has no direct effects on trade flows.

(h)Legal basis

Framework Law concerning financial assistance (Kaderwet verstrekking financiële middelen).

XV.MEDEA+ Project T403 "EXTATIC"

(a)Title

MEDEA+ T403 "Extreme UV Alpha Tool Integration consortium" (EXTATIC)

(b)Form of the subsidy

Subsidy is provided as a grant to ASM Lithography, Veldhoven, that does not exceed 50 per cent of the cost of ASML's share in this international project.

(c)Subsidy

For the year 2001 a maximum budget for funding of € 13,6 million was reserved for two lithography projects T401 "FLUOR" and T403 "EXTATIC". Both projects were notified to and approved by the European Commission.

(d)Policy-goals

The project is designed to conduct research into the system-based aspects and into the basic optical systems used for "extreme ultraviolet" (EUV) light with a wavelength of 13 nm for lithographic applications. In global research into the "Next Generation Lithography" (NGL) EUV is regarded as a promising technology. The project is part of a global cluster of EUV projects, in which aspects such as "mask", "source" and "process" are involved. The project will bring together companies from Germany, France, Belgium and the Netherlands.