SUBSIDIES
NEW AND FULL NOTIFICATION
PURSUANT TO ARTICLE XVI:1
OF THE
GATT 1994 AND ARTICLE 25.1 OF THE AGREEMENT
ON SUBSIDIES AND COUNTERVAILING MEASURES
Albania
The following communication,
dated and received on 5 August 2024, is being circulated at the request of the
delegation of Albania.
_______________
In
accordance with Article 25.1 of the Agreement on Subsidies and Countervailing
Measures and under Article XVI of the GATT 1994, the Government of Albania is
notifying to the Committee on Subsidies and Countervailing Measures, the scheme
of subsidies programs as follows:
I) State
aid commission decision no. 112, date 17/11.2023: "Authorization of state
aid "Young men and young women towards a profession". 2
II) State aid commission decision no. 113, date
11/12.2023: "For a change in the decision of the state aid commission no.
99, date 16.10.2020 "Authorization of state aid "Financial support
(grant) for new "green" business, which are based on a ECO-FRIENDLY
model, or existing businesses which try to become a "GREEN"
BUSINESS, INTRODUCING GO-GREEN ELEMENTS IN THEM", changed". 3
III) State aid commission decision no. 114, date
12/12/2023 "Authorization of state aid "Eco-innovative
businesses". 4
IV) "On defining the conditions and procedures
for the reimbursement of fuel excise, consumed in heating greenhouses for
industrial and agro industrial productions manufacturing, used for
technological needs of production". 5
1._
Title of the subsidy programme
Authorization
of state aid "young men and young women towards a profession".
2._
Period covered by the notification
2023-2024.
3._
Policy objective and/or purpose of the subsidy
Facilitating the employment of
newly graduated young men and women for the studied professions through
cooperation with private entities.
4._
Background and authority for the subsidy
Municipality
of Tirana.
State Aid
Commission.
Ministry
of Finance and Economy.
The grantor and the responsible authority is the
Municipality of Tirana.
·_
Article 20 of the law No.
9374, dated 21.04.2005 "On state aid"
·_
Article 4, point 1 of the
law No. 9374, dated 21.04.2005 "On state aid", amended
·_
Article 71 "Competition
and other economic provisions", of the Stabilization and Association
Agreement between the European Communities and their Member States and the
Republic of Albania
·_
Chapter II of the Decision of the Council of Ministers
No. 605, dated 31.08.2016 "For the determination of the maximum value, the
conditions and the procedure for granting "De minimis" aid, the
maximum allowed value of the aid, as well as the conditions for the
authorization of the de-minimis
aid are determined as follows:
Aid is allowed if all the
following conditions are met simultaneously:
a)_
the total value of the aid
given to a single enterprise does not exceed ALL 14,000,000 (fourteen
million), for a financial period of three years, calculated in accordance with
the conditions and principles set forth in Chapter 3 of this decision;
b)_
the aid is transparent, if
the gross equivalent of the grant (EBG) can be accurately calculated before
granting the aid, without the need to carry out a risk assessment for the
competition, in accordance with the requirements and principles set forth in Chapter
4 of this decision.
·_
Law No. 9374, dated
21.04.2005 "On state aid", amended and VKM No. 605/2016, "De
minimis" aid is allowed, if the following conditions are met:
1._ The total value of the aid given to an enterprise does not exceed ALL 14,000,000
(fourteen million), for a financial period of three years. This condition is
fulfilled by the fact that the state aid for an enterprise is in the value of
the minimum gross salary;
2._ The aid must be granted for a financial period of three years. The
duration of the entire scheme, which has been considered, is 2 years,
fulfilling this legal condition;
3._
Aid is transparent. In this
case, the aid is given in the form of a grant.
5._
Form of the subsidy
Minimum
wage, Social and health insurance.
6._
To whom and how the subsidy is provided
Young men and women up to 29 years old, residents of the Municipality of
Tirana, who have less than 12 months of university studies at home or abroad
with high results and are unemployed.
7._
Subsidy per unit, or in cases where this is not possible, the total amount
or the annual amount budgeted for that subsidy
Value
ALL 12,000,000.
8._
Duration of the subsidy
2023-2024.
9._
Statistical data
permitting an assessment of the trade effects of the subsidy
Not
available.
II) State aid commission decision no. 113,
date 11/12.2023: "For a
change in the decision of the state aid commission no. 99, date 16.10.2020
"Authorization of state aid "Financial support (grant) for new
"green" business, which are based on a ECO-FRIENDLY model, or
existing businesses which try to become a "GREEN" BUSINESS,
INTRODUCING GO-GREEN ELEMENTS IN THEM", changed".
1._
Title of the subsidy programme
Authorization of state aid "Financial support
(Grant)' for new 'green' businesses, which are based on an eco-friendly model,
or existing businesses, which attempt to transform into 'green' businesses,
introducing Go Green elements".
2._
Period covered by the notification
2023-2025.
3._
Policy objective and/or purpose of the subsidy
The aid plan aims to support new enterprises that aspire
to create green businesses and existing enterprises that apply the principles
of green economy in the production of products and consumption of raw
materials.
4._
Background and authority for the subsidy
The grantor of the aid and the authority responsible for
the implementation of the measure is the Municipality of Tirana.
·_
Legal basis for the notification of aid: Decision of
the Tirana Municipal Council No. 126, dated 23.12.2022 "On the approval of
the mid-term budget program 2023-2025 and the details of the budget of the
Municipality of Tirana for the year 2023"
·_
Article 11, of VKM No. 817, dated 28.12.2005 "On
the approval of the regulation "On procedures and form of
notification"
·_
Articles 17, 22, and 31 of Law No. 9374, dated
21.04.2005 "On state aid", amended
·_
Amendment of point 4, of Chapter II "Description
of the measure", of the decision of KNSH No. 99, dated 16.10.2020
"Authorization of state aid"
5._
Form of the subsidy
Direct state budget grants.
6._
To whom and how the subsidy is provided
Beneficiaries are new
entrepreneurs who aspire to create green businesses and existing enterprises
that apply the principles of the green economy in the production of products
and consumption of raw materials.
7._
Subsidy per unit, or in cases where this is not possible, the total amount
or the annual amount budgeted for that subsidy
Based on Article
11, VKM No. 817, dated 28.12.2005 "For the approval of the regulation
"On the procedures and form of notification", the change of the
existing scheme is notified according to the simplified notification form, when
the notified scheme foresees the increase of the budget of an approved scheme
by more than 20%. The scheme announced for 2024 and 2025 is budgeted in the
amount of ALL 18
million per year, with an increase of 50% of the aid authorized by the decision
of the National Council of Ministers No. 99, dated 16.10.2020
"Authorization of state aid "Financial support (grant) for new
"green" businesses, which are based on an eco-friendly model, or
existing businesses which tend to become "green" businesses
introducing go-green elements into them", amended, in the amount of ALL 12 million per year.
8._
Duration of the subsidy
2020-2025.
9._
Statistical data
permitting an assessment of the trade effects of the subsidy
Not
available.
1._
Title of the subsidy programme
Authorization of state aid "Eco-innovative businesses".
2._
Period covered by the notification
2023-2024.
3._
Policy objective and/or purpose of the subsidy
Promoting
a sustainable model of economic development, friendly to the environment, to
give the processes, products and services of NMVs an added value in the market,
as well as building the capacities of young people with the necessary skills
for an economy green.
4._
Background and authority for the subsidy
The
grantor of the aid and the authority responsible for the implementation of the
measure is the Municipality of Shkodër.
·_
Article
20 of the law No. 9374, dated 21.04.2005 "On state aid"
·_
Article
4, point 1 of the law No. 9374, dated 21.04.2005 "On state aid",
amended
·_
Chapter
II of the Decision of the Council of Ministers No. 605, dated 31.08.2016
"For the determination of the maximum value, the conditions and the
procedure for granting "De minimis" aid, the maximum allowed value of
the aid, as well as the conditions for the authorization of the de-minimis aid
are determined as follows:
Aid is allowed if all the
following conditions are met simultaneously:
a)_ the total value of the aid given to a single
enterprise does not exceed ALL 14,000,000 (fourteen million), for a financial period of three years,
calculated in accordance with the conditions and principles set forth in
Chapter 3 of this decision;
b)_ the aid is transparent, if the gross
equivalent of the grant (EBG) can be accurately calculated before granting the
aid, without the need to carry out a risk assessment for the competition, in
accordance with the requirements and principles set forth in Chapter 4 of this
decision.
·_
Law
No. 9374, dated 21.04.2005 "On state aid", amended and VKM No.
605/2016, "De minimis" aid is allowed, if the following conditions
are met:
1._
The
total value of the aid given to an enterprise does not exceed ALL 14,000,000 (fourteen
million), for a financial period of three years. This condition is fulfilled by
the fact that the state aid for an enterprise is in the value of the minimum
gross salary;
2._
The
aid must be granted for a financial period of three years. The duration of the
entire scheme, which has been considered, is 2 years, fulfilling this legal
condition;
3._
Aid
is transparent. In this case, the aid is given in the form of a grant.
·_
Article
71 "Competition and other economic provisions", of the Stabilization
and Association Agreement between the European Communities and their Member States
and the Republic of Albania determines that:
"Practices
contrary to this article are evaluated based on the criteria arising from the
application of the competition rules applicable in the Community, especially in
articles 81, 82, 86 and 87 of the Treaty establishing the European Community
and the interpretative instruments used by the institutions of the Community."
5._
Form of the subsidy
Direct state budget grants.
6._
To whom and how the subsidy is provided
Beneficiaries will be Albanian citizens aged 18-30,
residents of Shkodër Municipality, who have an idea or have an existing small
or medium-sized business and want to transform into eco-innovative businesses.
7._
Subsidy per unit, or in cases where this is not possible, the total amount
or the annual amount budgeted for that subsidy
The state aid plan was drawn up on the
basis of Municipal Council Decision No. 71, dated 27.12.2022 "On the
approval of the Shkodër Municipality's budget for 2023 and the final mid-term
program 2023-2025", as amended. The scheme in total has a total value
planned in the budget of ALL 2,600,000
and it is expected not to exceed the amount of ALL 520,000 per beneficiary.
8._
Duration of the subsidy
2023-2024.
9._
Statistical data permitting
an assessment of the trade effects of the subsidy
Not
available.
1._
Title of the subsidy programme
The scheme "On defining the conditions and
procedures for the reimbursement of fuel excise, consumed in heating
greenhouses for industrial and agro industrial productions manufacturing, used
for technological needs of production".
2._
Period covered by the notification
2023.
3._
Policy objective and/or purpose of the subsidy
The objective is to facilitate the undertakings,
which will use fuel for technological purposes in manufacturing industry.
4._
Background and authority for the subsidy
Ministry of Finance, the General
Department of Macroeconomic and Fiscal Policies.
The
responsible authority for the implementations of the scheme has been the
General Directorate of Taxation until October 2012. In October 2012, it entered
into force the new law on excise (law No. 61/2012), according to
which the responsible institution for excise was charged the General
Directorate of Customs
·_
Law
No. 9765 date 09.07.2007 "On some amendment of law No. 8976", date
12.12.2002 "On excise"
amended
·_
Council
of Ministers Decision No. 1158, dated 13.8.2008 "On defining the
conditions and procedures for the reimbursement of fuel excise, consumed in
heating greenhouses for industrial and agro industrial productions
manufacturing, used for technological needs of production"
·_
Law No. 61/2012 "On Excise in the Republic of
Albania"
·_
Council
of Ministers Decision No. 612, dated 05.09.2012 "On
implementing provisions for the law on excise", article 43 "Reimbursement
on heating greenhouses for industrial and ago industrial productions
manufacturing"
5._
Form of the subsidy
Excise duty reimbursement.
6._
To whom and how the subsidy is provided
All juridical persons, local and
foreign, which use fuel (mazut and solar) during the manufacturing process.
7._
Subsidy per unit, or in cases where this is not possible, the total amount
or the annual amount budgeted for that subsidy
For the year 2023, the amount is ALL 215,840,000.
8._
Duration of the subsidy
The reimbursement scheme has been proportional:
·_
Up to 31st December 2014, the reimbursement
of excise was 100% of the excise paid for the fuel;
·_
From 1st January 2015, the reimbursement
was done for 80% of the paid excise;
·_
From 1st January 2016 up to now, the
reimbursement was done for 50% of the paid excise.
9._
Statistical data permitting an assessment of the trade effects of the
subsidy
Not available.
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