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Development Law 4399/2016

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Development Law 4399/2016 Signature Valid Digitally signed by VARVARA ZACHARAKI Date: 2016.08.23 21:24: 01 Reason: SIGNED PDF (embedded) Location: Athens The National Printing House 6865 GOVERNMENT GAZETTE OF THE HELLENIC REPUBLIC 22 June 2016 VOLUME A No. 117 LAW 4399 (d) attracting direct foreign investments; (e) high added Institutional framework for establishing Private value; (f) improving the technological level and the Investment Aid schemes for the country’s regional and competitiveness of enterprises; (g) smart specialisation; economic development - Establishing the (h) developing networks, synergies, cooperative initiatives Development Council and other provisions. and generally supporting the social and solidarity economy; (i) encouraging mergers; (j) developing sections and THE PRESIDENT OF THE HELLENIC REPUBLIC interventions to enhance healthy and targeted entrepreneurship with a special emphasis on small and We issue the following law that was passed by Parliament: medium entrepreneurship; SECTION A (k) re-industrialisation of the country; (l) supporting areas with reduced growth potential and reducing regional INSTITUTIONAL FRAMEWORK FOR disparities. ESTABLISHING PRIVATE INVESTMENT AID SCHEMES FOR THE COUNTRY’S REGIONAL Article 2 Definitions AND ECONOMIC DEVELOPMENT For the purposes hereof, in addition to the definitions Article 1 contained therein, the definitions of Article 2 of the General Purpose Block Exemption Regulation shall apply (GBER - Regulation The purpose of this law is to promote the balanced 651/2014 of the Commission). development with respect to the environmental resources Article 3 and support the country’s less favoured areas, increase Applicable Law employment, improve cooperation and increase the average 1. The aids for the aid schemes hereof shall be provided size of undertakings, achieve technological upgrading, form a without prejudice to the provisions of the GBER. The new extrovert national identity (branding), improve provisions of the above Regulation shall apply to all matters competitiveness in high value-added and knowledge- not expressly regulated in this law. intensive sectors, shift the value in the production chain for 2. The aid schemes hereof, for which resources of the the production of more complex products, save natural European Structural and Investment Funds are also used, resources in the perspective of a circular economy, offer shall be subject to the additional terms and conditions of the better services, attract direct foreign investments and, EU and national law governing such aids. ultimately, ensure better positioning of the country in the 3. This law may also apply to investment projects for aids International Division of Labour. The achievement of these granted under schemes covered in other rules of EU law, objectives is pursued by the aids hereof through the schemes after prior notification and approval process by the European provided for in the Special Part hereof, namely by: Commission. Specific matters, and anydifferences arising (a) openness and innovativeness; (b) creating new jobs; from the application of the relevant EU rules shall be defined (c) developing the country’s human resources with an by decisions of the Minister of Economy, Development and emphasis on the employment of trained human resources to Tourism, or any other competent Minister. reverse the current exodus of young scientists; GENERAL PART COMMON PROVISIONS CHAPTER I TERMS AND CONDITIONS OF AID Article 4 General rules for granting aid The aid schemes hereof are subject to the following general rules: 6866 GOVERNMENT GAZETTE Volume A 117/22.06.2016 1. Single Investment Project (Article 14 para. 13 first land and preparatory works such as obtaining permits and sentence GBER) conducting feasibility studies are not considered start of For the purpose of applying the aid scheme hereof, it shall works. For take-overs, “start of works” means the moment of be deemed that a single investment project is also any initial acquiring the assets directly linked to the acquired investment started by the same beneficiary (at group level) establishment (Article 2 point (23) GBER). The start of works including affiliated or associated undertakings, starting within of the investment project before requesting the aid results in three (3) years from the date of commencement of works for the rejection of the entire investment project. another aided investment in the same region (Nuts 3) of 5. Rule of non-discrimination and accessibility of people Regulation (EC) 1059/2003 of the European Parliament and with disabilities. of the Council (OJ L 154). The investment projects included in the aid schemes 2. Cumulation hereof should ensure the necessary conditions to avoid (a) Investment projects aided under the schemes hereof discrimination against vulnerable groups, particularly shall not be included in any other de minimis aid scheme or regarding accessibility to infrastructure, services and goods. schemes. Exceptionally, the decision of notice regarding the Article 5 schemes hereof may provide for the possibility of cumulating Terms and conditions of inclusion the aids under this scheme with the aids of other schemes, 1. Participation of aid beneficiary in the cost of the only if such cumulation does not result in exceeding the investment project highest aid intensity or aid amounts specified in the GBER or The aid beneficiary may participate in the cost of the the relevant Commission Decision (Article 8 para. 3, 4 and 5 investment project either through its own resources or by GBER). external financing, provided that at least twenty-five percent (b) In determining whether the thresholds on maximum aid (25%) of the total investment cost does not contain any State intensities and maximum aid amounts provided for in the aid, public support or provision (Article 14 para. 14 GBER). GBER for the schemes hereof are complied with, the total 2. Minimum threshold of investment projects amount of aids provided, as appropriate, for the aided The minimum eligible threshold of investment for inclusion investment project or undertaking shall be taken into account, of investment projects in the aid schemes hereof shall be and the case of artificial splitting up shall be checked (Article defined by the size of the aid beneficiary, namely: 4 para. 2 and Article 8 para. 1 GBER). (a) for large enterprises, in the amount of five hundred (c) In cases of aid combination of the aids hereof with EU thousand (500,000) euros; (b) for medium-sized enterprises, funding, which is subject to centralised management by the cooperatives and clusters of Article 52, in the amount of two institutions, organisations, joint ventures or other EU bodies hundred fifty thousand (250,000) euros; (c) for small and not under the direct or indirect control of the State, the enterprises, in the amount of one hundred fifty thousand provisions of Article 8 para. 2 GBER shall apply. (150,000) euros; (d) for micro enterprises, in the amount of 3. The "Deggendorf"principle one hundred thousand (100,000) euros; Projects of entities that are subject to a pending recovery (e) for the Social Cooperative Enterprises of Law order after a previous Commission decision declaring an aid 4019/2011 (Gov. Gaz. 216, Vol. A) and the Agricultural illegal and incompatible with the internal market shall not be Cooperatives, the Producers Groups and the Rural included in the aid schemes hereof (Article 1 para. 4 GBER). Partnership of Law 4384/2016 (Gov. Gaz. 78, Vol. A), in the Every investor, when submitting the application for inclusion amount of fifty thousand (50,000) euros. in this law, must declare that it has not received any State aid 3. Content of investment projects The investment projects against which the procedure of the previous section has been falling under the aid schemes hereof should be an initial initiated. investment (Article 2 point 49 GBER); in particular, they 4. Incentive Effect should meet one of the following conditions: (a) setting-up a The aids of the schemes hereof operate as an incentive new establishment; (b) extension of the capacity of an within the meaning of Article 6 GBER, for the further existing establishment; (c) diversification of the output of an development of activities or works and are not provided for establishment into products not previously produced in the activities, which the beneficiary would in any case develop, establishment provided that the eligible costs are higher than even without being granted the aid. The aids shall have an 200% of the book value of assets used again as recorded in incentive effect, only if the beneficiary has submitted a written the fiscal year preceding the application for inclusion of the application for the aid before the start of the works on the investment project; (d) fundamental change in the overall project. The application for the aid shall contain at least the production process of an existing establishment, provided following information: (a) the undertaking's name and size; that the eligible costs exceed the depreciation during the (b) description of the project, including its start and end three previous fiscal years of the assets related to the dates; (c) the location of the project; (d) the list of project activity, which is to be modernised; (e) an acquisition of costs; (e) the type and amount of aid, and (f) the funding of assets belonging to an establishment that has closed or would have closed had it not been purchased by an investor the investment project. unrelated to the seller and excludes sole
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