Are subsidies good for the economy?

Types of subsidies

Many economic activities are subsidized today. For example, subsidized education, transportation, agriculture, film productions, corporate R&D&I activities, NGO development cooperation programs, “renewable” energy production, etc.

The World Trade Organization Agreement on Subsidies and Countervailing Measures disciplines the use of subsidies and regulates the measures that countries can take to counteract the effects of subsidies. Article 1 of this Agreement contains a definition of the term “subsidy”, which includes:

Regulation (EU, Euratom 966/2012 of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) 1605/2002 defines grants as direct financial contributions from the budget that are given liberally for the purpose of financing any of the following activities:

Subsidies examples

The Department of Economy, Planning and Employment published on May 24 in the BOA the ORDEN EPE/520/2021, which establishes the regulatory bases for grants to carry out business projects in Aragon that include experimental development and/or industrial research.

Commission Regulation (EU) 651/2014 of June 17, 2015, in relation to research and development activities, recognizes that aid in this area can promote sustainable economic growth and strengthen the competitiveness of the Union.

The grants included in this Order are contemplated in the Strategic Grants Plan of the Department of Economy, Planning and Employment of the Aragonese Institute of Employment 2020-2023, approved by order of October 25, 2019, of the Regional Minister of Economy, Planning and Employment.

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The bases establish the conditions of access to a subsidy scheme, under a regime of publicity, objectivity and competitive concurrence, to promote the realization of business projects in Aragon that include experimental development and/or industrial research.

Grants in colombia

Financial subsidiesA homologation procedure costs money. It is possible that the costs can be paid in whole or in part by means of a financial subsidy. Qualifications can also be financed.

As a rule, only people living in Germany can get a grant. There are grants for unemployed people or job seekers, as well as for people who are working but cannot afford to pay for the qualification. There is also another possibility: Your employer may bear the costs of the recognition procedure. Talk to your employer about this.

There are some organizations that also cover other costs, e.g. for compensatory measures or adaptation qualifications and learning materials. They will inform you about the subsidy in your specific case.

Are you registered as unemployed or looking for a job in Germany? In this case, the employment agency or job center may cover the costs of the accreditation and possible qualifications.

What are foreign trade subsidies?

Our first priority is the health of our citizens. At the same time, the coronavirus crisis is a major shock to the European and global economy. Member States have already adopted liquidity-supporting budgetary policy measures to increase the capacity of their health systems and provide assistance to particularly affected citizens and sectors.

The coronavirus crisis represents a challenge for the European economy and the livelihoods of citizens. Throughout this health crisis, it is critical that we preserve critical sectors of our economy, as well as our assets, technologies and infrastructure, and it is imperative that we protect workers and jobs.

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The tourism ecosystem has been particularly hard hit by the travel restrictions imposed in the wake of the coronavirus crisis. To revive it, on May 13, 2020, the Commission proposed a series of measures for the gradual and coordinated reopening of tourism facilities and services, along with targeted aid for businesses in the sector. These included:

Are subsidies good for the economy?
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