Once the master lines of the reform of the regional incentive system have been seated by Law 50/1985 of 27 December, and the Regulation that develops it, approved by Royal Decree 1535/1987, of 11 December, is reached the time to use this new instrument for regional development by delimiting an area covering the territory of the Autonomous Community of Galicia, with the exception of the municipal terms included in the declining industrial area Ferrol.

into account the economic and social situation in the region and the delimitation of assisted areas with a regional objective accepted by the Commission of the European Community, the scheme of incentives has been considered Regional and local authorities should be provided with the necessary regulations for the type I economic promotion zones, as long as the qualification accepted by the European Economic Community is subsisting, and may vary if it is modified. The ceiling of the subsidy to be applied to a given project accepted in those economic promotion zones of type I shall be 50 per 100 of the total investment, without exceeding the maximum ceilings for cumulation provided for in this Regulation. legally.

Moreover, with the introduction of the new system of regional incentives, a much more active presence of the Autonomous Communities is introduced, which is based on the current configuration of the State of the Autonomies.

With this new system of regional incentives, which wants to be more agile and coordinated with the other instruments of regional economic development policy, we intend to promote a more harmonious and balanced distribution of the economic activities within the Autonomous Community of Galicia, at the same time as it is intended to influence the development of its endogenous potential to reduce the differences that exist both within its territory and with respect to other territories of the State.

By virtue of all this, the actions of the Rector Council and the Autonomous Community provided for in Article 5, numbers 1 and 2 of Royal Decree 1535/1987 of 11 December 1987, and in accordance with the provisions of the Law, are fulfilled. 50/1985, of 27 December, and in the aforementioned Royal Decree, on a proposal from the Ministry of Economy and Finance and after deliberation by the Council of Ministers at its meeting of 6 May 1988,

DISPONGO:

Article 1. º

In accordance with the provisions of Royal Decree 1535/1987 of 11 December 1987, for which the Regulation of Law 50/1985 of 27 December 1985 is adopted, the economic promotion zone of Galicia, comprising the territory of the Autonomous Community with the exception of the municipal terms included in the declining industrial zone of Ferrol and is classified as type I zone.

Art. 2. º

1. The regional incentives which may be granted in that area may not exceed the maximum rate of 50 per 100 on the investment approved. In any case, this ceiling shall apply only in the priority areas referred to in the following

.

2. No project benefiting from regional incentives under this Royal Decree may receive other financial aid, whatever its nature and the authority or administration which grants them, except those referred to in Article 16 of the Treaty. Royal Decree 1535/1987 of 11 December 1987, which, in addition to those provided for in this Regulation, exceeds the limits on the concurrency of financial aid referred to in Article 14 of that Royal Decree for areas of type I.

Art. 3. º

In the economic promotion zone of Galicia, priority areas will be indicated in the annex to this Royal Decree.

Art. 4. º

The objectives to be achieved with the creation of the economic promotion zone of Galicia are as follows:

Correcting the region's sectoral and territorial imbalances.

Favor a harmonious development by intensifying actions in the industrial and service sectors.

Boosting the potential for endogenous development.

Foster the business initiative.

Art. 5. º

1. The term of validity of this zone of economic promotion, for the purposes of applying for the financial aid that is determined in this Royal Decree, is initiated with the entry into force of the same, and will end when the government determines, to the view of the results achieved and the extent to which the intended objectives are met.

2. The delimitation of the areas defined as priorities in the Annex may be modified in accordance with their socio-economic evolution by the Ministry of Economy and Finance, in agreement with the Autonomous Community.

Art. 6. º

Regional incentives which may be granted in the present area to applicants who carry out investment projects and fulfil the conditions laid down in the Regulation adopted by Royal Decree 1535/1987 of 11 December 1987, and In this Royal Decree of delimitation, they will consist of grants to lost fund on the approved investment.

Art. 7. º

1. For the purposes set out in Article 7 of the Regulation adopted by Royal Decree 1535/1987 of 11 December 1987, the following shall be eligible

:

Extractive and transformative industries, especially those that apply advanced technologies or use alternative energies.

Agri-food industries, aquaculture and processing industries and preserves of fishery products, respecting the sectoral criteria set out in Royal Decree 1462/1986 of 13 June.

Industrial support services and those that significantly improve the area's commercial structures.

Hotel accommodation establishments, tourist camps, rural tourism accommodation, and complementary leisure facilities of special interest, as well as offers for specialized tourism with incidence in the development of the area.

2. Excluded sectors shall be those not mentioned in the preceding paragraph. However, the competent bodies provided for in Article 27 of the Regulation adopted by Royal Decree 1535/1987 of 11 December 1987 are entitled to grant regional incentives to the Rector Council, exceptionally and in advance of the Rector's report. projects which, not being included in the above sectors, contribute significantly to the achievement of the objectives referred to in Article 4 of this Royal Decree.

In any case, account will be taken of the existing EEC standards and criteria for the textile and clothing sectors, synthetic fibres, steel, shipbuilding and any other that can be considered sensitive.

3. By agreement of the Governing Council, restrictions on activities included in the promotable sectors may be established in accordance with the economic policy guidelines.

Art. 8. º

1. Regional incentives may be granted in the region of economic promotion in Galicia, to the applicant companies carrying out investment projects of the following types and dimensions:

(a) Projects for the creation of new establishments, as defined in Article 8.2 of the Regulation, with an approved investment exceeding 15,000,000 pesetas, provided they generate new jobs.

(b) Enlargement projects, as defined in Article 8.3 of the Regulation, with an approved investment the amount of which is significant in relation to the Company's net material assets and, in any case, greater than 15,000,000 of pesetas, provided that they represent an increase in production capacity and generate new jobs.

(c) Modernisation projects whose approved investment is significant in relation to the Company's net material assets, which shall in any case be more than 45 million pesetas, provided that they represent a significant increase of productivity, involve the acquisition of technologically advanced machinery and the level of employment is maintained.

2. Regional incentives may also be granted in cases of transfer projects, as defined in Article 8.4 of the Regulation of Law 50/1985, provided that new investments are made which involve at least double the value of the net tangible fixed assets at the time of filing of the application.

The costs of dismantling, moving and assembling the facilities will be considered as incentives for the purposes of Article 10 of this Royal Decree.

Art. 9. º

Investment projects which are intended to benefit from the benefits provided for in this economic promotion zone must also meet the following requirements:

Be technically, economically and financially viable.

Self-financing at least 30 per 100 of your approved investment. A higher percentage may be required depending on each project.

Not having started the investment before applying for regional incentives.

Art. 10.

1. In accordance with the provisions of Article 10 of Royal Decree 1535/1987 of 11 December 1987, incentives may be considered to be investments made within the following concepts:

Acquisition of land needed for project implementation.

Traids and service connections.

Urbanization and external works suited to the needs of the project.

Civil work in: Offices, laboratories, social and health services of personnel, storage of raw materials, production buildings, industrial service buildings, storage of finished products and other works linked to the project.

Equipment in: Process machinery, electricity services, thermal generators, drinking water supply, internal transport elements, special vehicles for external transport, measurement and control equipment, safety installations, sewage treatment, environmental protection facilities and other equipment related to the project.

Planning, project engineering, and optional job management jobs.

Other investments in tangible fixed assets.

Research and development (R & D) carried out by the Company itself, and other intangible assets linked to the investment requested in amounts not exceeding 20 per 100 of the total investment approved for the project.

2. For the purposes of the last subparagraph of Article 10 (2) of the Regulation, investments which are made by means of deferred payment or leasing arrangements may be approved only if, at the time of to submit the corresponding request for the incentives, by the applicant the obligation to buy the assets within the duration of the regional incentives is assumed, understood as the deadline set for the execution of the project and the fulfilment of the conditions under which it is based, in the relevant Resolution individual notification of the benefits granted.

3. In no case shall it be included among the investment concepts on which the recoverable VAT may be granted.

Art. 11.

For the assessment of projects that meet the requirements set out in the existing provisions, the following criteria will be used:

The amount of the grant shall be related to the total amount of the investment accepted, the number of jobs created and the type of project concerned (first establishment, or enlargement, modernization or transfer).

The use of productive factors in the area, the rate of added value and, where appropriate, the increase in productivity, the incorporation of the advanced technology project and the dynamising nature of the project for the economy of the area.

In the areas defined as priorities, which are included in the Annex to this provision, the percentage of the subsidy that would correspond to the project for the application of the above criteria will be increased by 20 per 100, always respecting the maximum limit laid down in Article 2 of this Royal Decree. The final percentage that results will be rounded to an integer.

Art. 12.

The functions of the Autonomous Community referred to in Article 23.1 of that Regulation shall be exercised by the bodies or entities designated by the Autonomous Community itself to this end.

Art. 13.

The procedure for administering and managing regional incentives will be provided for in Chapters V to VIII of Royal Decree 1535/1987 of 11 December 1987, and in the provisions which the Minister will give in general. Economic and Finance to this effect, with the following particularities:

The applicant must declare the public aid that he has requested or obtained for the same project, both at the start of the file and at any procedural moment in which it occurs.

In projects whose investment in incentive fixed assets is less than 75 million, the competent authority of the Autonomous Community of Galicia will forward to the Directorate-General for Regional Economic Incentives, instead of (c) of those referred to in Article 24 of Royal Decree 1535/1987, a proposal for the assessment of the project and the adequacy of the project as set out in this Royal Decree.

The individual decision to grant or refuse regional economic incentives shall be notified to the person concerned by the Directorate-General for Regional Economic Incentives, through the competent authority of the Autonomous Community. from Galicia.

The Authority of the Autonomous Community of Galicia may accept modifications to the various budget items of the incentive investment, provided that the modification, in more or less, does not exceed 10 per 100 of each item and that this does not lead to a change in the total amount of the incentive investment.

In order to comply with the provisions of Article 33 of Royal Decree 1535/1987 of 11 December 1987, the Autonomous Community of Galicia will forward to the Directorate-General for Regional Economic Incentives a report of the development of the projects, in order to ensure that the projects can be monitored properly and in order to provide the Governing Council with regular information on the aid.

TRANSIENT DISPOSITION

By way of derogation from the third final provision, the case files in the large area of industrial expansion in Galicia will continue to be governed by the provisions under which they are requested and of general application in the large areas, although the administrative bodies which deal with them are those provided for in Law 50/1985 of 27 December, its Regulation adopted by Royal Decree 1535/1987 of 11 December and other concordant rules.

FINAL PROVISIONS

First.

The Minister of Economy and Finance is hereby authorized to make the necessary provisions for the development and implementation of this Royal Decree, as well as to amend the quantitative limits provided for in Articles 8. paragraphs (a), (b) and (c), and (13), second subparagraph, where the circumstances advise.

Second.

This Royal Decree will enter into force the day after its publication in the "Official State Gazette".

Third.

The deadline for the submission of new applications to the benefits of the large area of industrial expansion in Galicia is closed, so the following provisions will be repealed:

Royal Decree 2414/1973 of 23 September, determining the location and delimitation of the large area of industrial expansion in Galicia ("Official State Gazette" of 9 October).

Decree 1837/1975 of 24 July, amending the delimitation of the large area of industrial expansion in Galicia ("Official State Gazette" of 6 August).

Royal Decree 1409/1981, of 19 June, for which a contest is called for benefits in the great area of industrial expansion of Galicia, except as regards to the Management ("Official State Gazette" of July 15).

Any other disposition of equal or lower rank that objects to the content of this Royal Decree.

Given in Madrid to May 6, 1988.

JOHN CARLOS R.

The Minister of Economy and Finance,

CARLOS SOLCHAGA CATALAN

ANNEX

Priority zones

Galicia

Province of Coruña:

Abegondo.

Ames.

Artixo.

Bergondo.

Betanzos.

Boiro.

Camera.

Capela, A.

Carballo.

Cedeira.

Cee.

Cerceda.

Fenced.

Coruña, A.

Culleredo.

Curtis.

Lousame.

Mino.

Moeche.

Walls.

Negreira.

Noia.

Oleiros.

Ordes.

Paderne.

Godfather.

Pontes de García Rodríguez, As.

Porto do Son.

Puebla del Caraminal.

Rianxo.

Ribeira.

Sada.

Santa Comba.

Santiago de Compostela.

Somozas.

Teo.

Province of Lugo:

Becerrea.

Cervo.

Chantada.

Fonsaca, A.

Foz.

Guitiriz.

Lancara.

Lourenza.

Lugo.

Meira.

Mondonedo.

Monforte de Lemos.

Monterroso.

Nogueira de Muniz.

Nogais, As.

Outeiro de Rei.

Pedrafita do Cebreiro.

Quiroga.

Rabade.

Ribbon.

Sarria.

Vilalba.

Viveiro.

Xove.

Province of Ourense:

Allariz.

Bande.

Barbadas.

Valdeorras Boat, O.

Carballino, O.

Castrelo do Val.

Castro Caldelas.

Celanova.

Ent.

Lobios.

Maceda.

Mosque, A.

Ourense.

Puebla de Trives.

Ribadavia.

Rua, A.

San Cibrao de Vina.

Verin.

Viana do Bolo.

Limia Xinzo.

Province of Pontevedra:

Baiona.

Bueu.

Caldas de Reis.

Cambados.

Cangas.

Caniza, A.

Catoire.

Cuntis.

Estrada, A.

Gondomar.

Grove, O.

Save, A.

Lalin.

Marin.

Moana.

Morana.

mos.

Nigran.

Borben's Pashes.

Poio.

Ponteareas.

Ponte-Caldelas.

Pontesures.

Pontevedra.

Porrino, O.

Round The.

Waterfall Salceda.

Save Minus.

Sanxexo.

Silleda.

Soutomaior.

Tui.

Worth.

Vigo.

Vilaboa.

Villagarcia de Arousa.

Vilanova de Arousa.