Investments are financed through external assistance and investment subsidies from the government.
The aid would be in the form of tax-free grants, investment subsidies, tax write-offs and special depreciation rates.
This figure may only cover recurrent cost subsidies and not investment subsidies, which are even higher (see below).
Policy measures like tax cuts or investment subsidies can affect the steady state level of output but not the long-run national curve.
The government thus made a strong commitment to high service standards and to high levels of investment subsidies to achieve those standards.
Companies and public organizations may receive 40% investment subsidies, but private houses do not receive subsidies yet.
On the contrary, investment subsidies under the second pillar will promote a keenness and a willingness for innovation.
Second, we must take care that the investment subsidies are not linked to the traditional support areas of regional aid.
However, I have reservations about certain formulations, such as point 22 of the draft report which seeks to approve a ban on investment subsidies.
This is partly due to investment subsidies from the state.