“What is … ?” – A subsidy

A subsidy is financial support or a financial incentive to support certain investment projects
or plans.

Subsidies are given, for example, by

• state institutions
• public institutions
• or private organisations.

Funding can take various forms, such as in the form of

• grants
• low-interest loans
• tax relief
• or guarantees.

The aim of a subsidy programme is to stimulate economic growth, promote innovation, create jobs and achieve certain social or
environmental policy goals.

Funding programmes can focus on different sectors, such as support for small and medium-sized enterprises (SMEs), start-ups, renewable energies, research and development, infrastructure, etc.

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