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1. Article 4 shall not apply to the specific additional allocation for the outermost regions. This specific additional allocation for the outermost regions shall be used to offset the additional costs incurred in these regions as a result of one or several of the permanent restraints to their development referred to in Article 349 TFEU.

2. The allocation referred to in paragraph 1 of this Article shall support:

(a) the activities within the scope as set out in Article 5 of this Regulation;

(b) by way of derogation from Article 5 of this Regulation, measures covering operating costs with a view to offsetting the additional costs incurred in the outermost regions as a result of one or several of the permanent restraints to their development referred to in Article 349 TFEU. The allocation referred to in paragraph 1 of this Article may also support expenditure covering compensation granted for the provision of public service obligations and contracts in the outermost regions.

3. The allocation, referred to in paragraph 1 of this Article, shall not support:

(a) operations involving products listed in Annex I to the TFEU;

(b) aid for the transport of persons authorised under point (a) of Article 107(2) TFEU;

(c) tax exemptions and exemption of social charges;

(d) public services obligations not discharged by undertakings and where the State acts by exercising public power.

4. By way of derogation from point (d) of Article 5(1), the ERDF may support productive investments in enterprises in the outermost regions, irrespective of the size of those enterprises.