diff --git a/vhdlpp/scope.h b/vhdlpp/scope.h
index 118dbb862..f92a74403 100644
--- a/vhdlpp/scope.h
+++ b/vhdlpp/scope.h
@@ -67,6 +67,8 @@ class ScopeBase {
 	// type is returned, otherwise NULL.
       const VTypeEnum* is_enum_name(perm_string name) const;
 
+      virtual bool is_subprogram() const { return false; }
+
 	// Moves signals, variables and components from another scope to
 	// this one. After the transfer new_* maps are cleared in the source scope.
       enum transfer_type_t { SIGNALS = 1, VARIABLES = 2, COMPONENTS = 4, ALL = 0xffff };
diff --git a/vhdlpp/subprogram.h b/vhdlpp/subprogram.h
index 82ba804d1..d06f82461 100644
--- a/vhdlpp/subprogram.h
+++ b/vhdlpp/subprogram.h
@@ -49,12 +49,13 @@ class SubprogramBody : public LineInfo, public ScopeBase {
       int emit(ostream&out, Entity*ent, ScopeBase*scope);
 
 	// Emit body as it would show up in a package.
-      int emit_package(std::ostream&fd) const;
+      int emit_package(std::ostream&fd);
 
       void write_to_stream(std::ostream&fd) const;
       void dump(std::ostream&fd) const;
 
       const SubprogramHeader*header() const { return header_; }
+      bool is_subprogram() const { return true; }
 
     private:
       std::list<SequentialStmt*>*statements_;
diff --git a/vhdlpp/subprogram_emit.cc b/vhdlpp/subprogram_emit.cc
index 2dab34a89..2d9e4e533 100644
--- a/vhdlpp/subprogram_emit.cc
+++ b/vhdlpp/subprogram_emit.cc
@@ -26,15 +26,27 @@
 
 using namespace std;
 
-int SubprogramBody::emit_package(ostream&fd) const
+int SubprogramBody::emit_package(ostream&fd)
 {
       int errors = 0;
 
       for (map<perm_string,Variable*>::const_iterator cur = new_variables_.begin()
          ; cur != new_variables_.end() ; ++cur) {
-        // Enable reg_flag for variables
-        cur->second->count_ref_sequ();
-        errors += cur->second->emit(fd, NULL, NULL);
+          // Enable reg_flag for variables
+          cur->second->count_ref_sequ();
+          errors += cur->second->emit(fd, NULL, this, false);
+      }
+
+    // Emulate automatic functions (add explicit initial value assignments)
+      for (map<perm_string,Variable*>::const_iterator cur = new_variables_.begin()
+         ; cur != new_variables_.end() ; ++cur) {
+          Variable*var = cur->second;
+
+          if(const Expression*init = var->peek_init_expr()) {
+              fd << cur->first << " = ";
+              init->emit(fd, NULL, this);
+              fd << "; // automatic function emulation" << endl;
+          }
       }
 
       if (statements_) {
@@ -54,13 +66,13 @@ int SubprogramHeader::emit_package(ostream&fd) const
       int errors = 0;
 
       if (return_type_) {
-	    fd << "function ";
+	    fd << "function automatic ";
 	    return_type_->emit_def(fd, empty_perm_string);
       } else {
-	    fd << "task";
+	    fd << "task automatic";
       }
 
-	    fd << " \\" << name_ << " (";
+      fd << " \\" << name_ << " (";
 
       for (list<InterfacePort*>::const_iterator cur = ports_->begin()
 		 ; cur != ports_->end() ; ++cur) {
diff --git a/vhdlpp/vsignal.cc b/vhdlpp/vsignal.cc
index ab949d7e1..5d5eca4ff 100644
--- a/vhdlpp/vsignal.cc
+++ b/vhdlpp/vsignal.cc
@@ -21,6 +21,7 @@
 
 # include  "vsignal.h"
 # include  "expression.h"
+# include  "scope.h"
 # include  "vtype.h"
 # include  "std_types.h"
 # include  <iostream>
@@ -49,7 +50,7 @@ void SigVarBase::type_elaborate_(VType::decl_t&decl)
       decl.type = type_;
 }
 
-int Signal::emit(ostream&out, Entity*ent, ScopeBase*scope)
+int Signal::emit(ostream&out, Entity*ent, ScopeBase*scope, bool initialize)
 {
       int errors = 0;
 
@@ -62,8 +63,8 @@ int Signal::emit(ostream&out, Entity*ent, ScopeBase*scope)
 	    decl.reg_flag = true;
       errors += decl.emit(out, peek_name());
 
-      Expression*init_expr = peek_init_expr();
-      if (init_expr) {
+      const Expression*init_expr = peek_init_expr();
+      if (initialize && init_expr) {
             /* Emit initialization value for wires as a weak assignment */
             if(!decl.reg_flag && !type->type_match(&primitive_REAL))
                 out << ";" << endl << "/*init*/ assign (weak1, weak0) " << peek_name();
@@ -75,17 +76,19 @@ int Signal::emit(ostream&out, Entity*ent, ScopeBase*scope)
       return errors;
 }
 
-int Variable::emit(ostream&out, Entity*ent, ScopeBase*scope)
+int Variable::emit(ostream&out, Entity*ent, ScopeBase*scope, bool initialize)
 {
       int errors = 0;
 
+      out << (!scope->is_subprogram() ? "static " : "automatic ");
+
       VType::decl_t decl;
       type_elaborate_(decl);
       decl.reg_flag = true;
       errors += decl.emit(out, peek_name());
 
-      Expression*init_expr = peek_init_expr();
-      if (init_expr) {
+      const Expression*init_expr = peek_init_expr();
+      if (initialize && init_expr) {
 	    out << " = ";
 	    init_expr->emit(out, ent, scope);
       }
diff --git a/vhdlpp/vsignal.h b/vhdlpp/vsignal.h
index 9beda6cef..27de1d778 100644
--- a/vhdlpp/vsignal.h
+++ b/vhdlpp/vsignal.h
@@ -46,14 +46,13 @@ class SigVarBase : public LineInfo {
       void elaborate(Entity*ent, ScopeBase*scope);
 
       perm_string peek_name() const { return name_; }
+      const Expression* peek_init_expr() const { return init_expr_; }
 
     protected:
       unsigned peek_refcnt_sequ_() const { return refcnt_sequ_; }
 
       void type_elaborate_(VType::decl_t&decl);
 
-      Expression* peek_init_expr() const { return init_expr_; }
-
     private:
       perm_string name_;
       const VType*type_;
@@ -71,7 +70,7 @@ class Signal : public SigVarBase {
     public:
       Signal(perm_string name, const VType*type, Expression*init_expr);
 
-      int emit(ostream&out, Entity*ent, ScopeBase*scope);
+      int emit(ostream&out, Entity*ent, ScopeBase*scope, bool initalize = true);
 };
 
 class Variable : public SigVarBase {
@@ -79,7 +78,7 @@ class Variable : public SigVarBase {
     public:
       Variable(perm_string name, const VType*type, Expression*init_expr = NULL);
 
-      int emit(ostream&out, Entity*ent, ScopeBase*scope);
+      int emit(ostream&out, Entity*ent, ScopeBase*scope, bool initialize = true);
       void write_to_stream(std::ostream&fd);
 };