G/SCM/N/25/EEC
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SWEDEN
TABLE OFCONTENTS
Page
I. SUBSIDIES TOSWEDISH INDUSTRY ............................660
1. INTRODUCTION .....................................660
1.1 Method andscope ofthenotification .....................660
1.2 Theobjectives oftheSwedish industrial policy ..............660
2. SUPPORT FOR RESEARCH AND DEVELOPMENT ..............661
2.1 Support forTechnological R&D through NUTEK .............661
2.2 Project financing through theFund forIndustry ..............662
2.3 Energy Research Programme ..........................663
2.4 TheEnergy Technology Fund .........................664
2.5 Transport andCommunication Research through theTransport
andCommunications Research Board ....................665
2.6 Research onElectrical andHybrid vehicles through theTransport
andCommunications Research Board ....................666
2.7 Information Technology .............................667
2.8 Project Financing through theFund forSwedish-Norwegian
Industrial Cooperation ..............................668
3. AIDTOSMALL AND MEDIUM SIZED COMPANIES .............670
3.1 TheRegional Development Companies, ALMI ..............670
3.2 Temporary Support toSmall Companies ..................671
4. SUPPORT FOR EMPLOYMENT AND TRAINING ...............673
4.1 Support forVocational Training ........................673
4.2 Recruitment Aid..................................674
4.3 TheTrainee Temporary Replacement Scheme ...............675
4.4 TheSwedish Council forWork LifeResearch ...............675
4.5 Recruitment Incentive ..............................676
5. EXPORT PROMOTION .................................678
5.1 State Supported Export Credits ........................678
5.2 Export Credit Guarantees ............................678
5.3 General Export Promotion ...........................680
6. REGIONAL AIDTOENTERPRISES .........................681
6.1Regional Development Grant (former Localisation Grants) ..........681G/SCM/N/25/EEC
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6.2 Regional Development Loan (former Localisation Loans) ........682
6.3 Regional Development Aid(former Development Grant) ........683
6.4 Loans toRegional Investment Companies ..................684
6.5 Employment Grants ...............................685
6.6 Reduced Social Security Contributions ....................686
6.7 Regional Transport Aid.............................687
6.8 TheFund forNorthern Sweden ........................689
6.9 Programme forIndustrial Development inRegions of
Regional Policy Priority .............................690
6.10 European Union Structural Funds -Geographical objective area2...691
7. ENVIRONMENTAL AID ................................692
7.1 Investment Grant forEcologically Sustainable Development ......692
8. OTHER FORMS OFSUBSIDIES ...........................693
8.1 State Subsidy forCivil Emergency Preparedness Supply .........693
APPENDIX ..............................................694
Thenetcostmethod ....................................694
II. SUBSIDIES TOSWEDISH AGRICULTURE .........................695
1. INTRODUCTION .....................................695
2. INCOME AND PRICE SUPPORT ...........................696
2.1 Regional price additions .............................696
2.2 Price support tothereindeer sector ......................696
2.3 Support tosugar production ontheisland ofGotland ...........697
2.4 National support forfarming innorthern Sweden .............698
2.5 Compensatory allowances ............................699
3. EXPORT SUPPORT AND PROMOTION ......................701
3.1 Price compensation system forprocessed products ............701
3.2 Export promotion forprocessed foodproducts ...............701
4. STATE AIDFOR INVESTMENTS INAGRICULTURAL PRODUCTION .703
4.1 Land andbuilding rationalisation .......................703
4.2 Setting upaidstoyoung farmers .......................703
4.3 Support formaintenance ofstateowned agricultural
leasehold properties inmarginal mountain areas ..............704G/SCM/N/25/EEC
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5. STATE AIDTOCOMPENSATE FOR DAMAGE AFFECTING
AGRICULTURAL PRODUCTION ORMEANS OFPRODUCTION .....706
5.1 Support foranimal welfare ...........................706
5.2 Support foranimal health care.........................706
5.3 Compensation forcostandlosses connected withcontrol of
epizootic diseases .................................707
5.4 Compensation forcosts andlosses connected withcontrol of
salmonella .....................................708
5.5 Support foranimal disease control ......................708
5.6 Support foranimal autopsies ..........................709
5.7 Compensation forlosses asaconsequence oftheTjernobyl accident .710
5.8 Compensation toowners ofreindeer hurtorkilled bylarge predators 710
5.9 Support forcosts from damages caused bywildanimals .........711
6. SUPPORT OFLANDSCAPE CONSERVATION AND BIODIVERSITY ..713
6.1 Support oflandscape conservation ......................713
6.2 Support formaintenance ofbiodiversity andoftheagricultural
countryside .....................................713
6.3 Education, information anddemonstration projects
about maintenance ofbiodiversity andcultural heritage inforests ...714
6.4 Support formaintenance ofanopenlandscape in
northern Sweden andinforest regions ....................715
6.5 Support forpromotion oforganic production ................716
6.6 Support fortraditional, environmentally friendly cultivation
oflocalvarieties ofbrown beans ontheisland ofÖland .........717
6.7 Support forconservation oflocalbreeds threatened byextinction ...717
7.1 State guarantees onloans ............................719
8.1 State aidforfarmrelief services ........................720
9.1 State aidforguidance andadaptation ofnewactivities ..........721
10.1 Support todevelopment ofreindeer husbandry ...............722
11.1 Health careforfarmers .............................723
12.1 Early retirement scheme formilkproducers ................724
13.1 Compensation forhighcosts ofveterinary services ............725
III. SUBSIDIES TOSWEDISH FISHERIES ............................726
INTRODUCTION ...............................................726
1. Investment aidtofishing enterprises ...............................727
2. Investment aidtoacquaculture enterprises ............................728
3. Investment aidtofishing portfacilities ..............................729G/SCM/N/25/EEC
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4. Investment aidforprocessing andmarketing ..........................730
5. Investment aidforprotection ofcoastal waters .........................731
6. Aidforpromotion/marketing ....................................732
7. Aidfortemporary cessation offishing activity .........................733
8. Aidtostudies andpilotprojects ..................................734
9. Payment ofcompensation toproducer 'sorganizations ....................735
10. State aidtopromote theexports ..................................735
11. State aidfordamages tofishing gear...............................736
12. State aidforstocking offish....................................637
13. Aidtomeasures undertaken within theCommunity Initiative Pesca ............638
14. Aidtoresearch anddevelopment within thefishery sector .................739
15. Investment aidformeasures undertaken within theParliament Initiative
Action PlanforSmall-Scale Coastal Fishing ..........................740G/SCM/N/25/EEC
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I. SUBSIDIES TOSWEDISH INDUSTRY
1. INTRODUCTION
1.1 Method andscope ofthenotification
InSweden thebudget ofthecentral government istheonlysource ofaidtoindustry, local
governments areinprinciple prohibited bylawtogrant aidtoenterprises. However, administration
ofaidprogrammes funded bythecentral government maytakeplace atthelocallevel.
Thenotification covers aidtothebusiness sector, inbroad sense, i.e.trade andindustry. It
isnotpossible toseparate aidfigures tothemining andmanufacturing industry (SITC2 and3).
Thedescription ofthevarious aidschemes follows theoutline suggested byWTO. However,
itisnotpossible topresent statistical datapermitting anassessment oftrade effects.
Thequantitative information isbased onthenetcosttogovernment method. Thismethod
isusedforannual follow-up onstateaidinSweden. Thisapproach isalsousedbyOECD inits"Public
Support toIndustry" project. Themethod isdescribed intheappendix.
Theprogrammes thatwere ineffect 1July1995 arereported oninthenotification.
Inthecourse of1995/96, Swedish administration haschanged itsbudgetary cycle fromfiscal
tocalendar years. Asatransitional measure, thebudget for1995/96 covers an18month period, starting
1July1995 andending 31December 1996. Reported hereisanestimation fortheequivalent ofa
fiscal yearof12months, tobeinlinewiththeprevious reporting, along withanestimation onacalendar
yearbasiswhen thisisavailable. These tworeporting periods areoverlapping bysixmonths andshould
therefore notbeadded. Only oneofthetwofigures should beconsidered.
1.2 Theobjectives oftheSwedish industrial policy
TheSwedish industrial policy isbased ontheprinciple thattheallocation ofproductive resources
isdetermined bythemarket forces. Thegovernment defines thelegalandadministrative framework
fortheeconomic agents, butrefrains fromdirect intervention inindustry. Theobjective ofindustrial
policyistoimprovetheconditionsforsustainedgrowthandinnovationinindustrywithgeneralmeasures.
Improvement ofthefunctioning ofthemarkets andcorrection ofspecific market flaws, i.e.openup
markets,promoteR&Dortrainingexternalitiesandtoprovidethenecessaryinfrastructure,areimportant
issues. Important areasarealsostrengthening ofcompetition, diffusion ofnewtechnology, stimulation
ofsmall enterprises andsecuring theshortandlongtermsupply ofenergy oninternationally competitive
terms.
Stateaidtoindustry hasbeencutdown considerably inthe1980's.Allforms offirmspecific
aidhavebeeneliminated. Sector specific aidhasalsobeenputoutofeffect. Thegovernment hasdeclared
thatstateresources usedforfinancial aidtoenterprises mustbemore efficient inthefuture comprising
more obvious effects ongrowth andcreation ofnewjobs.G/SCM/N/25/EEC
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2. SUPPORT FOR RESEARCH AND DEVELOPMENT
2.1 Support forTechnological R&D through NUTEK
(a) Form ofsubsidy
Grants orloans withconditional repayment.
(b) Amount ofsubsidy
NetcostinSkrmillions: Calendar year1996: 355
- Skr155million tofirms andindividual inventors
- Skr200million totechnological research institutes andco-operative research
institutes
Support isgranted toavariety ofprojects andcannot bebroken down perunit.
(c) Policy objective
Theprimary objective isaidforR&D andthesecondary objective isaidtoSMEs.
(d) Duration
Theprogramme commenced asfrom 1July1993. Duration until1January 1997.
Thisprogramme willbeprolonged.
(e) Statistical data
Thesupport isgranted toavariety ofprojects andsectors, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects.
(f) Legal basis
Thelegal provisions arelaiddown inthefollowing Governmental ordinances:
SFS1993:1332 (Förordning omändring avförordningen 1978:571 omstatligt stödtillteknisk
forskning,industrielltutvecklingsarbeteochuppfinnarverksamhet)andSFS1993:286(Förordning
omändringariförordningen1991:660medinstruktionförNärings-ochTeknikutvecklingsverket).
Asfrom 1January 1996, Governmental ordinance 1995:1254 (Förordning omstatligt stöd
tillteknisk forskning, industriellt utvecklingsarbete ochuppfinnarverksamhet)
(g) Rules andconditions
TheNationalBoardforIndustrialandTechnicalDevelopment(NUTEK),isagovernment
agency which among othertasksadministers mostofthegovernment support totechnical R&D.
Support isgranted touniversities, technological research institutes forbasic research,
co-operative research institutes (i.e.institutes financed jointly bygovernment andindustry)
andtoindividual firms andinventors. Aprecondition forreceiving support intheformofgrants
isthattheresult ofthesupported project ismade public.
Allfirms, regardless ofindustry, areeligible. However, thesupport isfocused onsmall
firms andindividual innovators. Thesupport tofirms andindividual innovators isintheform
ofloans withconditional repayment. Aloancancover upto50%ofproject costs. Repayment,G/SCM/N/25/EEC
Page662
including market interest rate,isrequired ifaproject becomes commercially successful. The
duration andother terms oftheloanaredependent ontheobjective oftheloanandvarious
economic factors. Costs forpersonnel, material andsupplies related toR&D, instruments and
equipment, consulting bought-in research, etc.areeligible foraid.Other possible aidshould
betaken intoaccount before thedecision ofsupport ismade. Inpractice, projects supported
byother stateaidschemes donotnormally receive support fromNUTEK. Totheextent that
thisoccurs, theaidceilings apply tothecombined aid.
Asfrom January 1996 rulesandconditions havebeenaltered inaccordance withthe
stateaidrules within theEuropean Community. Inpractice thenewrules havebeenapplied
asfrom 1January 1995.
2.2 Project Financing through TheFund forIndustry
TheFund forIndustry isapublic foundation. Itsmain objective istopromote industrial
development andmarketing. TheFund should earnenough money toretain itscapital onalongterm
basis. Thiscallsformarket interest ratestocompensate forafewinevitable losses.
(a) Form ofsubsidy
Project financing intheformofloanswithconditional repayment, guarantees andgrants
withroyalty repayments. Nocalculated element ofsubsidy toindividual enterprises, buthigh
riskisaccepted.
(b) Amount ofsubsidy
NetcostinSkrmillions: Calendar year1996: 136
Support isgranted toavariety ofprojects andcannot bebroken down perunit.
(c) Policy objective
Theprimary objective oftheproject financing isaidtoSMEs andR&D.
(d) Duration
Thescheme commenced in1979andwasaltered in1993and1996. Duration hasnot
beenspecified.
(e) Statistical data
Thesupport isgranted toavariety ofprojects andsectors, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects.
(f) Legal basis
Thelegal provisions arelaiddown intheGovernmental ordinance SFS1996:80
(Förordning omfinansiering genom Industrifonden).G/SCM/N/25/EEC
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(g) Rules andconditions
Project financing: TheFund concentrates onsupport tosmall andmedium-sized
companies. There arenorestrictions regarding industry orlocation. Tobeeligible forsupport,
aproject must involve asubstantial risk, buthave acompensating potential tobecome
commercially successful. Themaximum amount ofanaward cannot exceed 50%ofthecosts
ofaproject. Most types ofexpenditure connected withadevelopment project (seldome land
orbuildings) areeligible forfinancing. Allsuccessful SMEs paybackwithmarket interest
rateorroyalty. Financing fromtheFundmaybecombined withregional support, inaccordance
withthestateaidrules intheEuropean Community.
2.3 Energy Research Programme
(a) Form ofsubsidy
Grants orloans withconditional repayment.
(b) Amount ofsubsidy
NetcostinSkrmillions: Calendar year1996: 32
- Skr22million tofirms andindividual inventors
- Skr10million totechnological research institutes andcooperative research
institutes.
Support isgranted toavariety ofprojects andcannot bebroken down perunit.
(c) Policy objective
Theprimary objective oftheprogramme istoestablish fundamental competence and
expertise, tofacilitate theconversion oftheSwedish energy system inorder toreduce the
environmental andclimatic effects ofenergy systems. Theemphasis oftheprogramme islong-
term, i.e.ontechnology thatcanbeexpected tobeimplemented beyond theyear2000. The
programme hasitsmain focus onbasis research, while applied research onlyplays aminor
role.
(d) Duration
Programme commenced originally in1975andhasbeenprolonged several times. The
present programme commenced asfrom 1July1993. Duration untilfurther notice, i.e.has
notbeenspecified.
(e) Statistical data
Thesupport isgranted toavariety ofprojects andsectors, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects.
(f) Legal basis
Thelegal provisions arelaiddown intheGovernmental ordinance SFS1987:819
(Förordningen omstatligt stödtillenergiforskning).G/SCM/N/25/EEC
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(g) Rules andconditions
Supportisgrantedtouniversities,institutesoftechnology,co-operativeresearchinstitutes
(i.e.institutes financed jointly bythegovernment andindustry) andtofirms. Thegeneral rule
isthatallresults fromtheEnergy Research Programme areofficial andshallbemade available.
Aidtofirms accounts foraminor portion (about 15%) oftheexpenditure, andismainly in
theformofloanswithconditional repayment. Costs forpersonnel, materials andsupplies related
toR&D, instruments andequipment, consulting, bought inresearch etc.areeligible foraid.
Maximal aidintensity is50%ofeligible costs. Other possible aidshallalways betaken into
account before decision ofsupport ismade.
2.4 TheEnergy Technology Fund
(a) Form ofsubsidy
Grants, softloans andguarantees.
(b) Amount ofsubsidy
NetcostinSkrmillions: Calendar year1996: 181
- Skr105million tofirms andindividual inventors
- Skr76million totechnological research institutes andcooperative research
institutes.
Support isgranted toavariety ofprojects andcannot bebroken down perunit.
(c) Policy objective
Theprimary objective isaidforR&D. Research, development andpreparations of
commercial introduction ofnewtechnology forenergy production andforenvironmental
protection aresupported through theEnergy Technology Fund.
(d) Duration
Theprogramme commenced asfrom 1July1988. Duration untilfurther notice, i.e.
hasnotbeenspecified.
(e) Statistical data
Thesupport isgranted toavariety ofprojects andsectors, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects.
(f) Legal basis
Thelegal provisions arelaiddown intheGovernmental ordinance SFS1988:805
(Förordning omstatligt stödurenergiteknikfonden, mm.)
(g) Rules andconditions
Support isgranted tothedevelopment, testing anddemonstration ofnewtechniques
intheformoftestplants, pilotprojects, fullscaleplants, etc.Support isalsogranted toappliedG/SCM/N/25/EEC
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research jointly co-financed byindustry. Thebeneficiary isnormally theuserofthenew
technique, mainly small-scale private energy producers andpublic utilities intheenergy sector.
Although themaximum possible aidis50%oftheproject costs, NUTEK hasestablished the
practice thatmaximum grant is25%. There arenoformal restrictions towhich extent thegrant
maybecombined withother aidschemes. However, inpractice, projects receiving aidfrom
theFund arenotgiven support from other schemes.
2.5 TransportandCommunicationResearchthroughtheTransportandCommunicationsResearch
Board
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
NetcostinSkrmillions: Calendar year1996: 71
- Skr32million toprivate firms
- Skr39million touniversities, technological research institutes, cooperative
research institutes.
Support isgranted toavariety ofprojects andcannot bebroken down perunit.
(c) Policy objective
ThePrimary objective isaidforR&D. Secondary objective isenvironmental aidand
support forenergy-saving.
(d) Duration
Programme commenced asfrom1July1993. Duration formally decided every year.
(e) Statistical data
Thesupport isgranted toavariety ofprojects andsectors, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects.
(f) Legal basis
Thelegalprovisions arelaiddown intheGovernment Bill”Research forKnowledge
andProgress ”1992/1993:170 and1996/97:1.
(g) Rules andconditions
Thenatureofassistedprojectsisbasictransportandcommunicationresearchandapplied
research, development anddemonstrations atapre-competitive level. Grants arepredominantly
giventouniversitiesandresearchinstitutions.Regionalauthorities,municipalitiesandcompanies
canbegrantedaidiftheyareengagedinpre-competitivedevelopmentordemonstrationprojects.
Suchprojects aredevoted especially tothedevelopment ofpublic transport. Costs forpersonnel,
material andsupplies related toR&D areeligible foraid.Maximum possible aidintensity isG/SCM/N/25/EEC
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100% oftheeligible costs. Aidisgranted onascientific basis onapplications orinitiatives
fromTheBoard. Grants isregulated byanR&D contract. AtleastSkr15million ayearhas
tobeusedasgrants toresearch, development ordemonstration projects concerning public
transport. There isnoformal restriction towhatextent theaidmaybecombined withother
aidschemes.
2.6 ResearchonElectricalandHybridvehiclesthroughtheTransportandCommunicationsResearch
Board
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
NetcostinSkrmillions: Fiscal year1995/1996: 1
- Skr0million toprivate firms
- Skr1million touniversities, technological research institutes, cooperative
research institutes.
Support isgranted toavariety ofprojects andcannot bebroken down perunit.
(c) Policy objective
ThePrimary objective isaidforR&D. Secondary objective isenvironmental aidand
support forenergy-saving. Theaimoftheprogramme istoinvestigate thepotentials ofsuch
vehicles haveinorder toaccomplish energy-saving andenvironmental benefits. Investigated
arealsotherealcosts forsociety andusers, thedegree towhich thevehicles canfitintothe
existing transport system aswellastheirimpact ontraffic safety. Theaidisnotdevoted to
development ofthevehicles assuch.
(d) Duration
Programme commenced asfrom1July1993. Duration formally decided every year.
(e) Statistical data
Thesupport isgranted toavariety ofprojects andsectors, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects.
(f) Legal basis
Thelegal provisions arelaiddown intheGovernment Bills; 1992/1993:179 and
1993/1994:100.
(g) Rules andconditions
Theaidisdirected towards research, development anddemonstration ofelectrical
vehicles andhybrid vehicles from asocio-economic andinfrastructural point ofview. The
research ispre-competitive andtheresult ispublicly available. Aidisgranted onascientific
basisonapplications orinitiatives fromtheBoard. Grants areregulated byanR&D contract.G/SCM/N/25/EEC
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Theprogramme istobecarried outinclose co-operation withindustry andother interested
parties andthecostsfortheprogramme asawhole aresupposed tobeshared withtheseparties.
Costsforpersonnel,materialandsuppliesrelatedtoR&Dareeligibleforaid.Maximumpossible
aidintensity is100% oftheeligible costs. There arenoformal restrictions towhatextent the
aidmaybecombined withother aidschemes.
2.7 Information Technology
(a) Form ofsubsidy
Grants orloans withconditional repayment.
(b) Amount ofsubsidy
NetcostinSkrmillions: Calendar year1996: 124
- Skr71million toprivate firms
- Skr53million totechnological research institutes andcooperative research
institutes.
Support isgranted toavariety ofprojects andcannot bebroken down perunit.
(c) Policy objective
Theprimary objective isaidforR&D. Thesecondary objective isaidtoSMEs
(d) Duration
Theprogramme commenced asfrom 1July1993. Duration until1January 1997.
From thisdateon,measures concerning information technology willbecovered fromthebudget
forsupport forTechnological R&D, see2.1above.
(e) Statistical data
Thesupport isgranted toavariety ofprojects andsectors, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects.
(f) Legal basis
Thelegalprovisions arelaiddown inGovernment Bill”Research forKnowledge and
Progress ”1992/1993:170, andtheGovernmental ordinance: SFS1993:1332 (Förordning om
ändring avförordningen 1978:571 omstatligt stöd tillteknisk forskning, industriellt
utvecklingsarbete ochuppfinnarverksamhet) andSFS: 1993:286 (Förordning omändringar
iförordningen 1991:660 medinstruktion förNärings- ochTeknikutvecklingsverket). Asfrom
1January 1996, Governmental ordinance 1995:1254 (Förordning omstatligt stödtillteknisk
forskning, industriellt utvecklingsarbete ochuppfinnarverksamhet).
(g) Rules andconditions
TheNationalBoardforIndustrialandTechnicalDevelopment(NUTEK),isagovernment
agency which among othertasksadministers mostofthegovernment support totechnical R&D.G/SCM/N/25/EEC
Page668
Supportisgrantedtouniversities,technologicalresearchinstitutesforbasicresearch,cooperative
research institutes (i.e.institutes financed jointly bygovernment andindustry) andtoindividual
firms andinventors. Aprecondition forreceiving support intheformofgrants isthattheresult
ofthesupported project ismade public.
Allfirms, regardless ofindustry, areeligible. However, thesupport isfocused onsmall
firms andindividual innovators. Thesupport tofirms andindividual inventors isintheform
ofloans withconditional repayment. Aloancancover upto50%ofproject costs. Repayment,
including market interest rate,isrequired ifaproject becomes commercially successful. The
duration andother terms oftheloanaredependent ontheobjective oftheloanandvarious
economic factors. Costs forpersonnel, material andsupplies related toR&D, instruments and
equipment, consulting bought-in research etc.areeligible foraid.Other possible aidshould
betaken intoaccount before decision ofsupport ismade. Inpractice, projects supported by
other stateaidschemes donotnormally receive support fromNUTEK. Totheextent thatthis
occurs, theaidceilings apply tothecombined aid.
Asfrom1January 1996 rulesandconditions hasbeenaltered inaccordance withthe
stateaidrules within theEuropean Community. Inpractice thenewrules havebeenapplied
asfrom 1January 1995.
2.8 Project Financing through theFund forSwedish-Norwegian Industrial Cooperation
TheFund forSwedish-Norwegian Industrial Cooperation isafoundation operating relatively
independently fromtheSwedish andNorwegian Governments. TheFund should earnenough money
tocover theinflation onalongtermbasis. Thiscallsformarket interest ratestocompensate fora
fewinevitable losses.
(a) Form ofsubsidy
Grants, loans withconditional repayment andgrants withroyalty repayments.
(b) Amount ofsubsidy
NetcostinSkrmillions: Calendar year1996: 5(toSwedish firms).
Support isgranted toavariety ofprojects andcannot bebroken down perunit.
(c) Policy objective
Theprimary objective isaidtoSMEs andforR&D. Theobjective oftheFund isto
support development cooperation between Swedish andNorwegian companies.
(d) Duration
Theprogramme commenced asfrom1January 1982. Duration untiltheyear2001,
withpossible prolongation.
(e) Statistical data
Thesupport isgranted toavariety ofprojects andsectors, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects.G/SCM/N/25/EEC
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(f) Legal basis
Thelegal provisions arelaiddown intheGovernmental ordinance SFS1990:45
(Förordningen omstödgenom Fonden försvenskt-norskt industriellt samarbete).
(g) Rules andconditions
Anycostsconnected withadevelopment project (seldom landorbuildings) areeligible.
Maximal aidintensity is50%ofeligible costs, inexceptional cases theaidintensity canbe
higher, however themaximal amount isSkr50million. Aprecondition isthattheproject is
ahighriskproject, hasprospects tobecommercially successful onarelatively shorttermbasis
andthatstandard market sources arenotavailable. Allsuccessful SMEs paybackwithmarket
interest ratesorroyalty. Beneficiaries areSwedish andNorwegian companies inallindustry
except theextraction ofoilandgas.There arenoformal restrictions towhich extent theaid
maybecombined withother aidschemes.G/SCM/N/25/EEC
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3. AIDTOSMALL AND MEDIUM SIZED COMPANIES
3.1 TheRegional Development Companies, ALMI
ALMI, Regional Development Companies, consist ofaparent company and22regional
subsidiaries. Theobjective ofALMI istostrengthen thecompetitiveness andprofitability ofsmall
andmedium-sized enterprises andtopromote theformation ofnewfirms. ALMI replaced theRegional
Development Funds in1994.
(a) Form ofsubsidy
Loan guarantees, loans, newbusiness loans anddevelopment capital intheform of
grants withroyalties repayment andsoftloans.
(b) Amount ofsubsidy
NetcostinSkrmillions: Calendar year1995: 118
NetcostinSkrmillions: Calendar year1996: 163
Support isgranted toavariety ofprojects andcannot bebroken down perunit.
(c) Policy objective
Theprimary objective ofthescheme isaidtoSMEs. TheRegional Development
Companies should strengthen thecompetitiveness andprofitability ofsmall andmedium sized
enterprises (generally defined asfirms withlessthan250employees, inaccordance withthe
European Commission definition) andtopromote theformation ofnewfirms.
(d) Duration
Theprogramme forloans andguarantees commenced in1978, development capital
in1982andnewbusinessloansin1993.Durationuntilfurthernotice,i.e.hasnotbeenspecified.
(e) Statistical data
Thesupport isgranted toavariety ofprojects andsectors, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects.
(f) Legal basis
Thelegal provisions arelaiddown inthefollowing Governmental ordinances:
SFS1994:1100 (Förordning omstatlig finansiering genom regionala utvecklingsbolag) altered
SFS1995:1196.
(g) Rules andconditions
General rules forallforms ofaid:Thescheme isstrictly complementary toprivate
institutions. Thescheme isintended forsmall firms, i.e.firms withlessthan250employees.
(Inpractice, oftenunder 50employees.) TheRegional Development Companies havediscretion
inrespect oftheterms oftheloans, i.e.therateofinterest, duration andrepayment holidays.
However, thefinancing should beoncommercial terms andaiming atareasonable yield and
risk-spread.G/SCM/N/25/EEC
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Thelending should beoncommercial terms butonahighrisklevel. Only firms that
areprofitable orhavereasonable prospects tobecome profitable areeligible. TheCompanies
alsoprovide counselling. Thescheme maybecombined withregional support andsupport
from NUTEK, inaccordance withthestateaidrules intheEuropean Community.
Loans: High riskandslightly above market rates. Badcollateral accepted.
Development capital: High riskandbadornocollateral accepted.
Guarantees: High riskandbadcollateral accepted. Guarantee feerequired.
Newbusiness loans: Theloantostart-ups iseither apersonal loanmade outtothe
entrepreneur (injected intothecompany asrestricted equity) orarisk-carrying (unsecured)
debenture loantothecompany. Maximum is30%oftheamount offinancing, butthelimit
isSkr1million. Theloanrunsfor10-15 years andisinstalment-free during thefirstfiveyears.
Theloanisinterest-free fortwoyears, withreduced interest forthree years; from thesixth
yearmarket interest ispaid. Repayment starts thesixth year. Anopening charge of2%on
granted loans ispayable andisdeducted when theloanispaid. Security isnormally not
necessary.
Supplementary loan: Ifacompany which hasbeengranted aloanforanewcompany
requires further financing, asupplementary loanmaybegranted butonlyifthere aregood
reasons forit,andifanapplication isreceived bythefundwithin three years oftheloanfor
anewcompany being granted. Authorized applicants areprivate persons orcompanies. The
applicant hastocontribute withatleast10%ofthecapital. Allsortsofbusinesses areeligible.
3.2 Temporary Support toSmall Companies
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
NetcostinSkrmillions: Fiscal year1995/96: 275
NetcostinSkrmillions: Calendar year1996: 166
Support isgranted toavariety ofprojects andcannot bebroken down perunit.
(c) Policy objective
Theprimary objective ispromotion ofemployment-generating investments within small
companies andbalance within regions.
(d) Duration
Duration originally asfrom 1July 1994 to30June 1995. Prolonged until
31December 1997.G/SCM/N/25/EEC
Page672
(e) Statistical data
Support isgranted toavariety ofprojects andsectors, therefore itisnotpossible to
present statistical datapermitting anassessment oftrade effects.
(f) Legal basis
ThelegalprovisionsarelaiddowninGovernmentordinance:SFS1994:773(Förordning
omtillfälligt småföretagsstöd), altered SFS1996:1496 (Förordning omändring iförordningen
(1994:773) omtillfälligt småföretagsstöd).
(g) Rules andconditions
Supportishandledbythe24CountyAdministrativeBoards(Länsstyrelse).Itisavailable
tosmall companies throughout Sweden, withtheexception ofcompanies within thecar,steel,
synthetic fibreortextile industries. Small companies aredefined according totheEuropean
Commission definition asconsisting of50employees orlessandhaving anannual turnover
oflessthanSkr40million.
Support isgranted forinvestments estimated tocreate long-term employment
opportunities. Theprerequisites arethatitdoesnotcontribute totherelocation ofanactivity
fromonecounty toanother, nortothereconstructing ofanactivity. Anactivity thatrecently
hasundergone suchreconstruction isalsoexcluded from receiving support.
Approved capital needed fortheinvestment cannotexceed Skr20million. Support
canbegiven withatmost15%oftotalcostsaslongasitdoesnotexceed theamount offunds
needed fortheinvestment totakeplace.G/SCM/N/25/EEC
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4. SUPPORT FOR EMPLOYMENT AND TRAINING
Labour market support isaimed atstimulating companies andauthorities tohireindividuals
whofaceparticular difficulties finding work, forinstance youth, disabled, refugees andimmigrants
andelderly. Thesupport isgenerally given directly totheemployer. Thiskindofaidisintended to
giveanincentive fortheemployers tohireanindividual theywould notelsehave hired andto
compensate forcosts fortraining andequipment.
Theschemes noted below, i.e.support forVocational Training, Recruitment Aid,Trainee
TemporaryReplacementsSchemeandRecruitmentIncentive,areintendedforcompaniesandareregarded
toconstitute asubsidy inthemeaning oftheWTO Agreement onSubsidies. Noted below isalsoa
scheme aimed atimproving working lifeconditions.
4.1 Support forVocational Training
(a) Form ofsubsidy
Regular grants foron-the-job-training.
(b) Amount ofsubsidy
NetcostinSkrmillions: Fiscal year1995/1996: 225
NetcostinSkrmillions: Calendar year1996: 265
(Only support totheindustry andtrade sector areincluded inabove figure)
Support isgranted toavariety ofprojects andcannot bebroken down perunit.
(c) Policy objective
Theprimary objective ofthescheme istoavoid disruption intheproduction mainly
insmall andmedium-sized companies duetolackofskilled workers, toavoid lay-off andto
support workers indanger oflosing theirjobs.
(d) Duration
Theprogramme commenced in1984. Duration until31December 1997. Thisscheme
willbeterminated asfrom 1January 1998.
(e) Statistical data
Thesupport isgranted toavariety ofprojects andsectors, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects.
(f) Legal basis
Thelegal provisions arelaiddown intheGovernmental ordinance SFS1984:518
(Förordning ombidrag tillarbetsmarknadsutbildning iföretag).G/SCM/N/25/EEC
Page674
(g) Rules andconditions
Allfirms, regardless ofindustry, areeligible. Theaidisintheformofagrant. The
stateaidtoindividual companies covers theactual costofthetraining course uptoamaximum
ofSkr60perhourforamaximum of920hours.
4.2 Recruitment Aid
(a) Form ofsubsidy
Gross wage subsidy forenterprises recruiting certain unemployed individuals.
(b) Amount ofsubsidy
NetcostinSkrmillions: Fiscal year1995/1996: 1,104
NetcostinSkrmillions: Calendar year1996: 905
Support isgranted toavariety ofprojects andcannot bebroken down perunit.
(c) Policy objective
Theprimary objective ofthescheme istoincrease employment, mainly oflong-term
unemployed andpersons withdifficulties togetajob.
(d) Duration
Theprogramme commenced in1984. Duration hasnotbeenspecified. During the
calendar year1997themaximum budget forthisscheme islimited toSkr300million.
(e) Statistical data
Thesupport isgranted toavariety ofprojects andsectors, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects.
(f) Legal basis
Thelegal provisions arelaiddown intheGovernmental ordinances: SFS1995:338
(Förordning omändring avförordningen 1986:414 omrekryteringsstöd) and1995:720
(Förordning omändring iförordningen (1986:414) omrekryteringsstöd). SFS1996:1427
(Förordning omändring iförordningen (1986:414) omrekryteringsstöd).
(g) Rules andconditions
Allfirms, regardless ofindustry, areeligible. However, asfrom 1January 1997, a
fewsensitive sectors according toEUruleshavebeenexempted (steel, car,synthetic, fibre,
shipbuilding, agriculture, fisheries, transport). Theaidisintheform ofagrant thatcovers
maximum Skr350perdayormaximum 50%ofthewage. Theindividual must havebeen
unemployed foraperiod ofatleastoneyear. Theduration oftheaidmustnotexceed 6months.G/SCM/N/25/EEC
Page675
4.3 TheTrainee Temporary Replacement Scheme
(a) Form ofsubsidy
Deduction ofsocial fees.
(b) Amount ofsubsidy
NetcostinSkrmillions: Fiscal year1995/1996: 333
NetcostinSkrmillions: Calendar year1996: 377
Support isgranted toavariety ofprojects andcannot bebroken down perunit.
(c) Policy objective
Theprimary objective isaidtoemployment intheform ofdeduction ofsocial fees
foron-the-job-training.
(d) Duration
Thescheme commenced asfrom 1July1991. Duration hasnotbeenspecified.
(e) Statistical data
Thesupport isgranted toavariety ofprojects andsectors, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects.
(f) Legal basis
Thelegalprovisions arelaiddown ingovernmental ordinance: SFS1993:746 (Lagen
omändring ilagen 1993:237 omtillfällig avikelse frånlagen 1981:691 omsocialavgifter).
Asfrom 1January 1997 thelegal provisions arelaiddown inSFS1996:1427 (Förordning
omändring iförordning omändring iförordningen (1986:414) omrekryteringsstöd).
(g) Rules andconditions
Eligible costs arewage costs forthetemporary employee. Theemployers thattake
ontemporary employees qualify fordeduction ofsocial feesofSkr400perday.Thededuction
fortraining costs ismaximum Skr35perhouroftraining andemployee, subject toalimit
ofSkr20,000 peremployee. Allfirms regardless ofsector orlocation areeligible, however,
thebeneficiaries aremainly county councils andmunicipalities. About 20%oftheprogrammes
budget goestoprivate firms. Figures reported areestimation oftheprivate sectors share of
theprogrammes budget. Theprojects supported under thisscheme areexcluded fromreceiving
aidfrom other sources. Asfrom 1January 1997 support isgiven intheform ofgrants. Aid
levels havebeenslightly affected.
4.4 TheSwedish Council forWork LifeResearch
(formerly TheSwedish Work Environment Fund)
TheSwedish Work Environment Fund isfinanced byaspecial work environment levyincluded
inthesocial security contributions paidbyemployers. Theagency wasestablished in1972. TheFundG/SCM/N/25/EEC
Page676
wasclosed down inJune1995 andreplaced withTheSwedish Council forWork LifeResearch as
from1July1995. TheCouncil isfinanced overthestatebudget. TheCouncil shallinitiate andsupport
R&D thatpromotes agoodworking environment, efficient organization ofwork andalabour market
thatisaccessible toall.Theactual operations arerather different from those oftheprevious fund,
withanemphasis onsupport formainly academic research ofgeneral importance inthefieldofworking
lifeconditions. Grants tospecific companies arerare.
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
NetcostinSkrmillions: Fiscal year1995/1996: 2
Support isgranted toavariety ofprojects andcannot bebroken down perunit.
(c) Policy objective
Theprimary objective isimprovement ofwork conditions andquality ofwork. The
secondaryobjectiveisaidforR&D.TheCouncilsupportssuchR&D,educationandinformation
thatcancounteract theemergence ofindustrial injury orinother ways promotes improved
working environment.
(d) Duration
Duration hasnotbeenspecified.
(e) Statistical data
Thesupport isgranted toavariety ofprojects andsectors, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects.
(f) Legal basis
Thelegal provisions arelaiddown ingovernmental ordinance: SFS1995:865
(Förordning medinstruktion förRådet förarbetslivsforskning).
(g) Rules andconditions
Project costsforR&D intheareaofoccupational safety andhealth, work organization
andlabour market issues. Thesupport from theCouncil maybecombined withother aid,
however, formainly research projects itdepends onthepurpose.
4.5 Recruitment Incentive
(a) Form ofsubsidy
Taxconcession.G/SCM/N/25/EEC
Page677
(b) Amount ofsubsidy
NetcostinSkrmillions: Calendar year1996: 187
(Itisnotpossible toobtain exactfigures forthistaxconcession. Above figures represent
anrough estimation made byTheNational TaxBoard)
(c) Policy objective
Theprimary objective isaidtoemployment. Theaimis,intheindividual case, to
increase thenumber ofemployment opportunities inthetrade- andindustrial sector andto
stimulate economic growth. Furthermore, tostimulate companies tolimitthewithdrawal of
overtime infavour ofnewemployment andrecruiting unemployed people.
(d) Duration
Theprogramme commenced asfrom1March 1995. Duration until1July1996. The
firsttaxconcessions canbegranted from1March 1994. Thisprogramme hasbeenterminated
asfrom 1July1996.
(e) Statistical data
Support isgranted toavariety ofprojects andcannot bebroken down perunit.
(f) Legal basis
Thelegal provisions arelaiddown intheGovernment Bill1994/95:137 andinthe
followingGovernmentalordinancesSFS:1995:287(Lagomanställningsstöd)andSFS:1995:288
(Lagomändring ilagen (1993:1503) omsocialavgifter.
(g) Rules andconditions
Allnewemployment ’sintheprivate sector thattakeplace between 1January and
15May1995areeligible foraidonthecondition thatthenewemployee hasbeenunemployed
orhasparticipated inlabour market measures atleastfourweeks during theperiod November
toDecember 1994. Thetaxconcession amounts to32.86% ofgross yearly wages. Thefirst
concession canbegranted forwage costthatoccur during March 1995. Theemployer needs
acertificate issued bytheemployment office toutilize thetaxconcession. Theemployment
office, thelocaltaxauthorities andTheSwedish National Audit Bureau supervise andcontrol
thatnecessaryconditionsarefulfilled.Thetaxconcessionispossibletocombinewithrecruitment
subsidy, inwhich casethetotalaidintensity ismaximal 75%ofeligible costs.G/SCM/N/25/EEC
Page678
5. EXPORT PROMOTION
5.1 State Supported Export Credits
TheState Supported Export Credits arehandled bytheSwedish Export Credit Corporation
(SEK). SEKisdeemed verycreditworthy andcantherefore borrow onthemarket atalowinterest
rate. Thelastyear'sSEKhasthereby supplied asurplus tothestate.
(a) Form ofsubsidy
State supported export credits intheform ofCIRRs.
(b) Amount ofsubsidy
NetcostinSkrmillions: Fiscal year1995/1996: 0
StateSupported Export Credits aregranted toavariety ofprojects andcannot bebroken
down perunit.
(c) Policy objective
Theprimary objective ofthescheme istoprovide longtermexport financing forexports
ofcapital goods and/or services.
(d) Duration
Thescheme commenced in1978. Duration until further notice, i.e.hasnotbeen
specified.
(e) Statistical data
StateSupportedExportCreditsaregrantedtoavarietyofprojectsandsectors,therefore
itisnotpossible topresent statistical datapermitting anassessment oftrade effects.
(f) Legal basis
Thelegal provisions arelaiddown inthefollowing governmental ordinance:
SFS1981:665 (Förordning omexportkreditfinansiering medstatligt stöd).
(g) Rules andconditions
Thescheme isavailable forexports ofcapital goods and/or services. Thescheme is
inconformity withtheOECD Arrangement onGuidelines forOfficially supported Export
Credits.
TheSwedish Export Credit Corporation wasfounded in1962 andisowned halfby
theState andhalfbythelargest Swedish commercial banks.
5.2 Export Credit Guarantees
TheSwedish Export Credits Guarantee Board (EKN) isagovernment agency established in
1933topromote Swedish exports byissuing ofguarantees. EKNcancover political and/or commercialG/SCM/N/25/EEC
Page679
risksinconnection withexport transactions. Parliamentary andgovernment guidelines havealways
required theEKN toaimatbeing self-supporting. Oldoperations, i.e.guarantees issued before
1July1990, arereported inaccounts completely separated fromnewoperations. EKN hastheright
toborrow intheNational DebtOffice tocover deficits, ifnecessary. EKN hastopayinterest onthis
borrowing.
(a) Form ofsubsidy
Guarantees against political andcommercial risks.
(b) Amount ofsubsidy
NetcostinSkrmillions: Calendar year1996: 0
(Note: Incaseofdeficit, EKN borrows intheNational DebtOffice andpaysinterest.
Therefore thecostinthenational budget should bezero.)
Support isgranted toavariety ofprojects andcannot bebroken down perunit.
(c) Policy objective
Theprimary objective istopromote Swedish exports.
(d) Duration
Thescheme commenced in1933. Duration until further notice, i.e.hasnotbeen
specified.
(e) Statistical data
Thesupport isgranted toavariety ofprojects andsectors, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects.
(f) Legal basis
Thegeneral framework forthemandate oftheEKN anditsactivities wasestablished
byaGovernment BilltotheParliament inOctober 1989. Themandate oftheEKN is
furthermore regulated byGovernmental Ordinances: SFS1987:861, 1988:1225 and1990:113.
(g) Rules andconditions
Export credit guarantees maybegranted toexporters operating inSweden, Swedish
andforeign banks orfinancial institutes thatarefinancing Swedish exports. Non-Swedish goods
mayalsoguaranteed byEKN ifitispartofaSwedish export sale. Aforeign company may
alsoreceive anEKN guarantee ifitexports Swedish goods and/or services. Export credit
guarantees areissued forshort, medium andlong- termcredits. TherulesoftheArrangement
onGuidelines forOfficially Supported Export Credits ("consensus") andtheBerne Union
Understanding isadhered to.Theexport credit guarantee activities should break even. There
isnoexantesubsidy. Thecompanies payapremium fortheguarantee which isriskbased
andshould cover expected losses andadministrative costs. TheSwedish system isoneofthe
most stringent when itcomes tothedemand forbreak evenandforriskbased premiums.G/SCM/N/25/EEC
Page680
5.3 General Export Promotion
(a) Form ofsubsidy
Thefinancial support ofthegovernment isdirected totheSwedish Trade Council,
which isasemi-public organisation, which mainly provides information andadvice toSwedish
companies, mainly SMEs. TheCouncil alsoinitiates andimplements various collective export
promotion activities likeexhibitions andsalesmissions. Such activities aremainly financed
bythecompanies.
(b) Amount ofsubsidy
NetcostinSkrmillions: Fiscal year1994/1995: 0
(c) Policy objective
TheprimaryobjectiveistosupportexportandinternationalizationofSwedishcompanies
inawaythatpromotes thelong-term development oftheSwedish economy.
(d) Duration
Thescheme commenced in1972. Duration hasnotbeenspecified.
(e) Statistical data
(f) Legal basis
Agreement between thegovernment andtheGeneral Swedish Export Association. The
existing agreement isfrom 1992. Government Bill1991/1992:108.
(g) Rules andconditions
Theservices oftheTrade Council areavailable forallSwedish firms regardless of
industry andtotheexport ofservices aswellasgoods. Anumber ofcompanies choose topay
afeethatgives them adiscount oncertain services. Small andmedium-sized firms aregiven
priority.
Support isgiven intheform of:
- Information onmatters regarding foreign trade andforeign markets.
- Export promotion activities, partly financed bygovernment funds, e.g.
exhibitions, market surveys, andmissions abroad.
Theactivities oftheTrade Council arepartly financed bythegovernment, partly by
thecompanies subscribing toitsservices. Government funds areusedtofinance mostofthe
information services andasmaller partoftheexport promotion activities.
Thetotalturnover oftheSwedish Trade Council wasaround Skr400million inthe
calendar year1996. Outofthisamount around Skr144million wasfunded bythegovernment
andtherestbyindividual companies, through feestotheTrade Council orbypayment for
specific export activities.G/SCM/N/25/EEC
Page681
6. REGIONAL AIDTOENTERPRISES
Regional aidtoenterprises inSweden isgranted within theframework ofseven mainschemes:
Regional Development Grants, Regional Development Loans, Development Grants, Loans toRegional
Investment Companies, Employment Grants, Reduced Social Security Contributions andRegional
Transport Aid. ThemaingoalofSwedish regional policy istopromote sustainable growth, freedom
ofchoice andagoodenvironment, sothatequal living conditions arecreated forthecitizens inwhatever
partofthecountry theylive. Because ofthespecial conditions ofliving inlarge parts ofSweden an
active regional policy hasformany years beenofmajor importance forthese regions.
6.1 Regional Development Grant
(formerly Localization Grants)
(a) Form ofsubsidy
Grants, which canbereclaimed iftheobjectives, especially thepurpose ofcreating
newjobs, arenotfulfilled.
(b) Amount ofsubsidy
NetcostinSkrmillions: Fiscal year1995/1996: 389
NetcostinSkrmillions: Calendar year1996: 358
Support isgranted toavariety ofsectors andrecipients andcannot bebroken down
perunit.
(c) Policy objective
Theprimary objective isregional aidindesignated areas. Thesecondary objective is
aidtoSMEs andaidtoemployment indesignated areas. Themain objective ofthescheme
istopromote development ofindustry andtocreate newemployment inthedesignated areas.
Regional Development grants canbeawarded inconnection withinvestments inbuildings,
machinery, etc.Theawarding ofagrant fortheseobjectives hasmany reasons. Asforexample:
Thecostofbuilding ishigher inthedesignated areas because ofclimatic reasons, transport
costs, etc.Itismore difficult tofinance theseinvestments ontheregular credit market because
oftheirlowalternative value.
(d) Duration
Theprogramme commenced asfrom1July1990. Duration formally decided forevery
newfiscal year.
(e) Statistical data
Thesupport isgranted toavariety ofprojects andsectors, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects.
(f) Legal basis
Thelegalprovisions arelaiddown intheGovernmental Ordinance (Förordningen om
regionalpolitiskt företagsstöd): SFS1990:642 and(from 1January 1997) inSPS1996:1570
(Förordning omändring iförordningen (1990:642) omregionalpolitiskt företagsstöd).G/SCM/N/25/EEC
Page682
(g) Rules andconditions
Natural orjuridical persons operating inSweden andpublic authorities working with
viability incertain competitive sectors onmarket conditions areeligible. (Incertain cases aid
canalsobegranted tonon-profit associations.) Thefirmmustbeprofitable andthefirmmust,
asarule,increase employment. Inorder topromote equality between menandwomen there
isalsoarulethatatleast40%ofthenewjobscreated ineachproject shallbereserved for
eachsex.Thetotalgrant element maynotexceed themaximal aidintensity ineachdesignated
area.
Thenature ofassisted projects canbeinvestments inbuildings andmachinery, etc.
Theformoftheaidisagrant, which canbereclaimed iftheobjectives, especially thepurpose
ofcreating newjobs, arenotfulfilled.
Thegrant isawarded discretionary according tothecalculated needforeachindividual
project, thesizeoftheinvestments, thenumber ofnewjobs, etc.Maximal intensity is35%
ofeligible investment costs inaidarea1and20%inaidarea2andstructural aidareas. In
some cases themaximal intensity islower andinexceptional cases itcanbehigher, maximum
50%(government decision). Asfrom 1January 1997 themaximal grant is40%ofeligible
investment forsmall andmedium sized companies, and35%forother companies i.e.upto
250employees, inregional aidarea1.Inaidarea2themaximum grant is20%.
Themain ruleisthatthegrant istaxable asanincome totherecipient. Thegeneral
level forcorporate income taxes isabout 30%flatrate.Insome cases thetaxation isbased
onlower depreciation. InSweden, thevalue ofbuildings maydepreciate atratesvarying from
2to5%perannum, depending onthetypeofthebuilding. Machinery isnormally depreciated
during a5yearperiod. Thegrant canbeawarded either bytheGovernment, TheIndustrial
andTechnical Development Board ortheCounty Administrative Boards.
6.2 Regional Development Loan
(formerly Localization Loans)
(a) Form ofsubsidy
Loans thatcanbereclaimed immediately iftheobjectives, especially thepurpose of
creating newjobs, arenotfulfilled.
(b) Amount ofsubsidy
NetcostinSkrmillions: Fiscal year1995/1996: 80
NetcostinSEKmillions: Calendar year1996: 70
Support isgranted toavariety ofsectors andrecipients andcannot bebroken down
perunit.
(c) Policy objective
Theprimary objective isregional aidindesignated areas. Thesecondary objective is
aidtoSMEs andaidtoemployment indesignated areas. Themain objective ofthescheme
istopromote development ofindustry andtocreate newemployment inthedesignated areas.
Inthese areas thecredit market islessdeveloped compared withother partsofSweden. ThisG/SCM/N/25/EEC
Page683
ismainly duetothelowalternative value ofthefixed assets. Regional Development Loans
canbeawarded inconnection withinvestments inbuildings, machinery, etc.
(d) Duration
Theprogramme commenced in1992. Duration formally decided forevery newfiscal
year.
(e) Statistical data
Thesupport isgranted toavariety ofprojects andsectors, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects.
(f) Legal basis
Thelegalprovisions arelaiddown intheGovernmental Ordinance (Förordningen om
regionalpolitiskt företagsstöd): SFS1990:642, and(from 1January 1997) inSPS1996:1570
(Förordning omändring iförordningen (1990:642) omregionalpolitiskt företagsstöd).
(g) Rules andconditions
Natural orjuridical persons operating inSweden andpublic authorities working with
viability incompetitive sectors onmarket conditions areeligible. Loans canalsobegranted
tonon-profit associations. Theloanisgranted discretionary andlimited toanamount actually
needed. Thefirmmust beprofitable andthefirmmust, asarule,increase employment. At
least40%ofthenewjobscreated ineachproject mustbereserved foreachsex.Loans atmarket
conditions, nosubsidy, risk-sharing. Theinterest rateoftheloanistheSwedish discount rate
plus4.25percentage points. Thestatefinancing, grant andloans, maynotexceed 70%inaid
area1and50%inaidarea2andstructural aidareas.
6.3 Regional Development Aid
(formerly Development Grant)
(a) Form ofsubsidy
Grants andconditional loans, which canbereclaimed iftheobjectives arenotfulfilled.
(b) Amount ofsubsidy
NetcostinSkrmillions: Fiscal year1995/1996: 102
NetcostinSEKmillions: Calendar year1996: 106
Support isgranted toavariety ofsectors andrecipients andcannot bebroken down
perunit.
(c) Policy objective
Theprimary objective isregional aidindesignated areas. Thesecondary objective is
aidtoSMEs andaidtoR&D indesignated areas. Themainobjective ofthescheme istocreate
newjobsinsmall firms bystimulating intangible investments.G/SCM/N/25/EEC
Page684
(d) Duration
Theprogramme commenced asfrom1July1990. Duration formally decided forevery
newfiscal year.
(e) Statistical data
Thesupport isgranted toavariety ofprojects andsectors, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects.
(f) Legal basis
Thelegalprovisions arelaiddown intheGovernmental Ordinance (Förordningen om
regionalpolitiskt företagsstöd): SFS1990:642, and(from 1January 1997) inSPS1996:1570
(Förordning omändring iförordningen (1990:642) omregionalpolitiskt företagsstöd).
(g) Rules andconditions
Natural orjuridical persons operating inSweden andpublic authorities adjusted to
conditions onthemarket. Insome cases aidcanalsobegranted tonon-profit making
associations.
Thenature oftheassisted projects canbeinvestments inpatent, licences, marketing
activities, development ofnewproducts, education, etc.Thegrant isawarded discretionary
according tothecalculated needineachindividual case, thesizeoftheinvestments etc.The
firmmustbeprofitable. Account should betaken toifthedevelopment measures promote an
increase inemployment. Atleast40%ofthenewjobscreated ineachproject mustbereserved
foreachsex.Maximal aidintensity is50% oftheinvestment costs. Maximal amount is
Skr500,000. Inspecial cases concerning service companies theamount canbehigher andthe
grant awarded without direct linktohardinvestments. Development grants maybecombined
withother forms ofstategrants oncondition thatthesumofthegrants doesnotexceed the
maximal intensity fordevelopment grants. Asfrom1January 1997themaximal grant is40%
forsmall andmedium-sized companies, i.e.companies withupto250employees, inregional
aidarea1.
6.4 Loans toRegional Investment Companies
(a) Form ofsubsidy
Loans. During thefirstyears theinterest ratemaybelower thanmarket rates, provided
thatthestatee.g.receives ashare ofthevalue added inthecompany afterabout tenyears.
(b) Amount ofsubsidy
Total amount ofgranted loans inSkrmillions: Fiscal year1995/1996: 0
(c) Policy objective
Theprimary objective isregional aidtodesignated areas. Thesecondary objective is
aidtoSMEs indesignated areas. Themainobjective istocreate newemployment bystimulating
private capital toengage incertain businesses intheaidareas. Theobjective isalsototake
advantage ofmanagement knowledge inorder topromote theexpansion ofsmall businesses.G/SCM/N/25/EEC
Page685
(d) Duration
Theprogramme commenced asfrom1July1982. Duration formally decided forevery
newfiscal year.
(e) Statistical data
(f) Legal basis
Thelegalprovisions arelaiddown intheGovernmental Ordinance (Förordningen om
regionalpolitiskt företagsstöd): SFS1990:642, and(from 1January 1997) inSPS1996:1570
(Förordning omändring iförordningen (1990:642) omregionalpolitiskt företagsstöd).
(g) Rules andconditions
EligibleareprivatelySwedishorforeignownedregionalinvestmentcompanies,working
withviability incompetitive sectors onmarket conditions. Thesizeoftheloanisrelated to
thecapital raised bytheshare holders. Decisions onloans toregional investment companies
aremade bythegovernment. During thefiscal year1995/1996 nosuchdecisions havemade.
6.5 Employment Grants
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
NetcostinSkrmillions: Fiscal year1995/1996: 196
NetcostinSkrmillions: Calandar year1996: 256
Support isgranted toavariety ofsectors andrecipients andcannot bebroken down
perunit.
(c) Policy objective
Theprimary objective isregional aidtodesignated areas. Thesecondary objective is
aidtoSMEs andemployment indesignated areas. Thescheme isaimed atcreation ofnew
employment byreducing theextracostsduring thefirstyears when taking onadditional labour.
(d) Duration
Theprogramme commenced asfrom1July1990. Duration formally decided forevery
newfiscal year.
(e) Statistical data
Thesupport isgranted toavariety ofsectors andrecipients, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects.G/SCM/N/25/EEC
Page686
(f) Legal basis
Thelegalprovisions arelaiddown intheGovernmental Ordinance (Förordningen om
regionalpolitiskt företagsstöd): SFS1990:642, and(from 1January 1997) inSPS1996:1570
(Förordning omändring iförordningen (1990:642) omregionalpolitiskt företagsstöd)..
(g) Rules andconditions
Eligible foraidarepublic authorities, natural orjuridical persons operating inSweden
andworking incompetitive sectors onmarket conditions. Insome casesaidcanalsobegranted
tonon-profit making associations. There isarequirement thatatleast40%ofthenewjobs
created shallbereserved foreachsex. Grants areawarded according totheamount ofnew
jobscreatedmeasuredinadditionalman-years(i.e.totalnetincreaseofworkinghoursperformed
byemployees incompanies applying andeligible foraid). Minor employment grants are
awarded afterapplication ifallconditions arefulfilled. Ifthenumber ofadditional years of
work isexceeding ten,theapplications areexamined fromthecompany ’seconomic point of
view.
Theaidintensity inregional aidarea1:AtotalsumofSkr200,000 peradditional year
ofwork allocated according toauniform scheme during afiveyearperiod.
Theaidintensity inregional aidarea2:AtotalsumofSkr120,000 peradditional year
ofwork allocated according toauniform scheme during afiveyearperiod.
Theallocation isdescribed inthefollowing table:
Year Aidarea1 Aidarea2
1 60,000 40,000
2 50,000 30,000
3 40,000 25,000
4 30,000 15,000
5 20,000 10,000
Total 200,000 120,000
6.6 Reduced Social Security Contributions
(a) Form ofsubsidy
Taxconcessions intheform ofreduced social security contributions.
(b) Amount ofsubsidy
NetcostinSkrmillions: Calendar year1996: 510
Support isgranted toavariety ofsectors andrecipients andcannot bebroken down
perunit.G/SCM/N/25/EEC
Page687
(c) Policy objective
Theprimary objective isregional aidtodesignated areas. Thesecondary objective is
aidtoSMEs andemployment indesignated areas. Themain objective istocreate new
employment andtomaintain employment incertain sectors inthemost disadvantaged areas
byreducing thecostoflabour. Anoverall aimistocompensate foradditional costs dueto
permanent geographical disadvantages intheform oflongdistances, lowpopulation density
andremote location.
(d) Duration
Inaidareas 1and2theduration isuntilandincluding theyear2000.
(e) Statistical data
Thesupport isgranted toavariety ofsectors andrecipients, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects.
(f) Legal basis
Thelegalprovisions arelaiddown intheAct(Lagomnedsättning avsocialavgifter
ochallmän löneavgift) SFS1990:912 andSFS1994:549 (Förordning omnedsättning av
socialavgifter).
(g) Rules andconditions
Inaidarea1andparts ofaidarea2thereduction istenpercentage points. Inthose
partsofthenorthernmost county ofNorrbotten which arenotincluded inaidarea1thereduction
isfivepercentage points.
Thesocial security contributions arereduced foremployers engaged inthefollowing
sectors inaidarea1:mining andquarrying (except iron,oreandmining), manufacturing (except
pulp, paper, iron, steelandferro-alloys), wholesaling ofmanufacturing goods, hotels and
restaurants andservice activities. Inaidarea2thereduction isonlyavailable inthemostsparsely
populatedareas.Inthesepartse.g.agriculturalandforestryactivitiesandcertainprivatebusiness
services areeligible. These activities areveryimportant forwomen ’semployment. Inthevast
majority ofcases theaidisawarded automatically. Reduced social security contributions may
becombined withemployment grants.
6.7 Regional Transport Aid
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
NetcostinSkrmillions: Fiscal year1995/1996: 384
Support isgranted toavariety ofsectors andrecipients andcannot bebroken down
perunit.G/SCM/N/25/EEC
Page688
(c) Policy objective
Theprimary objective isregional aidtodesignated areas. Theobjective istopartly
compensate forhightransport costsduetolongdistances tothemainmarkets. Itisimportant
tocreate newemployment andtomaintain employment inthose areas inSweden where the
costoftransport isconsiderably higher thanintherestofthecountry. Hereby thesecompanies
areputonmore equal footing when competing withcompanies situated closer tothelarge
markets.
(d) Duration
Thescheme commenced in1971. Duration formally decided forevery newfiscal year.
(e) Statistical data
Thesupport isgranted toavariety ofsectors andrecipients, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects.
(f) Legal basis
Thelegal provisions arelaiddown intheGovernmental Ordinance: SFS1980:803
(Förordningen omregionalpolitiskt transportstöd). SFS1996:1569 Förordning omändring
iförordningen (1980:803) omregionalpolitiskt transportstöd.
(g) Rules andconditions
Eligible areSwedish natural orjuridical persons, foreign company branches inSweden
orforeign natural persons living inSweden.
Theassisted projects: actually paiddomestic transport costsfromtheregional aidarea
forgoods thathavebeenproduced ormanufactured (processed) inthisarea(except forcertain
products likepulp, paper, metals, certain steelproducts andironore),transport costsforraw
materials thatshallbeprocessed inthetransport aidareaarealsoeligible. However, inprinciple,
materials fromoutside theaidareathatarealsoproduced intheaidareaarenoteligible. The
goods transported must behighly processed inorder tobeeligible. Thegrant isawarded
automatically afterapplication ifalltheconditions arefulfilled. Asfrom1July1995transport
aidwasterminated in12municipalities outside theregional aidareas approved byESA, i.e.
outside areas withpopulation density above 12.5inhabitants persquare kilometre.
Theregional aidareafortransport isdivided intofivezones. Thepercentages ofthe
transport costs thatarecovered appear inthefollowing table:
Distance in
kilometresTransport aid
Zone 1Transport aid
Zone 2Transport aid
Zone 3Transport aid
Zone 4Transport aid
Zone 5
251-400 10% 10% 10% 10% 10%
401-700 10% 20% 30% 35% 35%
701- 10% 20% 30% 35% 50%G/SCM/N/25/EEC
Page689
Asfrom1January 1997therulesandconditions werealtered asshown inthefollowing table:
Distance in
kilometresTransport aid
Zone 1Transport aid
Zone 2Transport aid
Zone 3Transport aid
Zone 4Transport aid
Zone 5
251-400 5% 5% 5% 5% 5%
401-700 5% 15% 25% 30% 30%
701- 5% 15% 25% 30% 45%
6.8 TheFund forNorthern Sweden
TheFund hasbeenoperating withtwodifferent types ofactivities:
- loans, including guarantees andconditional loans given primarily tosmall andmedium
sized companies within theindustrial andservice sector.
- guarantees andproject support given toinstitutions orprojects andresearch of
infrastructural character (forexample, research activities atuniversities andcollage,
foundations ofresearch bodies outside theuniversity sphere). Asfrom1994theFund
hasprimarily concentrated onloanoperations.
(a) Form ofsubsidy
Mainly loans atmarket conditions. Nosubsidies, risk-sharing. Conditional loans,
guarantees.
(b) Amount ofsubsidy
NetcostinSkrmillions: Calendar year1995: 25
NetcostinSkrmillions: Calendar year1996: 30
Support isgranted toavariety ofprojects andrecipients andcannot bebroken down
perunit.
(c) Policy objective
Theprimary objective isregional aidtodesignated areas. Thesecondary objective is
aidtoSMEs andR&D. Theaimofthefundistopromote development mainly ofSMEs, at
present, inthefivenorthernmost counties.
(d) Duration
Thescheme commenced in1961. Duration hasnotbeenspecified.
(e) Statistical data
Thesupport isgranted toavariety ofprojects andsectors, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects.G/SCM/N/25/EEC
Page690
(f) Legal basis
Government Decision 1961, lastrevision in1995.
(g) Rules andconditions
Expenditureeligibleforaidisproductdevelopment,marketing,fixedassetsandworking
capital. Ifloans from TheFund Northern Sweden arecombined withRegional Development
aid,theState financing mayonlyamount to70%ofinvestment costs inaidarea1and50%
inaidarea2andstructural aidareas. Thegovernment candecide thatthese levels maybe
exceeded ifthere isaspecial priority.
6.9 Programme forIndustrial Development inRegions ofRegional Policy Priority
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
NetcostinSkrmillions, Calendar year1996: 119
Support isgranted toavariety ofprojects andcannot bebroken down perunit.
(c) Policy objective
Theprimary objective oftheprogramme isregional aidindesignated areas. Theaim
istoimprove companies ownability todevelop through knowledge-raising programmes.
Secondary objective isaidforR&D activities.
(d) Duration
Programme started asfrom 1August 1994. Duration until31December 1999.
(e) Statistical data
Support isgranted toavariety ofprojects andsectors, therefore itisnotpossible to
present statistical datapermitting anassessment oftrade effects.
(f) Legal basis
ThelegalprovisionsarelaiddowninGovernmentdecisionno.7from10February1994.
(g) Rules andconditions
Support isallocated byNUTEK to22consortiums (programmes). These programmes
havebeenselected fromsubmitted proposals, according tocriteria suchasrelevance toindustry
andconnection toexternal sources ofknowledge (sizeandquality ofnetwork).
Theconsortiums include around 200companies andanumber ofresearch institutes
oruniversities. These areworking together toraisethelevelofknowledge incompanies. NoG/SCM/N/25/EEC
Page691
financial resources aredirected toanindividual company, buttotheconsortiums ascollective
bodies. Support toeachconsortium canamount to37.5% oftotalprogramme costs atmost.
Costs eligible foraidinclude personnel, materials andsupplies related toR&D.
Instruments andequipment costs areonlytoalimited extent supported.
6.10 European Union Structural Funds -Development within thegeographical objective area2
(a) Form ofsubsidy
(b) Amount ofsubsidy
NetcostinSkrmillions: Calendar year1996 (EUfunds): 3
(c) Policy objective
Aidtostructuraldevelopmentwithinthegeographicalobjectivearea2.Theprogrammes
aredominated bymeasures forsmall andmedium-sized enterprises. Priorities: industrial
development, localdevelopment andtourism, andskills development.
(d) Duration
Theprogramme isrunning from 1995 to1999.
(e) Statistical data
Funds aredistributed horizontally mainly tosmall andmedium-sized companies, and
trade effects areconsidered minimal.
(f) Legal basis
Council Regulation (EEC) No.2082/93.
(g) Rules andconditions
Funds fromtheEuropean Union aretobecomplemented bynational funds attherate
of30/70%. Programme No.3.2,Temporary Support toSmall Companies, isusedforSwedish
national co-financing. Co-financing isincluded inthetotalreported under thatprogramme.G/SCM/N/25/EEC
Page692
7. ENVIRONMENTAL AID
7.1 Investment Grant forEcologically-Sustainable Development
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
NetcostinSkrmillions: Calendar year1996: 3
Support isgranted toavariety ofprojects andcannot bebroken down perunit.
(c) Policy objective
Primary objective istoobtain higher levels ofenvironmental protection compared to
whatisdemanded byinternational standards.
(d) Duration
Theprogramme started inJuly1995 andwasterminated inJune 1996. Anew
programme, withbasically thesame objectives, started 1January 1997.
(e) Statistical data
Thesupport isgranted toavariety ofprojects andsectors, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects .
(f) Legal basis
Thelegalprovisions arelaiddown intheGovernmental Ordinances: SFS1995:1044
(Förordning ombidrag tillekologisk omställning), andfrom1January 1997inSFS1996:1378
(Förordning omstatligt investeringsbidrag förenekologiskt hållbar samhållsutveckling).
(g) Rules andconditions
Support isgranted toenvironmentally friendly investments. Thegrant istobegiven
toprojects thatarerational, cost-effective, thatproduce obvious environmental gains andthat
haveobvious effects onemployment. Support isnottocover more than30%oftheadditional
coststhatariseduetoupgrading ofinvestments intoamore environmentally friendly direction.
Investments cannot receive other forms ofstateaid.G/SCM/N/25/EEC
Page693
8. OTHER FORMS OFSUBSIDIES
8.1 State Subsidy forCivil Emergency Preparedness Supply
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
NetcostinSkrmillions: Fiscal year1995/1996: 2
Support isgranted toavariety ofprojects andcannot bebroken down perunit.
(c) Policy objective
Primary objective ismainly toprepare forthesupply ofgoods forthemobilization
ofthearmed forces.
(d) Duration
Theprogramme willbeterminated inMay1996.
(e) Statistical data
Thesupport isgranted toavariety ofprojects andsectors, therefore itisnotpossible
topresent statistical datapermitting anassessment oftrade effects.
(f) Legal basis
Thelegalprovisions arelaiddown intheGovernmental Ordinances: SFS1984:1129
(Förordningen omförsörjningsberedskapsstöd) and1992:1114.
(g) Rules andconditions
Government agencies, County councils andMunicipalities, andfirms owned bythem,
areeligible toCivilEmergency Preparedness grants foracquisition oftextiles andready-made
garments, shoes, leather, skinandfurs.Aprecondition isthattheacquisition mustnotbreak
therules ofcompetition within theEU.Civil Emergency Preparedness support isgranted to
thatamountwhichconstitutesthedifferencebetweenthecostsforthemostfavourableacquisition
inSwedenandthemostfavourableacquisitionoutsidetheEuropeanEconomicArea.Thesupport
canhowever onlybegranted, ifthedifference islessthanSkr200,000 orlessthan20%of
theacquisition value oftheforeign offer.G/SCM/N/25/EEC
Page694
APPENDIX
Thenetcostmethod
Theobjective ofthenetcosttogovernment (NCG) method istoobtain aconsistent measure
ofgovernment aid,where support from various instruments, i.e.grants, loans, guarantees, equity
injectionsandtaxconcessions,isaddedtogether.TheNCG-methodisbytheOECDinitsproject"Public
support toindustry ”.
Netcosts arecalculated asfollows:
Grants: Actual amounts paidoutminus repayments androyalties ifany.
Guarantees: Claims paidminus feesreceived andrecoveries.
Loans: Estimated capital costbased onthedifference between thegovernment
borrowing rateandactual interest payments received.
Equity capital: Estimated capital costbased onthegovernment borrowing rateanddividends
received.
Tax
concessions: Estimates ofrevenue forgone.
Capital against
Royalty: Estimated capital costbased onthedifference between thegovernment
borrowing rateminus royalty payments.
Itshould benoted thatthenetcostdoesnotcorrespond totheactual transfer offunds from
thegovernment tothefirms inanygiven year,i.e.theexpenditure asreported inthegovernment budget.
Instead thepurpose istoindicate thenetcosttogovernment ofsupport toindustry. Since imputed capital
costsonprevious loans andequity injections areincluded, thenetcostfigures toacertain extent reflect
pastpolicies. TheNCG-method isnotadirect guide todetermine theextent ofdistortion ofcompetition
nortoapproximate theultimate benefit toindustry. However, theNCG isauseful guide totheevolution
andthestructure ofgovernment support overtime.G/SCM/N/25/EEC
Page695
II. SUBSIDIES TOSWEDISH AGRICULTURE 1995/96
1. INTRODUCTION
Thisnotification covers direct subsidies andpayments totheagricultural sector between
1July1995and30June1996. Theamounts reported relate tonetcostsofexpenditure (i.e.repayments
ofaidduetorecoveries during thereporting yeararealsoincluded). Thefiscal yearof1995/96 was
extended bysixmonths andtherefore lasted 18months. Inthisnotification figures areonlypresented
forthefirst12months ofthe18month fiscal yearinorder tofacilitate comparisons withprevious
years. Inorder toclarify thatthenotified figures regard thefirst12month-period ofthefiscal year
1995/96, theperiod isdenominated "corresponding fiscal year1995/96". Onlygrants wholly orpartially
financed bynational funds arecovered bythenotification.
Thefigures arepresented irrespective ofwhether ornottheyshould beregarded assubsidies
notifiable under Article 25oftheWTO Agreement onSubsidies andCountervailing Measures. Costs
forgeneral agricultural education andinformation activities arenotincluded inthisnotification, with
theexception ofcertain focused programmes connected withgovernmental policies regarding the
environment andanimal disease control.
Thedescription ofthevarious schemes follows theoutline suggested byWTO. However,
estimates oftheeffects ofaid,e.g.ontrade, arenotavailable andareverydifficult toassess. Instead
some general information about production, consumption andtrade willbepresented separately ata
laterstage.
Inthisnotification, some support programmes havebeenadded thatpreviously havenotbeen
notified duetothelowamounts ofgrants oruncertainty about whether ornottheyshould bedefined
assubsidies ornot.Inthiscontext thegrants under heading "6.3 Education, information and
demonstration projects about maintenance ofbiodiversity andcultural heritage inforests" might be
noted asanexample ofanewly introduced programme forwhich anotification asasubsidy maybe
disputable.
Through Sweden 'saccession totheEuropean Community on1January 1995, theprevious
foodpolicy of1990hasbeenreplaced withtheCommon Agricultural Policy oftheCommunity. Some
support programmes fromtheprevious foodpolicy were, however, stillinpractice during fiscal year
1995/96.
TheSwedish Board ofAgriculture isthecentral administrative authority forimplementation
oftheagricultural policy.G/SCM/N/25/EEC
Page696
2. INCOME AND PRICE SUPPORT
2.1 Regional price additions
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr2.5million, national funds.
(c) Policy objective
Theimportance ofagriculture inthenorth ofSweden interms ofregional- andsecurity
policy justifies special support tothispartofthecountry. Thesupport should beclosely related
totheprofitability trends andshould givefarms inthenorth ofSweden incomes comparable
withfarms inother parts ofthecountry.
(d) Duration
Theprogramme wasrevised in1995 asaconsequence oftheSwedish membership
oftheEUandwasabolished asof1May1996.
(e) Statistical data
Estimates ofeffects ontrade arenotavailable.
(f) Legal basis
Governmental Ordinance SFS1985:672.
(g) Rules andconditions
Apartoftheregional support tonorthern partsofSweden wasgiven aspriceadditions
inorder tocompensate i.a.forhigher production andtransportation costsinthenorthern parts
ofSweden. Theamount ofsupport differed between different areas ofthenorthern region.
Thistypeofsupport hasgradually beenabolished andin1995/96 onlypaidtopigmeat. The
Swedish Board ofAgriculture wasresponsible fordisbursing theaid.
2.2 Price support tothereindeer sector
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr23million, national fundsG/SCM/N/25/EEC
Page697
(c) Policy objective
Reindeer husbandry isanintegrated partofSami culture. Without adequate support
thereindeer husbandry sector willbeseriously threatened withgrave consequences forthe
Sami people.
(d) Duration
Duration unlimited.
(e) Statistical data
Estimates ofeffects ontrade arenotavailable.
(f) Legal basis
Governmental Ordinance SFS1986:255.
(g) Rules andconditions
Theprice support isbased ontheslaughtered weight ofthereindeer. In1995/96 the
support wasSkr11perkiloforreindeer older thanoneyearandSkr17perkiloforcalves.
Anamount ofSkr0.5perkilowasearmarked formarketing ofreindeer meat. Thesupport
ispaidtoreindeer owners. TheSwedish Board ofAgriculture isresponsible fordisbursing
theaid.
2.3 Support tosugar production ontheisland ofGotland
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr12million, national funds.
(c) Policy objective
Theobjective ofthesupport istocompensate forcosts atthesugar factory located
ontheisland ofGotland.
(d) Duration
Thesupport inthisform wasabolished byJune1996.
(e) Statistical data
Estimates oftheeffects ontrade arenotavailable.
(f) Legal basis
Governmental Directions fortheuseofAppropriations forfiscal year1995/96.G/SCM/N/25/EEC
Page698
(g) Rules andconditions
According toaparliamentary decision support shallbegranted tothesugar factory
ontheisland ofGotland during atransitional period. Thesupport shallcompensate forextra
costsatthesugar factory. TheSwedish Board ofAgriculture isresponsible fordisbursing the
aid.
2.4 National support forfarming innorthern Sweden
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr279million, national funds.
(c) Policy objective
Thesevere natural conditions foragriculture innorthern Sweden, justify ahigher degree
ofsupport thanthemaximum amount normally provided foraccording toCouncil Reg.
(EC) 2328/91, inorder torender itpossible toreach anincome levelcomparable withfarmers
inother parts ofthecountry. Thesupport istocompensate forhigher production costs due
topoorsoilquality, highdegree oflandinclination andashort period ofgrowth.
(d) Duration
Thesupport covered theperiod from 1July1995, withtheexception ofsupport for
milk, which wasintroduced 1May1996.
(e) Statistical data
Estimates ofeffects ontrade arenotavailable.
(f) Legal basis
Governmental Ordinance SFS1996:93.
(g) Rules andconditions
Agriculture north ofthe62:dlatitude, along withcertain bordering areas south ofthis
latitude withsimilar climatological conditions, iscovered bytheprogramme. Theaidisbased
onthequantity produced ofslaughter pigs, sows, goats, laying hensandsoftfruits and
vegetables. Theaidforproduction ofcowmilkisbased onkilos ofproduction. Support is
alsogivenfortransportingcowmilkbetweenthefarmandprocessingcentre,whichisconsidered
asasalespromotion support according toArticle 142:3 intheAccession Treaty. Theaidfor
transporting milkisalsobased onthequantity inkilosofmilk, according toadifferentiated
scaledepending oneachregion 'ssupport eligibility. Thenational regional milkquotas, strictly
regulate thelevelofmilkproduction.G/SCM/N/25/EEC
Page699
National support Skrmillion
Milk 261
Pigmeat 5.4
Sows 2.4
Eggs 2.2
Goats 1
Softfruit&veg. 1.7
Potato 5.5
Transport aidforcows milk 0
2.5 Compensatory allowances
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr392million bynational funds andSkr160million EU
funds.
(c) Policy objective
Tosecure continued farming inareas oflessfavourable conditions ofproduction.
(d) Duration
Thesupport wasintroduced 1995 andhasbeeninpractice throughout thefiscal year
of1995/96.
(e) Statistical data
Estimates ofeffects ontrade arenotavailable.
(f) Legal basis
Governmental Ordinance SFS1995:1174.
(g) Rules andconditions
Support canbegranted inareas designated asmountain areas orlessfavoured areas
according tocriterions stipulated bytheEC.Compensatory allowances arebased onthequantity
ofowned cattle, ewesandgoats which arecalculated intounitsofsupport-eligibility according
toacertain transformation system thatalsoinsome areas caninclude areas ofpotato fieldsG/SCM/N/25/EEC
Page700
(support area1-4)andgrain fields (support area1-3).Thesumofcalculated animal unitsand
areaunitsresults intheunitsofsupport-eligibility. Thelevelofsupport depends onsupport
areaandtheintervals ofamounted units ofsupport-eligibility.
Levels ofsupport (Skr/units ofsupport-eligibility)
Units ofsupport-eligibility 0-60 61-120 121-
Support area1-3 1,640 1,435 615
Support area4 1,640 820 0
Support area5:a 800 400 0
Support area5:b 400 200 0G/SCM/N/25/EEC
Page701
3. EXPORT SUPPORT AND PROMOTION
3.1 Price compensation system forprocessed products
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr28million, national funds.
(c) Policy objective
Theaimofthesystem istocompensate domestic producers ofprocessed agricultural
products forthedifference between domestic prices andworld market prices foragricultural
rawmaterials usedintheproduction.
(d) Duration
Duration until31December 1995. Theamount ofsubsidy refers toexports thattook
place before 1January 1995.
(e) Statistical data
Estimates oftheeffects ontrade arenotavailable.
(f) Legal basis
Governmental Ordinances SFS1991:914.
(g) Rules andconditions
Thepricecompensationsystem(RÅK)forprocessedproductscoversproductsofsecond
andhigher transformation which often areamixture oftwoormore agricultural products.
Thecompensation toexported products wascalculated onbasisofthequantities ofagricultural
rawmaterials actually usedintheproduction oftheproducts exported. Allthese systems were
handled bytheSwedish Board ofAgriculture. Theprice compensation system wasabolished
inthisform asofthefirstofJanuary 1995 butreplaced byEU:s export refund support for
non-annex IIproducts.
3.2 Export promotion forprocessed foodproducts
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidyG/SCM/N/25/EEC
Page702
In1992Skr60million wasassigned asalump sumforafouryearperiod. In1994/95
thefundreceivedanadditionof1millionSkrearmarkedforpromotionofhorticulturalproducts.
In1995/96 afurther sumof17million wasaccorded. National funds.
(c) Policy objective
Theprimary objective istopromote aninternational marketing ofprocessed food
products. Asconcerns thesumof17million itispointed outthatorganically produced foods
should begiven particular consideration.
(d) Duration
Thesupport commenced in1992 andoriginally scheduled forafouryearperiod.
(e) Statistical data
Thesupport isgranted toavariety ofprojects, andestimates oftheeffects ontrade
arenotavailable.
(f) Legal basis
Governmental Directions fortheuseofAppropriations forfiscal year1995/96.
(g) Rules andconditions
Since theobjective istopromote aninternational marketing ofprocessed foodproducts
theaidisgranted tomeasures suchastobuild upknowledge andcompetence ofexport
promotion, marketing andtocarrythrough common market research andinformation activities.
Support isnotgranted toinvestments. "Styrgruppen förlivsmedelsexport" (Food fromSweden)
isresponsible fordisbursing theaid.G/SCM/N/25/EEC
Page703
4. STATE AIDFOR INVESTMENTS INAGRICULTURAL PRODUCTION
4.1 Land andbuilding rationalisation
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
Thenetcostforinternal andexternal rationalisation infiscal year1995/96 was
Skr0.9million, national funds.
(c) Policy objective
Toimprove thecompetitiveness ofagricultural holdings aspartoftherational
development ofagricultural production while maintaining farmers incomes.
(d) Duration
Nonewcommitments aremade under thisprogramme. Only legal undertakings by
thestatetocarry outagiven payment aredone.
(e) Statistical data
Estimates oftheeffects ontrade arenotavailable.
(f) Legal basis
Governmental Ordinances SFS1978:250.
(g) Rules andconditions
Theaidisusedforlandsurveying costsincertain areas ofSweden inconnection with
reparcelling offarms inorder toimprove structure. Nonewcommitments aremade under
thisprogramme. TheSwedish Board ofAgriculture isresponsible fordisbursing theaid.
4.2 Setting upaidtoyoung farmers
(a) Form ofsubsidy
Interest ratesubsidy.
(b) Amount ofsubsidy
Total amount ofsubsidy in1995/96 Skr36million, 50%financed bynational funds
and50%byEUfunds.G/SCM/N/25/EEC
Page704
(c) Policy objective
Toenable young persons whointend topractice farming astheirmain occupation,
totake-over agricultural holdings.
(d) Duration
Theprogramme wasrevised asof1January 1995 asaconsequence oftheSwedish
membership oftheEU.
(e) Statistical data
Estimates oftheeffects ontrade arenotavailable.
(f) Legal basis
Governmental Ordinances SFS1990:980 andSFS1995:1195.
(g) Rules andconditions
Aidmaybegranted topersons thathavenotreached theageof35,whointend to
practice farming astheirmainoccupation. Thedefinition farming alsoincludes other activities
suchasforestry andtourism asacomplement tofarming. Thepurpose oftheaidistocover
thecapital costs andtherisksconnected withtheresponsibilities ofyoung farmers. Farmers
intheentire country canreceive support butspecial considerations aregiven toholdings in
lessfavoured areas. Theapplicants must haveasufficient level ofvocational qualification
(vocational experience andtraining). Theapplicants must alsohavefarming astheirmain
occupation. Aidisgiven asa5%interest-rate subsidy foraperiod offiveyears. Maximum
installation aidforaperiod offiveyears isSkr200000.Theamount canbereduced depending
ontheapplicant 'sassets. TheSwedish County Administrative Boards areresponsible for
disbursing theaid.
4.3 Support formaintenance ofstateowned agricultural leasehold properties inmarginal
mountain areas
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr1.6million, national funds.
(c) Policy objective
Supportisgivenforinvestmentsinandmaintenanceofbuildingsandotherconstructions
andforinn-keepingonstateownedagriculturalleaseholdpropertiesinmarginalmountainareas.G/SCM/N/25/EEC
Page705
(d) Duration
Grants havebeenpaidbefore 1995/96 buthavenotpreviously beennotified under
Article 25oftheWTO Subsidies Agreement. Duration unlimited.
(e) Statistical data
Estimates ofeffect ofaidontrade arenotavailable.
(f) Legal basis
Governmental Directions fortheuseofAppropriations forfiscal year1995/96.
(g) Rules andconditions
Support isgiven forinvestments inandmaintenance ofbuildings toleaseholders who
ownorbuild homes needed fortheleasehold. Amaximum ofSkr4000isalsogranted for
costsofinn-keeping. TheSwedish County Administrative Boards areresponsible fordisbursing
theaid.G/SCM/N/25/EEC
Page706
5. STATE AID TOCOMPENSATE FOR DAMAGE AFFECTING AGRICULTURAL
PRODUCTION ORMEANS OFPRODUCTION
5.1 Support foranimal welfare
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr5million, national funds.
(c) Policy objective
Tosupportdevelopmentofnewimprovedhumanemethodsofkeepingdomesticanimals.
(d) Duration
Grants havebeenpaidbefore 1995/96 buthavenotpreviously beennotified under
Article 25oftheWTO Subsidies Agreement. Duration unlimited.
(e) Statistical data
Estimates oftheeffects ontrade arenotavailable.
(f) Legal basis
Governmental Ordinance SFS1988:539.
(g) Rules andconditions
Support ismainly paidtotheSwedish University ofAgriculture fordeveloping new
improvedmethodsofkeepingdomesticanimals.TheSwedishBoardofAgricultureisresponsible
fordisbursing theaid.
5.2 Support foranimal health care
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr21million, national funds.
(c) Policy objective
Toenhance animal- andhuman health byprevention, diagnosis andcontrol ofinfectious
animal diseases.G/SCM/N/25/EEC
Page707
(d) Duration
Grants havebeenpaidbefore 1995/96 buthavenotpreviously beennotified under
Article 25oftheWTO Subsidies Agreement. Duration unlimited.
(e) Statistical data
Estimates oftheeffects ontrade arenotavailable.
(f) Legal basis
Governmental Ordinance SFS1985:343.
(g) Rules andconditions
Supportispaidtoorganisationsforanimalhealthcare,animalhealthcontrolandkeeping
records ofanimal diseases. TheSwedish Board ofAgriculture isresponsible fordisbursing
theaid.
5.3 Compensation forcostandlosses connected withcontrol ofepizootic diseases
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr57million, national funds.
(c) Policy objective
Compensate animal owners foreconomic losses ifanepizootic disease inaccordance
withtheSwedish legislation issuspected ordiagnosed inaherdorflock.
(d) Duration
Duration unlimited.
(e) Statistical data
Estimates ofeffects ontrade arenotavailable.
(f) Legal basis
Epizootilaw SFS1980:369, Governmental Ordinance SFS1980:371.
(g) Rules andconditions
Ifanepizootic disease inaccordance withtheSwedish legislation issuspected or
diagnosed inaherdorflock, themeasures taken often cause economical losses fortheanimal
owner. Thegeneral principle forcompensation ofdiseases under epizootic actisthatthefarmerG/SCM/N/25/EEC
Page708
should befullycompensated forlosses duetodecisions taken inaccordance withthislegislation.
Economical losses caused bytherestrictions ontheherd, slaughtered animals, lossofincome
andsanitary measures arefully compensated for.TheSwedish Board ofAgriculture is
responsible fordisbursing theaid.
5.4 Compensation forcosts andlosses connected withcontrol ofsalmonella
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr12million, national funds.
(c) Policy objective
Preventing thatsalmonella isspread andtoprotect public health.
(d) Duration
Duration unlimited.
(e) Statistical data
Estimates ofeffects ontrade arenotavailable.
(f) Legal basis
ThelawSFS1983:738 andGovernmental Ordinance 1984:306.
(g) Rules andconditions
Farmers whose animals arediagnosed asbeing affected bysalmonella arepartly
(50-70%) compensated bythegovernment foreconomical losses caused bytheeffects ofthe
restrictions onherd, slaughter ofanimals, lossofincome andsanitary measures. Thecostof
thesalmonella programme canbesplitintotwomain components, oneisthecontinuous
surveillance andpreventive measure needed andthesecond isthecostoferadicating salmonella
outbreak. Theaidisonlyavailable inconnection withsalmonella outbreak andduetodecisions
taken inaccordance withlegislation. TheSwedish Board ofAgriculture isresponsible for
disbursing theaid.
5.5 Support foranimal disease control
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr49million, national funds.G/SCM/N/25/EEC
Page709
(c) Policy objective
Tofacilitate foranimal owners toadhere toanimal disease control programmes.
(d) Duration
Grants havebeenpaidbefore 1995/96 buthavenotbeennotified. Duration unlimited.
(e) Statistical data
Estimates ofeffects ontrade arenotavailable.
(f) Legal basis
Governmental Directions fortheuseofAppropriations forfiscal year1995/96.
(g) Rules andconditions
Supportispaidtoorganisationsinchargeofanimaldiseasecontrolprogrammes.Farmers
thataffiliate theirherds tothecontrol programme aresubsidized regarding sampling, slaughter
etc.TheSwedish Board ofAgriculture isresponsible fordisbursing theaid.
5.6 Support foranimal autopsies
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr2.2million, national funds.
(c) Policy objective
Tosurvey anddocument theanimal disease situation inSweden. Agoalhasbeenset
of4000performed animal autopsies eachyear.
(d) Duration
Grants havebeenpaidbefore 1995/96 buthavenotpreviously beennotified under
Article 25oftheWTO Subsidies Agreement. Duration unlimited.
(e) Statistical data
Estimates ofeffects ontrade arenotavailable.
(f) Legal basis
Governmental Directions fortheuseofAppropriations forfiscal year1995/96.G/SCM/N/25/EEC
Page710
(g) Rules andconditions
Support ispaidto"Svenska Djurhälsovården" (organisation foranimal health care)
fordocumenting andsurveying theanimal disease situation inSweden byanimal autopsies
throughout thecountry. TheSwedish Board ofAgriculture isresponsible fordisbursing the
a0^O8^D
5.7 Compensation forlosses asaconsequence oftheTjernobyl accident
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr17million, national funds.
(c) Policy objective
Compensate forlosses duetoradioactive contamination ofmeat.
(d) Duration
Duration unlimited.
(e) Statistical data
Estimates ofeffects ontrade arenotavailable.
(f) Legal basis
Governmental Ordinance SFS1994:246.
(g) Rules andconditions
Thestatecompensates reindeer keepers andfarmers forpreventive measures taken,
suchasfeeding theanimals withuncontaminated foodorother measures toreduce radiocesium
toanacceptable level. Asalastresort thestatecompensates forlosses duetotheTjernobyl
accident through buying radioactive contaminated meatatthenormal market priceforsimilar
uncontaminated meatandafterwards destroying it.The Swedish Board ofAgriculture andthe
Swedish County Administrative Boards areresponsible fordisbursing theaid.
5.8 Compensation toowners ofreindeer hurtorkilled bylarge predators
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy
Second halfof1995Skr7million; firsthalfof1996Skr22million. National funds.G/SCM/N/25/EEC
Page711
(c) Policy objective
Compensate forlosses connected withtheprohibition bylawtohuntlarge predators
(bears, wolves, wolverines, lynxandeagles).
(d) Duration
Anewsystem forcompensation hasbeenintroduced asof1January 1996.
(e) Statistical data
Estimates ofeffects ontrade arenotavailable.
(f) Legal basis
Governmental Ordinance SFS1976:430 andasof1January 1996, Governmental
Decision.
(g) Rules andconditions
Thestateisnotthelegal owner ofthepredators buthasbylawprohibited hunting
oftheseanimals. Theaidshould beseenasacompensation forlosses connected withthishunting
restriction.
(i) Accordingtothesystempreviousto1January1996,reindeerkeeperswerecompensated
foranimals hurtorkilled bypredators. Thevalue ofthereindeer wasestimated and
given asacompensation totheowner. Compensation wasbased ondataofidentified
andkilled orhurtanimals. TheSwedish Environmental Protection Agency was
responsible fordisbursing theaid.
(ii) Asof1January 1996 anewsystem ofcompensation hasbeen implemented.
Compensation isbased onestimates ofthequantity reindeer eachrespective specie
ofpredators willkillorhurtinagiven reindeer husbandry area.Compensation isgiven
toreindeer owners through eachreindeer community, depending onthequantity of
registered predators within thegrazing area.Inventories ofpredators arealsofinanced
bythisgrant. Insome cases direct compensation toreindeer owners isalsogiven after
severe mass-killings ofreindeer. TheSami Parliament isresponsible fordisbursing
theaid.
5.9 Support forcosts from damages caused bywildanimals
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr12million, national funds.G/SCM/N/25/EEC
Page712
(c) Policy objective
Tosupport farmers andfishermen forcosts connected withtheprohibition bylawto
huntcertain animals.
(d) Duration
Duration unlimited.
(e) Statistical data
Estimates ofeffects ontrade arenotavailable.
(f) Legal basis
Governmental Ordinances SFS 1987:905 andSFS 1976:430 (abolished asof
1January 1996).
(g) Rules andconditions
Thestatehas,forreasons ofpreservation, prohibited general hunting ofcertain wild
animals. Support isgiven tofarmers andfishermen forpreventive measures against damages
caused bythese wild protected animals. Thesupport covers partofthederived costs.
Compensation hasalsobeenpaidfordamages orlosses caused bywildprotected animals under
thecondition thatpreventive measures havenotbeenpossible. Support andcompensation has
onlybeengranted ifprotective authorized hunting hasnotbeenpossible. TheSwedish County
Administrative Boards areresponsible fordisbursing theaid.G/SCM/N/25/EEC
Page713
6. SUPPORT OFLANDSCAPE CONSERVATION AND BIODIVERSITY
6.1 Support oflandscape conservation
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr246million, national funds. Some partofthesupport
maybefinanced bytheEU,towhatextent ishowever notyetdetermined.
(c) Policy objective
Maintaining biodiversity ofsemi-natural grasslands andremnants ofagrihistorical value
inrural landscapes.
(d) Duration
Duration unlimited, theprogramme isbeing gradually wound upasaconsequence
oftheSwedish membership oftheEU.
(e) Statistical data
Estimates ofeffect ofaidontrade arenotavailable.
(f) Legal basis
Governmental Directions fortheuseofAppropriations forfiscal year1995/96.
(g) Rules andconditions
Grants tospecial measures inorder tomaintain biodiversity ofsemi-natural grasslands
andremnants ofagrihistorical value inrurallandscapes. Support ispaidforgrazing andmoving
sward inselected meadows andpastures. Grants arealsopaidtofarmers forkeeping historical
remnants inorder. TheSwedish County Administrative Boards areresponsible fordisbursing
theaid.
6.2 Support formaintenance ofbiodiversity andoftheagricultural countryside
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr31million, 50%financed bytheEUand50%bynational
funds.G/SCM/N/25/EEC
Page714
(c) Policy objectives
(i) Tomaintain biodiversity andcultural heritage values intheagricultural
landscape.
(ii) Toreduce thenegative effects ontheenvironment byagriculture in
environmentally sensitive areas, torestore biodiversity inthese areas andto
protect animals oflocalbreeds indanger ofextinction.
(iii) Promotion oforganic farming.
(d) Duration
Thisfive-year programme willend31December 1999.
(e) Statistical data
Estimates ofeffect ofaidontrade arenotavailable.
(f) Legal basis
Council Regulation (EEC) 2078/92, Commission Regulation (EC) 746/96 and
Governmental Ordinance SJVFS 1995:133.
(g) Rules andconditions
Grants aregiven toorganisations andtheSwedish County Administrative Boards for
distribution ofsupport toeducation, information anddemonstration projects within the
programme. TheSwedish Board ofAgriculture isresponsible fordisbursing theaid.
6.3 Education, information anddemonstration projects about maintenance ofbiodiversity
andcultural heritage inforests
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr28million, 50%financed bytheEU.
(c) Policy objective
Toenhance knowledge andawareness about ecology, environmental considerations
inforestry andcultural heritage among farmers thatcombine agriculture withforestry, inorder
topreserve orenrich biodiversity inforests andtoprotect valuable cultural heritage.
(d) Duration
Afive-year programme ending 1999, withgradually reduced grants.G/SCM/N/25/EEC
Page715
(e) Statistical data
Estimates ofeffect ofaidontrade arenotavailable.
(f) Legal basis
Council Regulation (EEC) 2078/92 andGovernmental Directions fortheuseof
Appropriations forfiscal year1995/96.
(g) Rules andconditions
Farmers withaminimum ofonehectare offorest andonehectare offarmland are
targeted bytheprogramme. Theprogramme consists ofindividual guiding, group guiding,
courses, information andpreparing demonstration areas ofenvironmentally andecologically
adapted forestry andforestry withconsideration ofvaluable cultural heritage. Grants aregiven
totheSwedish County Forestry Boards. TheSwedish Board ofAgriculture isresponsible for
disbursing theaid.
6.4 Support formaintenance ofanopenlandscape innorthern Sweden andinforest regions
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr541million, 50%financed bynational funds and50%
byEUfunds.
(c) Policy objective
Topromote agricultural landuseandfarming practices thatarecompatible with
maintenance oftheagricultural landscape andthecountryside inthenorthern partofSweden
andintheforest regions ofsouthern andcentral Sweden.
(d) Duration
Ageneral five-year programme through 1995and1999. Individual recipients signup
forfiveyearprogrammes withastartatanytimeduring thisperiod.
(e) Statistical data
Estimates ofeffect ofaidontrade arenotavailable.
(f) Legal basis
Council Regulation (EEC) 2078/92 andGovernmental Ordinance SJVFS 1995:133.
(g) Rules andconditions
Extensive useofagricultural acreage byfarms withanimal husbandry ofcattle, sheep
andgoats areeligible foraidinnorthern Sweden, support area1-4andinforest areasofsouthern
andcentralSweden.SupportisgivenforextensivefarmingpracticesespeciallyonnaturalpastureG/SCM/N/25/EEC
Page716
andinproduction ofhayansilage from grass. Thescheme contains restrictions ontheuse
ofpesticides, andinsome parts, restrictions onfertilizers, irrigation andother landimproved
inorder toenhance bio-diversity. Theacreage must yearly beactively harvested orgrazed.
Therequisites arestricter forfarmers insouthern Sweden thanfortheirnorthern counterparts.
TheSwedish Board ofAgriculture isresponsible fordisbursing theaid.
6.5 Support forpromotion oforganic production
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr106million, 50%financed bynational funds and50%
byEUfunds.
(c) Policy objective
Toincrease organic production inSweden inorder toachieve amore sustainable and
environmentally-friendly foodproduction. In1994, theSwedish Parliament decided that10%
(300000ha)ofthearable landshould beconverted intoorganic farming bytheyear2000.
In1994, theacreage oflandunder organic production thatwascontrolled andapproved was
56000ha.
(d) Duration
Ageneral five-year programme through 1995and1999. Individual recipients signup
forfiveyearprogrammes withastartatanytimeduring thisperiod.
(e) Statistical data
Estimates ofeffect ofaidontrade arenotavailable.
(f) Legal basis
Council Regulation (EEC) 2078/92 andGovernmental Ordinance SJVFS 1995:133.
(g) Rules andconditions
Anannual premium perhectare isgranted tofarmers whoareconverting to,or
continuing toapply organic farming methods. Organic plant production istocomply with
CouncilRegulation(EC)2092/91onorganicproductionofagriculturalproducts.Organicanimal
husbandry isto,inprinciple, comply withtherules laiddown byIFOAM (International
Federation ofOrganic Agriculture Movement). Thelevels ofcompensation correspond to
calculated lossofincome when changing overfrom conventional toorganic farming. There
isalsoanincentive partincluded inthecompensation. TheSwedish Board ofAgriculture is
responsible fordisbursing theaid.G/SCM/N/25/EEC
Page717
6.6 Support fortraditional, environmentally friendly cultivation oflocalvarieties ofbrown
beans ontheisland ofÖland
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr2million, 50%financed bynational funds and50%by
EUfunds.
(c) Policy objective
Tomaintain traditional cultivation of1200hectares ofbrown beans ontheisland
ofÖland asanimportant partofthecultural heritage whilst introducing orsafeguarding an
environmentally friendly technique ofcultivation andthereby decrease nitrogen leakage and
pesticide use.Toprevent intensive cultivation ofgrain andtoconserve insitulocalvarieties
ofbrown beans.
(d) Duration
Ageneral five-year programme through 1995and1999. Individual recipients signup
forfiveyearprogrammes withastartatanytimeduring thisperiod.
(e) Statistical data
Estimates ofeffect ofaidontrade arenotavailable.
(f) Legal basis
Council Regulation (EEC) 2078/92 andGovernmental Ordinance SJVFS 1995:133.
(g) Rules andconditions
Aidisgranted forcultivation oflocal varieties ofbrown beans which aregrown in
thetraditional cultivation areaoftheisland ofÖland. Thecropmustnotbefertilized withmore
than30kgNperhectare andyear, andnoinsecticides orfungicides must beused. Certain
mechanical methods ofreducing theuseofherbicides must beemployed. Other restrictions
onlandusearealsostipulated byenvironmental considerations. Theaidamounts toECU 250
perhectare. TheSwedish Board ofAgriculture isresponsible fordisbursing theaid.
6.7 Support forconservation oflocalbreeds threatened byextinction
(a) Form ofsubsidy
Grant.G/SCM/N/25/EEC
Page718
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr2million, 50%financed bynational funds and50%by
EUfunds.
(c) Policy objective
Toimprove theconditions forcontinued breeding inorder toconserve thegenetic
resources ofdomestic animals asanimportant contribution tobiodiversity aswellasthenational
heritage.ThelongtermobjectiveistoconserveallSwedishlocalbreedsthreatenedbyextinction.
Thenumber ofanimals areestimated tobebetween 2000and4000units.
(d) Duration
Ageneral five-year programme through 1995and1999. Individual recipients signup
forfiveyearprogrammes withastartatanytimeduring thisperiod.
(e) Statistical data
Estimates ofeffect ofaidontrade arenotavailable.
(f) Legal basis
Council Regulation (EEC) 2078/92 andGovernmental Ordinance SJVFS 1995:133.
(g) Rules andconditions
Thelocalbreeds shallbeontheEUlistofbreeds threatened byextinction. Thebreeds
covered bytheprogramme areonlyfound inSweden. Aplanforonthefarmbreeding work,
includingmeasurestoconservetheanimalbreeds,originalcharacteristicsandgeneticdiversions,
mustbeestablished andfollowed. Animals andbreeders thatarepartoftheprogramme need
tocomply withconditions thatwillensure thatthebreeds arekeptpure. Aidisgranted with
ECU 91perlivestock unit.Forconversion ofcows, goats andsheep intolivestock unitsthe
coefficients inCouncil Regulation (EEC) 2078/92 areapplied. Aidwillonlycover partofthe
income losscompared tomodern more productive breeds. TheSwedish Board ofAgriculture
isresponsible fordisbursing theaid.G/SCM/N/25/EEC
Page719
7.1 State guarantees onloans
(a) Form ofsubsidy
Guarantees onloans.
(b) Amount ofsubsidy
Thenetcostforlosses thatincur inconnection withStateguarantees during fiscal year
1995/96 wasapprox. Skr4million (losses 17million andfees13million).
(c) Policy objective
Theobjective istopromote improved effectiveness intheagricultural holding.
(d) Duration
Asfrom1July1995newstateguarantees onloans aretobegranted onlytohorticultural
enterprises.
(e) Statistical data
Estimates ofeffects ontrade arenotavailable.
(f) Legal basis
Governmental Ordinance SFS1978:250.
(g) Rules andconditions
Farm enterprises canobtain stateguarantees forcertain types ofloans when thefarmer
setsuptheholding orimproves theeffectiveness intheagricultural holding. Theguarantee
covers 75%oftheloanandusually makes iteasier forthefarmer togetaloaninabank. The
farmer paysafeeof1%ofthecapital guaranteed tocover possible losses forthestateon
guaranteed loans. Themobilisation ofaguarantee issubject tospecific conditions laiddown
byacontract. Several conditions havetobefulfilled inorder toobtain astateguarantee. The
investment should i.abedesirable fromapublic point ofview(better environment, production
balance etc.). Thepossibility foreffective andprofitable production isconsidered. Noguarantee
isgiven toincreased production beyond family farmsizenortobigunits withpork, eggor
poultry production. TheSwedish County Administrative Boards areresponsible forthe
administration oftheguarantees.G/SCM/N/25/EEC
Page720
8.1 State aidforfarmrelief services
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr85million, national funds (reduced levels ofsubsidy
asof1July1995).
(c) Policy objective
Improved working conditions forfarmers.
(d) Duration
Appropriations havebeengranted tothefarmrelief service untilendof1996.
(e) Statistical data
Estimates ofeffects ontrade arenotavailable.
(f) Legal basis
Governmental Ordinance SFS1994:1832.
(g) Rules andconditions
Support isgiven toprivate farmrelief service organisations tosubsidise theirservices
tofarmers. Theservices areavailable forproducers ofmilk, pork, sheepmeat, eggs, poultry
goatmeat andgoatmik. Relief isavailable forholiday-relief, child-care, commission oftrust,
illness, accident, death ortemporary parent 'sallowance. Thefarmer paysforthetimethat
isactually usedontheholding. Each farmer issubsidised toamaximum of90daysperyear
(eight hours aday). Thesubsidy isabout 50%oftheactual cost. Forillness, accident or
temporary parent 'sallowance thefarmers aresubsidised forthefirsttendayswith60%of
theactual cost.TheSwedish Board ofAgriculture isresponsible fordisbursing theaid.G/SCM/N/25/EEC
Page721
9.1 State aidforadaptation ofnewactivities
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr78million, national funds.
(c) Policy objective
Facilitating thetransformation ofspecified farmed arable landtodeciduous forest,
wetland orbio-energy forest inaccordance withthefoodpolicy adopted in1990.
(d) Duration
Duration untilendofJune1996.
(e) Statistical data
Estimates ofeffect ontrade arenotavailable.
(f) Legal basis
Governmental Ordinance 1990:941.
(g) Rules andconditions
Support wasgiven tofarmers forrestoring ofwetlands, plantation ofdeciduous or
semideciduous forest andplantation ofbio-energy forest onprevious farmed arable land. The
Swedish Board ofAgriculture isresponsible fordisbursing theaid.G/SCM/N/25/EEC
Page722
10.1 Support fordevelopment ofthereindeer husbandry sector
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr10million, national funds.
(c) Policy objective
Tobalance thenumber ofreindeer withthecarrying capacity ofthereindeer pasture
andmaintain orincrease theincome levelforthereindeer enterprises.
(d) Duration
Duration unlimited.
(e) Statistical data
Estimates ofeffects ontrade arenotavailable.
(f) Legal basis
Governmental Directions fortheuseofAppropriations forfiscal year1995/96.
(g) Rules andconditions
Theaidisageneral support todevelop thereindeer husbandry. Theuseofthesupport
isdecided afteryearly negotiations between theSwedish Board ofAgriculture andtheSami
Parliament. Support hasbeengiven forfencing, registration ofland-use, development ofa
newsystemofpasture-surveyandvariousadvisorymeasures.TheSwedishBoardofAgriculture
isresponsible fordisbursing theaid.G/SCM/N/25/EEC
Page723
11.1 Health careforfarmers
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr25million, national funds.
(c) Policy objective
Themain objective istoreduce occupational hazards andtoimprove thehealth of
farmers.
(d) Duration
Thesupport wasabolished asof31December 1996.
(e) Statistical data
Estimates ofeffects ontrade arenotavailable.
(f) Legal basis
Governmental Directions fortheuseofAppropriations forfiscal year1995/96.
(g) Rules andconditions
Support isgiven toSkogs ochLantbrukshälsan ABwhich isanonprofit health service
organisation owned bytheFederation ofSwedish Farmers. Thesupport isusedforinformation
activities andforhealth screenings offarmers.G/SCM/N/25/EEC
Page724
12.1 Early retirement scheme formilkproducers
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr64million, national funds.
(c) Policy objective
Toreduce overproduction ofmilkandmake iteconomically possible formilkproducers
between 60and65years ofagetoquitmilkproduction.
(d) Duration
Thescheme came intoforce in1983 andwasabolished by31December 1996.
(e) Statistical data
Estimates ofeffects ontrade arenotavailable.
(f) Legal basis
Governmental Directions fortheuseofAppropriations forfiscal year1995/96.
(g) Rules andconditions
Support ispaidtofarmers thatarebetween 60and65years oldwhocease toproduce
milk. Farmers whoparticipate inthescheme arenotpermitted toreplace milkproduction with
anincrease inother kinds ofanimal production except suckling cows. Theaidispaidona
monthly basis untiltheageof65.Theamount ofaidisrelated tothequantity soldinabase
year. Theaidamounts toSkr0.75perkiloofmilkuptoamaximum of100000kilos. The
average farmer receives Skr55000peryear. TheSwedish Board ofAgriculture isresponsible
fordisbursing theaid.G/SCM/N/25/EEC
Page725
13.1 Compensation forhighcosts ofveterinary services
(a) Form ofsubsidy
Grants.
(b) Amount ofsubsidy
Corr. fiscal year1995/96 Skr7million, national funds.
(c) Policy objective
Tokeeptheveterinary costsatareasonable levelforfarmers wholivealongdistance
from veterinary service.
(d) Duration
Duration unlimited.
(e) Statistical data
Estimates ofeffects ontrade arenotavailable.
(f) Legal basis
Governmental Ordinance SFS 1975:539. Asof1January 1995 replaced by
SFS1994:1313.
(g) Rules andconditions
District veterinaries attending remote areas arecompensated inorder tokeep the
veterinary costs atareasonable level forfarmers wholivealongdistance from veterinary
service. TheSwedish County Administrative boards areresponsible fordisbursing theaid.G/SCM/N/25/EEC
Page726
III. SUBSIDIES TOSWEDISH FISHERY 1995/96
INTRODUCTION
Inthecourse of1995/96, Swedish administration haschanged itsbudgetary cycle fromfiscal
tocalendar years. Asatransitional measure, thebudget for1995/96 covers an18-month period, starting
1July1995 andending 31December 1996. Thisnotification covers direct subsidies tothefishery
sector in1995/96. Theamounts reported relate ingeneral tocommitments made bythecompetent
authorities during the12month fiscal year1995/96 (1July1995-30 June1996) andalsoduring actual
calendar year1996. Hence, thefigures areoverlapping bysixmonths andshould therefore notbe
added. Asfor"State aidfordamages tofishing gear" theamounts reported relate tonetexpenditure,
i.e.thecompensation minus thefeereceipts. Onlygrants wholly orpartially financed bynational funds
arecovered bythenotification.
Thedescription ofthevarious schemes follows theoutline suggested bytheWTO. However,
effects ontrade aredifficult toassess andthenotification contains, butforafewaidschemes, no
information asregards effects ontrade.
TheNational Board ofFisheries isthecentral administrative authority forimplementation of
thefishery policy.G/SCM/N/25/EEC
Page727
1. Investment aidtofishing enterprises
1(a) AidforFleet Renewal andModernization ofFishing Vessels
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy (total commitments)
1995/96: Skr16,155,000 (community funds)
Skr4,875,000 (national funds)
1996: Skr42,303,000 (community funds)
Skr12,230,000 (national funds)
(c) Policy objective
Tostrengthen thestructure andtodevelop economically viable enterprises inthesector.
(d) Duration
Stateaidtofisheries isfromthedateofEUaccession (1January 1995) subject tothe
rules andconditions which arestipulated inCouncil Regulation (EC) No.3699/93.
(e) Statistical data
Estimated number ofrecipients oftheaid1995 and1996: approx. 190.
Information concerning effects ontrade isnotavailable.
(f) Legal basis
Governmental Ordinance onfishing, aquaculture andfisheries (SFS 1994:1716,
1January 1995).
(g) Rules andconditions
Recipients: Fishing enterprises.
Categories ofexpenditures eligible foraid: selective gear, RSW tanks, safety
equipment, etc.
1.(b) AidforAdjustment ofFishing Effort
(a) Form ofsubsidy
Grant.G/SCM/N/25/EEC
Page728
(b) Amount ofsubsidy (total commitments)
1995/96: Skr12,373,000 (community funds)
Skr12,373,000 (national funds)
1996: Skr13,500,000 (community funds)
Skr13,500,000 (national funds)
(c) Policy objective
Toachieve asustainable balance between resources andtheirexploitation.
(d) Duration
Stateaidtofisheries isfromthedateofEUaccession subject totherulesandconditions
which arestipulated inCouncil Regulation (EC) No.3699/93.
(e) Statistical data
Estimated number ofrecipients oftheaid1995 and1996: 28
Information concerning effects ontrade isnotavailable.
(f) Legal basis
Governmental Ordinance onfishing, aquaculture andfisheries (SFS 1994:1716,
1January 1995).
(g) Rules andconditions
Recipients: fishing enterprises.
Categories ofexpenditures eligible foraid:
- scrapping
- permanent transfer tothirdcountry
Maximumpossibleaidintensity:ParticipationratesarestipulatedinCouncilRegulation
(EC) No.3699/93 andintheSPD.
2. Investment AidtoAcquaculture Enterprises
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy (total commitments)
1995/96: Skr5,877,000 (community funds)
Skr1,654,000 (national funds)
1996: Skr13,616,000 (community funds)
Skr4,040,000 (national funds)G/SCM/N/25/EEC
Page729
(c) Policy objective
Toimprove thestructure andtodevelop econonomically viable enterprises inthesector.
(d) Duration
Stateaidtofisheries isfromthedateofEUaccession subject totherulesandconditions
which arestipulated inCouncil Regulation (EC) No.3699/93.
(e) Statistical data
Estimated number ofrecipients oftheaid1995 and1996: 62
Information concerning effects ontrade isnotavailable.
(f) Legal basis
Governmental Ordinance onfishing, aquaculture andfisheries (SFS 1994:1716,
1January 1995).
(g) Rules andconditions
Recipients: Aquaculture enterprises.
Maximumpossibleaidintensity:participationratesarestipulatedinCouncilRegulation
(EC) No.3699/93 andintheSPD.
Categories ofexpenditures eligible foraid:
- theconstruction, modernization andaquisition ofbuildings
- investments toimprove theproduct quality andtoreduce pollution
- theacquisition ofnewplant andmachinery
Theenterprise must besubmitted toofficial animal health control.
3. Investment AidtoFishing PortFacilities
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy (total commitments)
1995/96: Skr3,945,000 (community participation)
Skr1,905,000 (national participation)
1996: Skr4,445,000 (community participation)
Skr2,146,000 (national participation)
(c) Policy objective
Toimprove andadapt structure inthefisheries sector.G/SCM/N/25/EEC
Page730
(d) Duration
Stateaidtoinvestments infishing portfacilities isfromthedateofEUaccession subject
totherules andconditions which arestipulated inCouncil Regulation (EC) No.3699/93.
(e) Statistical data
Estimated number ofrecipients oftheaid1995 and1996: 38
Information concerning effects ontrade isnotavailable.
(f) Legal basis
Governmental Ordinance onfishing, aquaculture andfisheries (SFS 1994:1716,
1January 1995).
(g) Rules andconditions
Recipients:
- Local authorities &other public bodies
- fishermen andfishprocessing enterprises connected toharbours
- fishing harbour associations
Maximumpossibleaidintensity:ParticipationratesarestipulatedinCouncilRegulation
(EC) No.3699/93 andintheSPD.
Categories ofexpenditures eligible foraid:
- investments toimprove theconditions under which fishery products arelanded,
handled andstored;
- investments tosupport fishing vessel activities;
- investments toimprove thesafety during thelanding orloading ofproducts.
4. Investment AidforProcessing andMarketing
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy (total commitments)
1995/96: Skr24,860,000 (community funds)
Skr8,502,000 (national funds)
1996: Skr26,700,000 (community funds)
Skr9,078,000 (national funds)
(c) Policy objective
Toimprove thestructure andtodevelop economically viable enterprises inthesector
andtoimprove market supply andvalue added toaquaculture andfisheries products.G/SCM/N/25/EEC
Page731
(d) Duration
Stateaidtoinvestments inprocessing andmarketing isfromthedateofEUaccession
subject totherulesandconditions which arestipulated inCouncil Regulation (EC)No.3699/93.
(e) Statistical data
Estimated number ofrecipients oftheaid1995 and1996: 57
Information concerning effects ontrade isnotavailable.
(f) Legal basis
Governmental Ordinance onfishing, aquaculture andfisheries (SFS 1994:1716,
1January 1995).
(g) Rules andconditions
Recipients: TheProcessing Industry.
Maximumpossibleaidintensity:ParticipationratesarestipulatedinCouncilRegulation
(EC) No.3699/93 andintheSPD.
Categories ofexpenditures eligible foraid:
- Theconstruction andacquisition ofbuildings andinstallation
- Theaquisition ofnewequipment needed fortheprocessing andmarketing
- Theapplication ofnewtechnology
- Investments toimprove product quality andtoreduce pollution.
5. Investment forProtection ofCoastal Waters
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy (total commitments)
1995/96: Skr4,475,000 (community funds)
Skr4,475,000 (national funds)
1996: Skr4,535,000 (community funds)
Skr4,495,000 (national funds)
(c) Policy objective
Toachieve asustainable balance between resources andtheirexploitation.
(d) Duration
Aidfordevelopment ofcoastal waters isfromthedateofEUaccession subject tothe
rules andconditions which arestipulated inCouncil Regulation (EC) No.3699/93.G/SCM/N/25/EEC
Page732
(e) Statistical data
Estimated number ofrecipients oftheaid1995 and1996: 3(including oneaid
scheme)
Information concerning effects ontrade isnotavailable.
(f) Legal basis
Governmental Ordinance onfishing, aquaculture andfisheries (SFS 1994:1716,
1January 1995).
(g) Rules andconditions
Recipients: Public institutions orbodies designated forthatpurpose bythecompetent
authorities.
Maximumpossibleaidintensity:ParticipationratesarestipulatedinCouncilRegulation
(EC) No.3699/93 andintheSPD.
Categories ofexpenditures eligible foraid:
- Investments toimprove water circulation
- Restocking ofspecies ofimportance forthecoastal fishing.
6. AidforPromotion/Marketing
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy (total commitments)
1995/96: Skr0
1996: Skr6,460,000 (community funds)
Skr5,783,000 (national funds)
(c) Policy objective
Toimprove market supply andthevalue added tofisheries andaquaculture products.
(d) Duration
Aidforpromotion isfromthedateofEUaccession subject totherulesandconditions
which arestipulated inCouncil Regulation (EC) No.3699/93.
(e) Statistical data
Estimated number ofrecipients oftheaid1995 and1996: 7
Information concerning effects ontrade isnotavailable.G/SCM/N/25/EEC
Page733
(f) Legal basis
Governmental Ordinance onfishing, aquaculture andfisheries (SFS 1994:1716,
1January 1995).
(g) Rules andconditions
Recipients: Public bodies, fisheries interest associations, private contracters.
Maximumpossibleaidintensity:ParticipationratesarestipulatedinCouncilRegulation
(EC) No.3699/93 andintheSPD.
Categories ofexpenditures eligible foraid:
Consumers surveys andmarket studies, promotion campaigns, organization ofand
participation intradefairs,consumption advice, services andadvice towholesalers andretailers.
7. State AidforTemporary Cessation ofFishing Activity
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy (total commitments)
1995/96 (18months): Skr3,555,267 (funds)
Skr3,555,267 (national funds)
(c) Policy objective
Toachieve asustainable balance between resources andtheirexploitation.
(d) Duration
State aidtotemporary cessation offishing activity isfrom thedateofEUaccession
subject totherulesandconditions which arestipulated inCouncil Regulation (EC)No.3699/93.
(e) Statistical data
Estimated number ofrecipients oftheaid: approx. 400
(f) Legal basis
Governmental Ordinance onfishing, aquaculture andfisheries (SFS 1994:1716,
1January 1995).
(g) Rules andconditions
Recipients: fishing enterprises.
Maximum possible aidintensity: Skr2,000 pervessel andworking day.G/SCM/N/25/EEC
Page734
Categories ofexpenditure eligible foraid:
Compensation ofthelossofincome associated withatemporary cessation measure
introduced asaresult ofunforeseen andnon-recurring circumstances attributable tobiological
causes.
8. AidtoStudies andPilotProjects
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy (total commitments)
1995/96: Skr0
1996: Skr5,733,000 (community funds)
Skr979,000 (national funds)
(c) Policy objective
Toimprove andadapt structures inthefisheries andaquaculture sector.
(d) Duration
Stateaidtostudies andpilotprojects isfrom thedateofEUaccession subject tothe
rules andconditions which arestipulated inCouncil Regulation (EC) No.3699/93.
(e) Statistical data
Estimated number ofrecipients oftheaid1995 and1996: 14
Information concerning effects ontrade isnotavailable.
(f) Legal basis
Governmental Ordinance onfishing, aquaculture andfisheries (SFS 1994:1716,
1January 1995).
(g) Rules andconditions
Recipients: Universities, public andprivate institutions, enterprises.
Maximumpossibleaidintensity:ParticipationratesarestipulatedinCouncilRegulation
(EC) No.3699/93 andintheSPD.
Categories ofexpenditures eligible foraid:
Theresult ofthestudy orpilotproject should beofvalue fortheindustry.
Anyresult must bepublished andmade accessible tothepublic.G/SCM/N/25/EEC
Page735
9. Payment ofCompensation toProducers 'Organizations
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy (total commitments)
1995/96: Skr18,816,000
1996: Skr13,463,000
(c) Policy objective
Togrant financial compensation toproducers 'organizations forlosses when fishhas
beenwithdrawn from themarket.
(d) Duration
From 1January 1995.
(e) Statistical data
Estimated number ofrecipients oftheaid1995 and1996: 4
Sweden considers thatthismeasure hashadveryinsignificant, ifany,effects ontrade.
(f) Legal basis
Council Regulation (EEC) No.3759/92 of17December 1992 onthecommon
organization ofthemarket infishery andaquaculture products.
(g) Rules andconditions
Article 8-12inCouncil Regulation No.3759/92.
10. State AidtoPromote theExports
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy (total commitments)
1995/96: Skr1,300,000
1996: Skr416,000
(c) Policy objective
Topromote theexports offishandfishery products.G/SCM/N/25/EEC
Page736
(d) Duration
From 1July1993.
(e) Statistical data
Estimated number ofrecipients oftheaid1995 and1996: 18
Sweden considers thatthismeasure hashadveryinsignificant effects ontrade.
(f) Legal basis
Government Decision of10June1993.
(g) Rules andconditions
Priority isgiven tothree fields:
- Measures toimprove thecompetence (assess market opportunities, seminars,
etc).
- Common activities abroad, likeparticipation intrade fairs, salespromotion
activities.
- Individual investments within groups ofproducts given special priority (for
instance promotion ofproducts originating fromunderutilized fishresources).
11. State AidforDamages toFishing Gear
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy
Thefigures refer tothenetexpenditure, i.e.thecompensations minus thefee
receipts.
1995/96: Skr1,176,000
1996: Skr1,576,000
(c) Policy objective
Primary objective: aidincaseofdamages caused bysevere weather conditions.
Secondary objective: aidtoSMEs.G/SCM/N/25/EEC
Page737
(d) Duration
Theaidscheme thatwasvalid in1994 came intoforce on1July1993. Thescheme
wasinforce untiltheSwedish accession totheCommunity (1January 1995). State aidto
fisheries isfromthedateofEUaccession subject totherulesandconditions which arestipulated
inCouncil Regulation (EC) No.3699/93.
Asfrom 1January 1997 theaidscheme isnolonger valid.
(e) Statistical data
Estimated number ofrecipients oftheaid1995/1996 (18months): 44
Sweden considers thatthisaidhashadveryinsignificant, ifany,effects ontrade:
- the"aid" consists ofaninsurance system
- a5%-fee ischarged toobtain self-financing
- thepurpose istoreduce theeffects ofharsh weather conditions.
(f) Legal basis
Governmental Ordinance onstateaidtotheprofessional fisheries etc.(SFS1993:382,
1July1993).
Governmental Ordinance onfishing, aquaculture andfisheries (SFS 1994:1716,
1January 1995).
(g) Rules andconditions
Recipients: Fishing enterprises.
Maximum possible aidintensity: 60%ofdamage orloss.
Categories ofexpenditure eligible foraid:Fixed fishing gearusedinthesalmon or
eelfisheries. From August 1994aquaculture installations mayalsobeconnected tothesystem.
Fishing licence andvessel permit arerequired.
Thegearmust benotified inadvance andtheowner must payafeewhich amounts
to5%ofthevalue ofthegear.
12. State AidforStocking ofFish
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy (total commitments)
1995/96: Skr2,000,000
1996: Skr2,000,000G/SCM/N/25/EEC
Page738
(c) Policy objective
Increasing ofstocks ofeelandsalmonids forthecommercial fisheries incoastal and
inland waters.
(d) Duration
1997 isthelastyearforthesubsidy.
(e) Statistical data
Thegrants arerestricted toimprove thestocks anditisnotpossible toestimate any
effects ontrade.
(f) Legal basis
Government Decision. Theprogramme isfinanced byfunds from theprice
regulation system which hasbeenabolished asfrom 1Jaunary 1994.
(g) Rules andconditions
TheBoard ofFisheries decides upon theprogramme andtheCounty Administrative
Boards areresponsible forcarrying outthestocking programme.
13. AidtoMeasures Undertaken within theCommunity Initiative Pesca
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy
1995/96: Skr0(community funds)
Skr0(national funds)
1996: Skr1,418,000 (community funds)
Skr1,337,000 (national funds)
(c) Policy objective
Theobjectives fortheCommunity Initiative Pesca arestipulated intheCommission 's
notice totheMember States (94/C 180/01).
(d) Duration
Theintegrated Operational Programme covers theperiod 1995-1999.
(e) Statistical data
Estimated number ofrecipients oftheaid1995 and1996: 7
Information concerning effects ontrade isnotavailable.G/SCM/N/25/EEC
Page739
(f) Legal basis
Governmental Ordinance onfishing, aquaculture andfisheries (SFS 1994:1716,
1January 1995).
(g) Rules andconditions
Recipients: Pesca isdesigned principally forareas dependent onfisheries inregions
eligible under objective 1,2and5(b).
Maximum possible aidintensity: Participation ratesarestipulated intheOperational
Programme.
Categories ofexpenditures eligible foraid:
- Diversification ofactivities ineligible areas
- Business services
- Maintenance orcreation ofjobs
- Specific project ofageneral and/or transnational nature inthefisheries sectors.
14. AidtoResearch andDevelopment within theFishery Sector
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy
1995/96 (18months): Skr885,000
Three projects: Skr285,000-300,000
(c) Policy objective
Develop fishing gearwithimproved selectivity. Improve techniques fortheprocessing
ofherring anddevelop newproducts ofherring.
(d) Duration
Grants aregiven forperiods of1-3years.
(e) Statistical data
Thegrants arerestricted tobasic research anddevelopment anditistherefore not
possible toestimate effects ontrade.
(f) Legal basis
Government decision (letter ofregulation)G/SCM/N/25/EEC
Page740
(g) Rules andconditions
Theresearch anddevelopment results mustbepublished andbeaccessible tothepublic.
Frequent cooperation witharesearch institute isaprerequisite. 25%oftheamount ispaid
which theproject isfinished.
15. InvestmentforMeasuresUndertakenwithintheParliamentInitiativeActionPlanforSmall-Scale
Coastal Fishing
(a) Form ofsubsidy
Grant.
(b) Amount ofsubsidy (total commitments)
1996: Skr171,000 (community funds)
Skr22,800 (national funds)
(c) Policy objective
Action planforsmall-scale coastal fishing inanswer toaninitiative fromtheParliament
andinaccordance withtheoutline described inaletter(050292) fromtheEuropean Commission
of8August 1995.
(d) Duration
1996.
(e) Statistical data
Estimated number ofrecipients oftheaidin1996: 31
Information concerning effects ontrade isnotavailable.
(f) Legal basis
Governmental Ordinance onfishing, aquaculture andfisheries (SFS 1994:1716,
1January 1995).
(g) Rules andconditions
Recipients:
Fishing byprofessional fishing vessels ofanoverall length oflessthan9metres, or
12metres forvessels equipped fortrawling. Allowners, skippers andcrew inthistypeof
fishing arepotential beneficiaries under theplan.
Maximum possible aidintensity: Participation ratesarestipulated intheOperational
Programme.G/SCM/N/25/EEC
Page741
Categories ofexpenditures eligible foraid:
- Introduction anddevelopment ofmore selective fishing gear
- Measures toimprove safety andworking conditions onboard
- Measures intended toameliorate product quality andfreshness
- Training