WORLD TRADE  
ORGANIZATION   
G/SCM/N/220/EEC/Add.26 
18 November 2011 
 (11-5991) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1 
of the GATT 1994 and Article 25 of the Agreement 
on Subsidies and Countervailing Measures 
 
EUROPEAN UNION 
 
Addendum 
   The following addendum to the notification of  the European Union relates to subsidy 
programmes of Sweden . 
 
_______________ 
 G/SCM/N/220/EEC/Add.26 
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  SWEDEN 
 
TABLE OF CONTENTS 
 
 
Page 
 
1.  INTRODUCTION .................................................................................................................. .. 4 
1.1  METHOD AND SCOPE OF THE NOTIFICATION  .............................................................................. 4  
2.  SUPPORT FOR RESEARCH, DEVE LOPMENT AND INNOVATION ........................... 4  
2.1  SUPPORT FOR TECHNOLOGICAL R&D&I   (VINNOVA ) ................................................................ 4  
2.2  ENERGY RESEARCH PROGRAMME  .............................................................................................. 6  
2.3  PROJECT FINANCING THROUGH THE FUND FOR INDUSTRY  ........................................................ 7  
3.  TRAINING AID .................................................................................................................. ...... 8 
3.1  TRAINING AID TO SCANIA AB ..................................................................................................... 8  
4.  FINANCIAL CRISIS AID ....................................................................................................... 9  
4.1  GUARANTEE TO SAAB AUTOMOBILE AB .................................................................................... 9  
4.2  GUARANTEE TO VOLVO CAR CORPORATION  ............................................................................ 10  
5.  REGIONAL AID TO ENTERPRISES ................................................................................. 11  
5.1  REGIONAL INVESTMENT GRANT  ............................................................................................... 12  
5.2  EMPLOYMENT GRANT  ............................................................................................................... 13  
5.3  REGIONAL TRANSPORT GRANT  ................................................................................................ 14  
5.4  THE FUND FOR NORTHERN SWEDEN  ........................................................................................ 15  
6.  ENVIRONMENTAL AID ...................................................................................................... 16  
6.1  SUPPORT TO WIND POWER PRODUCTION  ................................................................................. 16  
6.2  ENERGY TAX CONCESSION  ....................................................................................................... 17  
6.3  INVESTMENT AID FOR SOLAR HEATING  ................................................................................... 18  
6.4  AID SCHEME FOR SOLAR CELLS  ............................................................................................... 19  
7.  INVESTMENT AID TO FI SHING ENTERPRISES .......................................................... 20  
1(a) Aid for Fleet Renewal and Modern isation of Fishing Vessels ................................................. 20  
1(b) Aid for Adjustment of Fishing Effort ....................................................................................... 20  
8.  INVESTMENT AID TO AQUA CULTURE ENTERPRISES ............................................ 21  
9.  INVESTMENT AID TO FISHIN G PORT FACILITIES ................................................... 22  
10.  INVESTMENT AID TO INLAND FISHING ...................................................................... 23  
11.  INVESTMENT AID FOR PROCESSING AND MARKETING ....................................... 24  
12.  INVESTMENT AID FOR PROTECTION OF COASTAL WATERS ............................. 25  
13.  COLLECTIVE INVESTMENT AID IN SMALL-SCALE COASTAL AND 
FRESHWATER FISHING .................................................................................................... 26   G/SCM/N/220/EEC/Add.26 
 Page 3 
 
 
  14.  INVESTMENT AID FOR SOCIO-ECONOMIC MEASURES ......................................... 27  
15.  AID FOR PROMOTION/MARKETING ............................................................................. 28  
16.  AID FOR OPERATIONS BY MEMBERS OF THE TRADE ........................................... 29  
17.  AID FOR TEMPORARY CESSATION OF FISHING ACTIVITIES .............................. 29  
18.  AID TO STUDIES AND PILOT PROJECTS ..................................................................... 30  
19.  PAYMENT OF COMPENSATION TO PRODUCERS' ORGANIZATIONS ................. 31  
APPENDIX ...................................................................................................................... ..................... 33  
The Net Cost Method ........................................................................................................... .................. 33  
 G/SCM/N/220/EEC/Add.26 
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  1. INTRODUCTION 
1.1 M
ETHOD AND SCOPE OF THE NOTIFICATION  
 In Sweden, the budget of the national government is the only source of aid to industry.  Local 
governments are in principle prohibited by law to gran t aid to enterprises.  However, administration of 
aid programmes funded by the central government may take place at the local level. 
 
 The notification covers aid to the business sector, in broad sense, i.e. trade and industry.  It is not possible to separate aid figures to the mining and manufacturing industry (SITC 2 and 3).   The description of the various aid schemes follo ws the outline suggested by WTO.  However, 
it is not possible to present statistical data permitting an assessment of trade effects. 
  The quantitative information is based on the net cost to government method.  This method is 
used for the annual follow-up of stat e aid in Sweden.  The approach h as also been used by OECD in 
its "Public Support to Industry" project.  The method is described in appendix. 
 
 There are several changes compared to th e notification of aid covering the period of 
2007-2008.  Several aid programmes have expired or been subject to changes (hence the Energy 
Technology Fund and the Grant for New Energy Technology are for instance now reported as part of the Energy Research Programme).   2. SUPPORT FOR RESEARCH, DEVELOPMENT AND INNOVATION 
 The major operators of Swedish Support for Research, Development and Innovation 
(R&D&I) to the industry sector are the Swedis h Agency for Innovation Systems, Vinnova, and The 
Swedish Energy Agency, STEM.  With respect to  administration of aid programmes, Vinnova and 
STEM are the main operating state bodies at central le vel. Both authorities are entitled to grant aid to 
undertakings after a state aid decision by the Euro pean Commission in 2008. At the regional level the 
County Administrative Boards are allowed to grant aid for R&D purposes.   The STEM programme aims at promoting energy research and innovation in order to create conditions for effective energy markets, secure ener gy supply and the protecti on of the environment, 
health and climate. Both Vinnovas' and STEMs' progr amme has been extended to also include aid for 
innovation. These figures are therefore included below. 
  2.1 S
UPPORT FOR TECHNOLOGICAL R&D&I   (VINNOVA ) 
(a) Form of subsidy 
 
 Direct grants or soft loans with conditional repayment.  
(b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year  2009: 662 (direct grant) 
  2010: 621 (direct grant) 
  Support is granted to a variety of projects and cannot be broken down per unit . 
  G/SCM/N/220/EEC/Add.26 
 Page 5 
 
 
  (c) Policy objective 
 
 The primary objective is aid for R&D&I.   
(d) Duration 
 
 The programme commenced as from 1 Ju ly 1993, but changes was made from 
1 November 2008, when aid for innovation was introduced.  
(e) Statistical data 
 
 The support is granted to a variety of project s and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects. 
 
(f) Legal basis 
 
 Governmental ordinance 2008:  762 (Förordni ng om statligt stöd till teknisk forskning och 
utveckling samt innovation).  
(g) Rules and conditions 
  The programme is administrated by the Swedish Agency for Innovation Systems, VINNOVA 
and partly, i.e. seedfinancing, by the Swed ish Agency for Economic and Regional Growth, 
Tillväxtverket (former Swedish Busi ness Development Agency, NUTEK). 
  VINNOVA's mission is to promote sustainabl e growth by financing R&D&I and developing 
effective innovation systems. Tillväxtverket is Swed en's central public authority for industrial policy 
issues.   Support is granted to universities, technol ogical research institut es for basic research, 
co-operative research institutes (i.e. institutes fina nced jointly by government and industry) and to 
individual firms and inventors. Aid to industry is considered as state aid by EU law and has to be approved by the European Commission. A precondition fo r receiving support in the form of grants is 
that the result of the supported project is made public. 
  All firms, regardless of industry, are eligible.  However, the support is focused on small firms and individual innovators. The support to  firms and individual inventors is in the form of soft loans 
with conditional repayment. A loan can cover up to 50 per cent of project costs. Repayment, including 
market interest rate, is required if a project becomes commercially successful. The duration and other 
terms of the loan are dependent on the objective of the loan and various economic factors.  Costs for 
personnel, material and supplies related to R&D& I, instruments and equipment, IPR, consulting 
bought-in research, etc. are eligible for aid. Other po ssible aid should be taken into account before the 
decision of support is made.  In practice, projects supported by other state aid schemes do not normally receive support from VINNOVA. To the extent that this occurs, the aid ceilings apply to the 
combined aid. 
 G/SCM/N/220/EEC/Add.26 
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  2.2 E
NERGY RESEARCH PROGRAMME  
(a) Form of subsidy 
 
 Direct grants  or soft loans with conditional repayment.   (b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year  2009:  494 (489 direct grant, 5 soft loan) 
  2010:  320 (316 direct grant, 4 soft loan)  
 Support is granted to a variety of projects and cannot be broken down per unit . 
 
(c) Policy objective 
 
 The primary objective of the programme is research, development and innovation in the 
energy area.  The secondary objective is environmental protection.  
 
(d) Duration 
 
 Programme commenced originally in 1975 and has been prolonged several times.  The programme has been altered as from June 1998 in order to reflect the objectives of the political 
agreement on Swedish Energy Policy reached in 1997.   The programme has been replaced in 2008 by 
Governmental ordinance SFS 200 8:  761, see point (f) below. 
 
(e) Statistical data 
 
 The support is granted to a variety of project s and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects . 
 
(f) Legal basis 
 
 Governmental ordinance SFS 2008:  761 (För ordning om statligt stöd till forskning och 
utveckling samt innovation inom energiområdet). 
 
(g) Rules and conditions 
 
 The main part of the programme is administrated by the Swedish Energy Agency, STEM, but 
the Swedish Agency for Innovation Systems,  VINNOVA, the Swedish Research Council for 
Environment, Agricultural Sciences and Spatia l Planning, FORMAS and the Swedish Research 
Council, Vetenskapsrådet are responsible for some el ements of the programme.  Support is granted to 
universities, institutes of technology, co-operative res earch institutes (i.e. institu tes financed jointly by 
the government and industry) and to undertakings. Ai d to industry is considered as state aid by EU 
law and has to be approved by the European Commissi on. The general rule is that all results from the 
Energy Research Programme are official and shall be made publicly available. Aid to firms accounts 
for a minor portion of the expenditure. Costs for pe rsonnel, materials and supplies related to R&D, 
instruments and equipment, consu lting, bought in research etc. are eligible for aid. Maximal aid 
intensity is 50 per cent of eligible costs. Other po ssible aid shall always be taken into account before 
decision of support is made. 
  G/SCM/N/220/EEC/Add.26 
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  2.3 PROJECT FINANCING THROUGH THE FUND FOR INDUSTRY  
 The Fund for Industry is a public foundation. Its main objective is to promote industrial 
development and marketing. The Fund should earn e nough money to retain its capital on a long term 
basis.  This calls for market interest ra tes to compensate for a few inevitable losses. 
 (a) Form of subsidy 
 
 Project financing in the form of soft lo ans with conditional repayment, guarantees and 
provision of risk capital.   (b) Amount of subsidy 
 
 Net cost
1 in SEK millions:  calendar year 2009:  30 (soft loan) 
  2010:   2 (provision of risk capital)  
 Support is granted to a variety of projects and cannot be broken down per unit . 
 
(c) Policy objective 
 
 The primary objective of the project financing is aid to R&D and SME's.  (d) Duration 
 
 The scheme commenced in 1979 and was altere d in 1993 and 1996. Duration has not been 
specified.  (e) Statistical data 
 
 The support is granted to a variety of project s and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects . 
 
(f) Legal basis 
 
 Governmental ordinance SFS 1996:  880 (För ordning om finansiering genom Industrifonden). 
 
(g) Rules and conditions 
  Project financing:  the Fund concentrates on support to small and medium sized companies.  
There are no restrictions regarding industry or location.  To be eligible for support, a project must involve a substantial risk, but have a compensati ng potential to become commercially successful.  The 
maximum amount of an award cannot exceed 50 per cent of the costs of a project.  Expenditures connected with a development project (seldom land or buildings) are eligible for financing.  All 
successful SME's pay back with market interest ra te or royalty.  Financing from the Fund may be 
combined with regional support, in accordance with the state aid rules in the European Community. 
 
                                                      
1 Net cost figures for soft loans are not availa ble, hence the reported figures are estimates. G/SCM/N/220/EEC/Add.26 
Page 8  
 
  3. TRAINING AID 
3.1 T
RAINING AID TO SCANIA AB 
(a) Form of subsidy 
 
 Direct grant, 50 per cent co-financed by the European Social Fund. 
 
(b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year  2009:  23.6   2010:  26.9 
 
 Support is granted to a variety of projects and cannot be broken down per unit . 
 
(c) Policy objective 
  The primary objective of the scheme is training. The training programme consists of three 
modules:  Module 1 - Basic Training:  This part of the traini ng concerns general basic skills of the workforce. 
Purpose of the module is to provide a block of uppe r secondary level qualifications through a series of 
courses such as Swedish and English language as well as maths.  In addition, through a series of 
objectives ( inter alia  "basic technical education", "basic computer education", "health and 
environment", "product knowledge ") the training will allow workers to achieve broad general 
competences that they can use acro ss the whole heavy vehicle industry. 
 Module 2 - Production Technique:  The purpose of this module is to prepare workers for more 
technical work by offering training measures concerning inter alia  processing technology, 
automation, assembling technique and logistics.  Module 3 - Efficient Production Systems:  The objective of this module is to increase involvement, commitment of the workforce and quality of the work by improving the understanding of efficient production systems.  Parts of the module will inter alia  be "problem solving", "good habits" and "to 
improve standards". 
  The three modules are interlinked, with module 1 as basic training and module 3 as advanced training.  All participants will start in modul e 2, where they will undergo a screening process 
identifying their individual training needs.  Depending on the results of this screening process, 
participants will either start with module 1, 2 or 3.  
  The training programme will cover blue-collar workers of Scania AB, as well as blue-collar 
workers which are being employed by its suppliers and SMEs, workers, that are in to be considered as 
least qualified, and would normally not be able to obtain the competence development envisaged by the training programme.  The training programme w ill go beyond training that is necessary for the 
good functioning of Scania's production. Indeed, the training aims at broadening and deepening the 
competences of the participating workers, which woul d enable them to fulfil more advanced tasks.  
One result of the training is an increase in employ ability of the blue-collar workers covered by the 
project in heavy vehicles industry, the engineeri ng industry and other associated industries and thus 
strengthen their position on the employment market 
  G/SCM/N/220/EEC/Add.26 
 Page 9 
 
 
  (d) Duration 
 
 Aid may be granted from 1 May 2009 to 1 N ovember 2009.  Payments may stretch for a 
longer period of time.    (e) Statistical data 
 
 The support is granted to a variety of projects, therefore it is not possible to present statistical 
data permitting an assessment of trade effects. Trade  effects are however estimated to be negligible.  
 
(f) Legal basis 
 
 The Swedish Reform Programme for Gr owth and Jobs 2006-2008. Government 
communication 2006/07:  23.  (g) Rules and conditions 
 
 The training aid for Scania will consist of di rect grants financed by ESF and national funds 
(50/50). Länsstyrelsen will assign Scania to carry out the training.  After Scania has started 
implementing the training, it has to report the training costs incurred on a monthly basis to Länsstyrelsen, providing written documentation such  as invoices.  Länsstyrelsen will review the 
material and will prepare a request in accordance with the implementing rules of the ESF, which will 
be submitted to the Swedish ESF Council.  The Coun cil will then decide on the basis of the submitted 
information whether the aid should be paid out. Ac cording to this decision Länsstyrelsen will then 
compensate Scania for the relevant costs.  4. FINANCIAL CRISIS AID  
4.1 G
UARANTEE TO SAAB AUTOMOBILE AB  
(a) Form of subsidy 
 
 State guarantee for a loan from the European Investment Bank, EIB. 
 
(b) Amount of subsidy  
 Net cost in SEK millions:  calendar year  2009:      0   2010:  207
2  
 (c) Policy objective 
 
 The primary objective is remedy for a serious disturbance in the economy.  
(d) Duration 
  From 1 November 2009 to 1 January 2016. 
 
(e) Statistical data 
 
 The support is granted to a variety of project s and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects . 
                                                      
2 Nominal guarantee amounts to circa SEK 2,070 million, aid element 10 per cent. G/SCM/N/220/EEC/Add.26 
Page 10  
 
   
(f) Legal basis 
 
 Based on the powers it has received from Parliament, on 11 June 2009 the Swedish Government instructed Riksgälden, the National Debt Office, to start negotiations with Saab 
Automobile AB on a State guarantee to be issued for a loan from the EIB. 
  Riksgälden is empowered to issue such guara ntees. However, the Government must approve 
the guarantee in each particular case. After the d ecision of the Government, Riksgälden will provide 
the guarantee to Saab.  The signing of the guara ntee agreement, between Riksgälden and Saab, 
constitutes the granting of the legally binding guarantee. 
 
(g) Rules and conditions 
 
 Riksgäldens guarantee will be divided into two separate guarantees.  The first guarantee will 
cover 82.8 per cent of the loan, i.e. EUR 331.2 mi llion out of EUR 400 million.  In return for the 
guarantee, Saab will pay the Swedish State a premium amounting to 323 basis points ("bps") per annum ("p.a.") for the first two years that the guarantee applies, i.e. 3.23 per cent of the 
instalments received by Saab.  After this period of  two years, Saab will pay a premium amounting to 
380 bps (3.80%) p.a. for the remainder of the va lidity of the guarantee.  The second guarantee will 
cover the remaining 17.2 per cent of the loan, i.e.  EUR 68.8 million out of EUR 400 million.  For this, 
Saab will pay the Swedish State a premium of 1248 bp s p.a., i.e. 12.48 per cent of the amount covered 
by the guarantee. (20) The two guarantees will apply pari passu, i.e. without any preference or seniority between the two; such that any sum paid  out under the global guarantee will be covered pro 
rata by the two guarantees jointly (i.e. 82.8 per cent will be cove red by the first guarantee and 
17.2 per cent by the other). 
 
 In addition to the premium payable for the guarantee, Saab will provide the Swedish government with high-quality collateral covering the full guaranteed amount.  This collateral will be 
callable by the Swedish State if it has to pay ou t any money under the guarantee.  Before every 
instalment of the EIB loan, the NDO shall ensure th at Saab has pledged adequate collateral for the 
guarantee and that Saab is able to provide the required co-financing of the project costs. 
 
4.2 G
UARANTEE TO VOLVO CAR CORPORATION  
 This aid scheme is mentioned for completion only. No aid has been issued during 2009-2010. 
 
(a) Form of subsidy 
 
 State guarantee for a loan from the European Investment Bank, EIB. 
 
(b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year 2010:  0 
 
(c) Policy objective 
 
 The primary objective is remedy for a serious disturbance in the economy.  (d) Duration 
 
 From 20 December 2010 to 20 December 2020.   G/SCM/N/220/EEC/Add.26 
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  (e) Statistical data 
 
 The support is granted to a variety of project s and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects .  
 (f) Legal basis 
 
 Based on the powers it has received from Parliament, on 11 November 2010 the Swedish Government instructed Riksgälden, the National Debt Office, to start negotiations with Volvo 
Personvagnar AB (Volvo Car Corporation, VCC) on a State guarantee to be issued for a loan from 
the EIB. 
  Riksgälden is empowered to issue such guara ntees.  However, the Government must approve 
the guarantee in each particular case. After the d ecision of the Government, Riksgälden will provide 
the guarantee to VCC.  The signing of the guara ntee agreement, between Riksgälden and VCC, 
constitutes the granting of the legally binding guarantee. 
 
(g) Rules and conditions 
 
 VCC is undertaking a project concerning research and engineering activities which is related to (i) automotive fuel efficiency  aiming at less CO2 emissions and (ii) safety. The project will run 
until 2012. In order to fulfil this financing plan , VCC has applied for a EUR 500 million loan from the 
EIB2. On 16 November 2010, the EIB Board of Directors took a preliminary decision to grant VCC a loan of EUR 500 million.    Riksgäldens guarantee will be divided into two separate guarantees.  The first guarantee will 
cover 90 per cent of the loan, i.e. EUR 450 million out of EUR 500 million.  In return for the 
guarantee, VCC will pay the Swedish State a pr emium amounting to between 68-170 basis points 
("bps") per annum ("p.a.") for the first two years that the guarantee applies, i.e. 0,68 per cent-1,70 per cent of the instalments received by VCC. After this period of two years, VCC will pay a premium amounting to [between 80-200 bps (0,8 per cent-2,00 per cent)] p.a. for the remainder of the 
validity of the guarantee. The second guarantee will c over the remaining 10 per cent of the loan, i.e. 
EUR 50 million out of EUR 500 million.  The two guarantees will apply pari passu, i.e. without any 
preference or seniority between the two; such that any sum paid out under the global guarantee will be 
covered pro rata by the two guara ntees jointly (i.e. 90 per cent will be covered by the first guarantee 
and 10 per cent by the other).  The two guarantees w ill have the same duration of the loan that they 
cover.  In any case, they will not be  in force after the end of 2020. 
 
 In addition to the premium payable for the guarantee, VCC will provide the Swedish 
government with high-quality collateral covering the full guaranteed amount.  This collateral will be 
callable by the Swedish State if it has to pay ou t any money under the guarantee.  Before every 
instalment of the EIB loan, Riksgälden shall ensure  that VCC has pledged adequate collateral for the 
guarantee and that VCC is able to provide th e required co-financing of the project costs. 
 
5. REGIONAL AID TO ENTERPRISES 
 The main goal of Swedish regional growth policy is to have development ability in all parts of 
the country with enhanced local and regional co mpetitiveness.  An active regional policy has for 
many years been of major importance due to the sp ecial living-conditions in large parts of Sweden.  
Regional aid to enterprises in Sweden is grante d within the framework following schemes reported 
below.  G/SCM/N/220/EEC/Add.26 
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  5.1 R
EGIONAL INVESTMENT GRANT  
 The Regional Investment Grant follows the Eu ropean Community rules, i.e. Guidelines on 
national regional aid 2007-2013 (2006/C 54/08).  
(a) Form of subsidy 
 
 Direct grants for tangible or intangible inv estments. The grants can be reclaimed if the 
objectives are not fulfilled.  
(b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year  2009:   521   2010:   436   Support is granted to a variety of sectors and reci pients and cannot be broken down per unit . 
 
(c) Policy objective 
 
 The programme is administrated by The Swedish Agency for Economic and Regional 
Growth, Tillväxtverket. The programme supports inv estments in tangible and intangible investments.  
The primary objective is regional development in designated areas. Secondary objectives are aid to 
SME's, employment and R&D in designated areas 
 
(d) Duration 
 
 The programme commenced as from 1 July 1990.  Duration until 31 December 2013. 
 
(e) Statistical data 
 
 The support is granted to a variety of project s and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects . 
 (f) Legal basis 
 
 Governmental Ordinance SFS 2007:  61 (Föror dning om regionalt investeringsstöd) and 
SFS 1999:  1382 (Föror dningen om stödområden för vissa regionalpolitiska företagsstöd). 
 (g) Rules and conditions 
 
 Eligible are natural or juridical persons ope rating in Sweden and public authorities working 
with viability in certain competitive sectors on mark et conditions.  In certain cases aid can also be 
granted to non profit associations.  The firm must be profitable.  The total grant element may not 
exceed the maximal aid intensity allowed in each designated area. 
 
 Regional Investment Grants can be awarded in connection with investments in buildings, 
machinery, etc.  It can also be awarded for in tangible investment, such as investments in patent, 
licenses, marketing activities, development of new pr oducts and education.  The form of the aid is a 
grant, which can be reclaimed if the objectives, are not fulfilled. 
 
 The grant is awarded discretionary accordi ng to the calculated need for each individual 
project, the size of the investments, the number of ne w jobs, etc.  Maximal intensity is 15 per cent of 
eligible investment costs in aid area A and 10 per cent in aid area B.  The maximum grant in regional  G/SCM/N/220/EEC/Add.26 
 Page 13 
 
 
  aid area A can be increased to 35 per cent in the case of investments in a small company and 
25 per cent in the case of a medium sized company. In aid area B the maximum grant is 30 and 25 per cent for small and medium sized companies respectively.   The awarding of a grant has many reasons.  For example:  The cost of building is higher in 
the designated areas because of climatic reasons, trans port costs, etc.  It is more difficult to finance 
these investments on the regular credit market because of their low alternative value. 
  The main rule is that the grant is taxable as an  income to the recipient.  The general level for 
corporate income taxes is about 28 per cent flat  rate.  In Sweden, the value of buildings may 
depreciate at rates varying from 2 to 5 per cent pe r annum, depending on the type of the building.  
Machinery is normally depreciated during a 5 year period.  The grant can be awarded either by the Government, the Swedish Agency for Economic a nd Regional Growth, Tillväxtverket or the County 
Administrative Boards.  
5.2 E
MPLOYMENT GRANT  
(a) Form of subsidy 
 
 Direct grant.  
(b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year 2009:  17   2010:  14   Support is granted to a variety of sectors and reci pients and cannot be broken down per unit . 
 
(c) Policy objective 
 
 Primary objective is employment in designated areas. The scheme is aimed at creation of new employment in certain regions by reducing the extra costs during the first years when taking on additional labour. 
 
(d) Duration 
 
 The programme commenced as of 1 July 1990.  Duration is formally decided for every new 
fiscal year. 
 
(e) Statistical data 
 
 The support is granted to a variety of sectors and recipients, therefore it is not possible to 
present statistical data permitting an assessment of trade effects . 
 (f) Legal basis 
 
 Governmental ordinance SFS 1998:  996  (Förordning om sysselsättningsbidrag). 
 
(g) Rules and conditions 
 
 The programme is administrated by the Swedis h Agency for Economic and Regional Growth, 
Tillväxtverket. Eligible for aid are public authorities,  natural or juridical persons operating in Sweden 
and working in competitive sectors on market conditions. G/SCM/N/220/EEC/Add.26 
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 In some cases aid can also be granted to  non profit associations. Grants are awarded 
according to the amount of new jobs created measured  in additional man-years (i.e. total net increase 
of working hours performed by employees in compan ies applying and eligible for aid). Support is 
only granted for employment that is considered fi xed and the employer shall supply training in the 
form of theory or practice of at least 125 hours during a period of two years. 
  The aid intensity in regional aid area A: a total sum of SEK 198,000 per additional year of work allocated according to a uniform scheme during a three-year period.  
 The aid intensity in regional aid area B:  a total sum of SEK 120,000 per additional year of 
work allocated according to a uniform scheme during a three-year period.  
Year Aid area A Aid area B 
1   66,000   40,000 
2   66,000   40,000 
3   66,000   40,000 
Total 198,000 120,000 
 5.3 R
EGIONAL TRANSPORT GRANT  
(a) Form of subsidy 
 
 Direct grants.  (b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year  2009:  377   2010:   365  
 Support is granted to a variety of sectors and reci pients and cannot be broken down per unit . 
 
(c) Policy objective 
 
 The primary objective is regional aid to designated areas.  The objective of the grant is to 
partly compensate for high transport costs due to long distances to the main markets.  It is important 
to create new employment and to maintain employme nt in those areas in Sweden where the cost of 
transport is considerably higher than in the rest of the country.  Hereby these companies are put on 
more equal footing when competing with compan ies situated closer to the large markets. 
 
(d) Duration 
 
 The scheme commenced in 1971.  Duration until 31 December 2013. 
 
(e) Statistical data 
 
 The support is granted to a variety of sectors and recipients, therefore it is not possible to 
present statistical data permitting an assessment of trade effects . 
 
(f) Legal basis 
  G/SCM/N/220/EEC/Add.26 
 Page 15 
 
 
   Governmental ordinance SFS 2000:  281. (F örordningen om regionalt transportbidrag). 
 
(g) Rules and conditions 
 
 The programme is administrated by the Swedis h Agency for Economic and Regional Growth, 
Tillväxtverket.  Eligible are Swedish natural or  juridical persons, foreign company branches in 
Sweden or foreign natural persons living in Sweden.   The assisted projects:  actually paid domestic  transport costs from the regional aid area for 
goods that have been produced or manufactured (p rocessed) in this area (except for certain products 
like pulp, paper, metals, certain st eel products and iron ore).  Trans port costs for raw materials that 
shall be processed in the regional transport aid area are also eligible.  However, in principle, materials 
from outside the aid area that are also produced in the aid area are not eligible.  The goods transported 
must be highly processed in order to be eligible.  The grant is awarded automatically after application 
if all the conditions are fulfilled. 
 
 Aid for transport can be granted for transport for the stretch that exceeds 401 kilometres.  The aid is calculated based on the stretch and a rate of aid in per cent that depends on the location of the 
company receiving aid.  Accordingly, transport aid intensity can vary between 10-45 per cent.  The maximum amount for the total transport aid that can be granted per production site in a calendar year 
is SEK 15 million. 
 
5.4 T
HE FUND FOR NORTHERN SWEDEN  
 The Fund has been operating with two different types of activities: 
  - Loans, including guarantees and conditional loans given primarily to small and 
medium sized companies within the industrial and service sector; 
  - guarantees and project support given to institutions or projects and research of 
infrastructure character (for example, resear ch activities at universities and colleges, 
foundations of research bodies outside the uni versity sphere).  As from 1994 the Fund 
has primarily concentrated on the loan operation. 
 
(a) Form of subsidy 
 
 Mainly soft loans at market conditions. No s ubsidies, risk-sharing. Conditional soft loans, 
guarantees, and direct grants. 
 
(b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year 2009:   28   2010:   27   Support is granted to a variety of projects and recipients and cannot be broken down per unit. 
 
(c) Policy objective 
 
 The primary objective is regional aid to designa ted areas.  The secondary objective is aid to 
SMEs and R&D.  The aim of the fund is to promot e development mainly of SMEs, at present, in the 
five northernmost counties.  
(d) Duration G/SCM/N/220/EEC/Add.26 
Page 16  
 
   
 The scheme commenced in 1961.  Duration has not been specified. 
 
(e) Statistical data 
 
 The support is granted to a variety of project s and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects . 
 
(f) Legal basis 
  Government Decision 1961, the latest revision in 1995. 
 
(g) Rules and conditions 
 
 Expenditure eligible for financing is pr oduct development, marketing, fixed assets and 
working capital.  
 
6. ENVIRONMENTAL AID 
6.1 S
UPPORT TO WIND POWER PRODUCTION  
(a) Form of subsidy 
  Tax reduction 
 
(b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year 2009: 181 
  2010: 107 
  Support is granted to a variety of projects and cannot be broken down per unit . 
 
(c) Policy objective 
  The objective of the support is to ensu re viability for producers of wind energy. 
  To be commercially competitive within the deregulated Swedish electricity market, wind 
energy producers need compensation for additional production costs compared foremost to operators 
providing electricity from traditional and non-renewable energy sources. However, due to particularly 
high production costs for wind power, additional comp ensation in the form of tax relief is awarded 
and can be cumulated with support for small scale electrical producers, see 7.3 above. 
 
(d) Duration 
 
 The duration of the current scheme is from 1 January 2007 to 31 December 2012.  
 
(e) Statistical data 
 
 The share of small scale and renewable electri city production, including a.o. wind power, 
corresponds to 1.5 per cent of total energy production.  Trade effects are estimated to be negligible . 
 
(f) Legal basis 
  G/SCM/N/220/EEC/Add.26 
 Page 17 
 
 
   The legal provisions are laid down in SFS: 1994:   1776 (Lag om skatt på energi), Act of 
Excise Duties on Energy, chapter 11, § 10.  
(g) Rules and conditions 
  The subsidy was 18.1 öre per KWh produced at wind power plants in 2003.  In 2004 the 
subsidy was differentiated and reduced.  For la nd based wind power the level was 12 öre per KWh 
and for offshore wind 17 öre.  The subsidy has been  further reduced since that.  In 2007 the subsidy 
dropped to 4 öre per KWh for land based wind power a nd to 14 öre/KWh for off-shore wind.  In 2008 
the subsidy amounted to 2 öre/KWh respectively 13 öre/KWh .  The amount of aid corresponds to the 
tax level for energy paid by individual consumers.   For administrative reasons the relief is given to 
purchasers/distributors of electricity, which subsequently  is to be transferred to the producers of wind 
power.  6.2 E
NERGY TAX CONCESSION  
(a) Form of subsidy 
 
 Tax reduction  
(b) Amount of subsidy 
  Net cost in SEK millions:  calendar year 2009: 19.840 
  2010:  20.790   Support is granted to a variety of projects and cannot be broken down per unit . 
 (c) Policy objective 
 
 The tax measure aims at reducing emissions of CO2.  The objective of the concession provisions is to safeguard that enterprises with ener gy intensive production ar e not burdened with an 
unreasonably high tax level.  (d) Duration 
 
 The present system started 1 July 1997.  Duration until further notice.  
(e) Statistical data 
 
 The support is granted to a variety of project s and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects . 
 
(f) Legal basis 
  The legal provisions are laid down in the Ac t of Excise Duties on Energy (SFS 1994:  1776), 
chapters 1.9, 2.11, 6.1, 7.3, 9.9, 11.3, 11.4 and 11.7.  
(g) Rules and conditions 
  In 1957, an energy tax on fossil fuels used inter alia  for heating was introduced in Sweden.  
The full tax is levied from households, companie s in the service sector and from manufacturing 
companies as regards fuels used for heating othe r than in production processes.  In 1991, a CO2 tax 
was introduced.  That tax is al so levied on fossil fuels used inter alia  for heating and is due in full by G/SCM/N/220/EEC/Add.26 
Page 18  
 
  households, by companies in the service sector and by manufacturing companies as regards fuels used 
for heating other than in production processes.  Sp ecific rules within the tax system provide for 
possibilities to deviate from full taxation in certain c ases.  Hence, a tax exemption is made for the use 
of certain biofuels when being used for heating pur poses and an exemption is also made for the use of 
biofuels and certain alternative fuels when bein g used for the operation of stationary motors.  
Furthermore, companies in the manufacturing sector and combined heat and power (CHP) plants 
receive a reduction by 79 per cent of the CO2 tax for fossil fuels when used for heating and operation 
of stationary motors.  An additional reduction fo r those beneficiaries covered by the EU Emission 
Trading Scheme (ETS) have been introduced, prov iding for a gradual reduc tion as from 1 July 2008 
by 6 percentage points compared to existing tax leve l.  For industrial activities and heat production in 
CHPs, the tax burden was reduced from 21 per cent to 15  per cent.  For other heat production, the tax 
burden decreased from 100 per cent to 94 per cent.  With  regard to the energy tax on electricity, there 
is a tax reduction for companies within the ma nufacturing sector and a full exemption for energy 
intensive companies.  A regional reduction of energy  tax is also possible for companies in the service 
sector operating in the northernmost part of Swed en.  Finally, as regards CO2 tax, further tax 
reductions can be applicable to energy intensive companies.  If the CO2 tax paid exceeds 0.8 per cent 
of the sales value of the products sold by the compan y, it is possible to apply for a further reduction of 
the excess tax amount so that only 24 per cent of that amount is paid.  The tax rates that the remaining 
tax amount corresponds to must on the average resp ect the EU minimum tax rates for the consumed 
heating fuels.  
6.3 I
NVESTMENT AID FOR SOLAR HEATING  
(a) Form of subsidy 
 
 Direct grant.  (b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year 2009: 7   2010:  8  
(c) Policy objective 
 
 Promotion of solar heating forms part of the Sw edish Government's strategy to phase out oil.  
The objective is to have 1 million m
2 glass solar cells installed by 2020.  In the period 2008-2012 the 
Swedish authorities are expecting 50,000 m2 glass solar cells to be installed annually. 
 (d) Duration 
 
 From 1 July 2008 to 30 June 2013.  
(e) Statistical data 
  Trade effects are estimated to be negligible. 
 
(f) Legal basis 
 
 The legal basis is Governmental ordi nance SFS 2008:  1247 (Förordning om stöd för 
investeringar i solvärme). 
 
(g) Rules and conditions 
  G/SCM/N/220/EEC/Add.26 
 Page 19 
 
 
   The eligible investments are investments in in stallations of glass solar collectors with liquid 
heat carrier, which fulfil the European sta ndard EN 12975-1:  2006 and are tested by a body 
accredited under the European standard EN 12975-2:   2006.  Beneficiaries of the aid can be 
enterprises of any size and from any sector in any Sw edish region.  The aid will be granted with an 
amount corresponding to SEK 2.5 per estimated yearly kWh of heat production, with a maximum of 
SEK 3 million per project.  Estimated annual budge t for the programme is about SEK 25 million of 
which the major part will be granted to other bene ficiaries than enterprises, i.e. natural persons 
owning their own dwellings.   As from 2009 this programme has been adju sted, providing for additional support to the 
instalment of solar heating. 
 6.4 A
ID SCHEME FOR SOLAR CELLS  
(a) Form of subsidy 
  Direct grant. 
 
(b) Amount of subsidy 
 
 Net cost in SEK millions:  calendar year 2009:   9   2010:  47 
 
(c) Policy objective 
 
 Primary objective of the scheme is environmental protection.  The aim is to create a market for solar cells systems in Sweden in order to cont ribute to the change of the energy system and to 
industrial development in the field of energy tec hniques.  The objective is to increase the number of 
suppliers and users of solar cells in Sweden, cont ribute to decreased costs for the systems and increase 
the annual electricity production from solar cells by at least 2.5 GWh during the duration of the 
scheme (2009-2011).  
(d) Duration 
 
 From 1 January 2009 to 30 December 2011.  
(e) Statistical data 
  Trade effects are estimated to be negligible. 
 
(f) Legal basis 
 
 The legal basis is Governmental ordinance SFS 2009:  689 (Förordning om statligt stöd till 
solceller). 
 
(g) Rules and conditions 
 
 Investments in solar cell systems and in simulta neous production of solar electricity and solar 
heat in an integrated construction (i.e. hybrid syst ems) will be eligible for aid.  The latter type can 
only receive aid if the electricity production amounts to at least 20 per cent of the system's estimated 
total annual production of electricity and heat.  The maximum aid intensity will be 60 per cent of 
investment costs for small and medium-sized enterp rises and 55 per cent of investment costs for large 
enterprises.  Only one solar cells system per building can receive support.  G/SCM/N/220/EEC/Add.26 
Page 20  
 
   
7. INVESTMENT AID TO FISHING ENTERPRISES 
1(a) Aid for Fleet Renewal and Modernisation of Fishing Vessels 
(a) Form of subsidy 
  Grant. 
 (b) Amount of subsidy (Total commitments) 
  2009: SEK 569,174 (Community funds) 
  SEK 569,174 (National funds) 
  2010: SEK 313,034 (Community funds)   SEK 313,034 (National funds)  (c) Policy objectives 
 
 To strengthen the structure, and to develop economically viable enterprises, in the sector. 
 
(d) Duration 
  Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regul ation (EC) No 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No 1198/2006.  (e) Statistical data 
 
 Estimated number of recipients of aid in 2009:  approx. 27  Estimated number of recipients of aid in 2010:  approx. 26  Information concerning effects on trade is not available.  (f) Legal basis 
 
 Ordinance on fishing, aquaculture and fi sheries (SFS 1994:  1716, 1 January 1995). 
 
(g) Rules and conditions 
 
 Recipients:  fishing enterprises.   Categories of expenditures eligible for aid:  RSW tanks, safety equipmen t, selective gear, etc. 
 
1(b) Aid for Adjustment of Fishing Effort 
(a) Form of subsidy 
 
 Grant.  (b) Amount of subsidy  (Total commitments)  
 
 2009: SEK 40,575,000 (Community Funds)  G/SCM/N/220/EEC/Add.26 
 Page 21 
 
 
    SEK 13,525,000 (National Funds) 
  2010: SEK 52,399,850 (Community Funds)   SEK 40,345,408 (National Funds)  (c) Policy objectives 
 
 To achieve a sustainable balance be tween resources and their exploitation. 
 
(d) Duration 
 
 Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regul ation (EC) No 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No 1198/2006. 
 
(e) Statistical data 
 
 Estimated number of recipients of aid in 2009:    6  Estimated number of recipients of aid in 2010:  24  Information concerning effects on trade is not available. 
 
(f) Legal basis 
 
 Ordinance on fishing, aquaculture and fi sheries (SFS 1994:  1716, 1 January 1995) 
 (g) Rules and conditions 
 
 Recipients:  fishing enterprises   Categories of expenditures eligible for aid:  
 - Scrapping; 
 - permanent transfer to third country.   Maximum possible aid intensity: participati on rates are stipulated in Council Regulation 
(EC) No. 2792/99 and in the Single Programming Document (SPD). 
 
8. INVESTMENT AID TO AQUACULTURE ENTERPRISES 
(a) Form of subsidy 
 
 Grant.  
(b) Amount of subsidy  (Total commitments) 
  2009: SEK 2,157,715 (Community Funds)   SEK 2,157,715 (National Funds)  
 2010: SEK 830,348 (Community Funds) 
  SEK 830,348 (National Funds)  
(c) Policy objectives: G/SCM/N/220/EEC/Add.26 
Page 22  
 
   
 To develop economically viable enterprises in the sector and assist structural improvements. 
 
(d) Duration 
  Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regula tion (EC) No. 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No. 1198/2006. 
(e) Statistical data 
 
 Estimated number of recipients of aid in 2009:  approx.   7  Estimated number of recipients of aid in 2010:  approx. 14  Information concerning effects on trade is not available.  (f) Legal basis 
 
 Ordinance on fishing, aquaculture and fi sheries (SFS 1994:  1716, 1 January 1995) 
 
(g) Rules and conditions 
  Recipients:  aquaculture enterprises and organi zations concerned with development projects 
within the aquaculture sector.   Maximum possible aid intensity: participati on rates are stipulated in Council Regulation 
(EC) No. 2792/99 and in the SPD. 
 
 Categories of expenditures eligible for aid:   - Construction, modernizati on and acquisition of buildings; 
 - investments to improve the product quality and to reduce pollution;  - acquisition of new plant and machinery. 
 
 The enterprise must be submitted to official animal health control.  
9. INVESTMENT AID TO FISHING PORT FACILITIES 
(a) Form of subsidy 
 
 Grant.  (b) Amount of subsidy  (Total commitments) 
  2009: SEK 6,696,346 (Community funds) 
  SEK 6,696,346 (National funds) 
  2010: SEK 585,006 (Community funds)   SEK 585,006 (National funds)  (c) Policy objectives 
 
 To improve and adapt structure in the fisheries sector.  G/SCM/N/220/EEC/Add.26 
 Page 23 
 
 
   
(d) Duration 
 
 Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regula tion (EC) No. 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No. 1198/2006.  
(e) Statistical data 
  Estimated number of recipients of aid in 2009:  approx. 7 
 Estimated number of recipients of aid in 2010:  approx. 3  Information concerning effects on trade is not available.  
(f) Legal basis 
 
 Ordinance on fishing, aquaculture and fi sheries (SFS 1994:  1716, January 1, 1995) 
 
(g) Rules and conditions 
 
 Recipients: 
 
 - Local authorities & other public bodies;  - fishermen and fish processing enterprises connected to harbours;  - fishing harbour associations.  
 Maximum possible aid intensity:  participation rates are stipulated in Council Regulation (EC) 
No. 2792/99 and in the SPD.   Categories of expenditures eligible for aid:   - Investments to improve the conditions , under which fishery products are landed, 
handled and stored; 
 - investments to support fishing vessel activities;  - investments to improve the safety during the landing or loading of products.  
10. INVESTMENT AID TO INLAND FISHING 
(a) Form of subsidy 
 
 Grant.  (b) Amount of subsidy  (Total commitments) 
 
 2009: SEK 220,681 (Community funds) 
  SEK 220,681 (National funds)   2010: SEK 89,000 (Community funds)   SEK 89,000 (National funds) 
 
(c) Policy objectives 
 
 To improve and maintain a sustainable a nd a financially strong inland fishing sector. G/SCM/N/220/EEC/Add.26 
Page 24  
 
   
(d) Duration 
 
 Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regula tion (EC) No. 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No. 1198/2006.  
(e) Statistical data 
  Estimated number of recipients of aid in 2009:  approx. 9 
 Estimated number of recipients of aid in 2010:  approx. 6  Information concerning effects on trade is not available.  
(f) Legal basis 
 
 Ordinance on fishing, aquaculture and fi sheries (SFS 1994:  1716, 1 January 1995) 
 
(g) Rules and conditions 
 
 Recipients: 
 
 - Fishermen connected to inland fishing:  
Maximum possible aid intensity: Participation rates are stipulated in Council Regulation (EC) No 2792/99 and in the SPD 
 
 - Categories of expenditures eligible for aid:    Renewal of fishing vessels   Security measures  11. INVESTMENT AID FOR PROCESSING AND MARKETING 
(a) Form of subsidy 
 
 Grant  
(b) Amount of subsidy  (Total commitments) 
  2009: SEK 6,142,531 (Community funds)   SEK 6,142,531 (National funds)   2010: SEK 4,111,543 (Community funds) 
  SEK 4,111,550 (National funds) 
 
(c) Policy objectives 
 
 To develop economically viable enterprises in the sector and assist structural improvements. 
 
(d) Duration 
  G/SCM/N/220/EEC/Add.26 
 Page 25 
 
 
   Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regula tion (EC) No. 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No. 1198/2006.  (e) Statistical data 
 
 Estimated number of recipients of aid in 2009:  approx. 25  Estimated number of recipients of aid in 2010:  approx. 29  Information concerning effects on trade is not available. 
 
(f) Legal basis 
 
 Ordinance on fishing, aquaculture and fi sheries (SFS 1994:  1716, 1 January 1995) 
 (g) Rules and conditions 
 
 Recipients:  the processing industry   Maximum possible aid intensity: participati on rates are stipulated in Council Regulation 
(EC) No. 2792/99 and in the SPD 
 
 Categories of expenditures eligible for aid:   - The construction and acquisition of buildings and installation; 
 - the acquisition of new equipment need ed for the processing and marketing; 
 - the application of new technology; 
 - investments to improve product quality and to reduce pollution.  
12. INVESTMENT AID FOR PROTECTION OF COASTAL WATERS 
(a) Form of subsidy 
  Grant. 
 (b) Amount of subsidy  (Total commitments) 
  2009 SEK 6,865,601 (Community funds) 
  SEK 6,865,602 (National funds) 
  2010: SEK 3,340,070 (Community funds)   SEK 3,340,070 (National funds)  
(c) Policy objectives 
 
 To achieve a sustainable balance be tween resources and their exploitation. 
 
(d) Duration 
  Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regula tion (EC) No. 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No. 1198/2006. G/SCM/N/220/EEC/Add.26 
Page 26  
 
   
(e) Statistical data 
 
 Estimated number of recipients of aid in 2009:  7  Estimated number of recipients of aid in 2010:  3 
 Information concerning effects on trade is not available. 
 
(f) Legal basis 
 
 Ordinance on fishing, aquaculture and fi sheries (SFS 1994:  1716, 1 January 1995) 
 
(g) Rules and conditions 
 
 Recipients: public institutions or bodies d esignated for that purpose by the competent 
authorities. 
 
 Maximum possible aid intensity: participati on rates are stipulated in Council Regulation 
(EC) No. 2792/99 and in the SPD.   Categories of expenditures eligible for aid:  
 - Investments to improve water circulati on and other habitat conservation measures; 
 - re-stocking of species of importance for coastal fishing.  
13. COLLECTIVE INVESTMENT AID IN SMALL-SCALE COASTAL AND 
FRESHWATER FISHING 
(a) Form of subsidy 
 
 Grant.  (b) Amount of subsidy (Total commitments) 
 
 2009: SEK 0 (Community funds) 
  SEK 0 (National funds)   2010: SEK 122,072 (Community funds)   SEK 66,268 (National funds) 
 
 
(c) Policy objectives 
 
 To achieve an ecologically sustainable and financially strong fisheries sector.  (d) Duration 
 
 Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regula tion (EC) No. 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No. 1198/2006. 
 
(e) Statistical data 
  G/SCM/N/220/EEC/Add.26 
 Page 27 
 
 
   Estimated number of recipients of aid in 2009:  0 
 Estimated number of recipients of aid in 2010:  2  Information concerning effects on trade is not available.  
(f) Legal basis 
 
 Ordinance on fishing, aquaculture and fi sheries (SFS 1994:  1716, 1 January 1995) 
(g) Rules and conditions 
 
 Recipients:  associations of fishermen or fishermen families. 
 
 Maximum possible aid intensity: participati on rates are stipulated in Council Regulation 
(EC) No. 2792/99 and in the SPD   Categories of expenditures eligible for aid:  increase in value added, selective fishing 
equipment, improvement in landing facilities. 
 
14. INVESTMENT AID FOR SOCIO-ECONOMIC MEASURES 
(a) Form of subsidy 
 
 Grant 
 
(b) Amount of subsidy  (Total commitments) 
  2009: SEK 800,929 (Community funds)   SEK 800,929 (National funds) 
 
 2010: SEK 2,286,716 (Community funds)   SEK 2,286,718 (National funds)  
(c) Policy objectives 
  To recruit young fishermen into the fishing sector. 
 
(d) Duration 
 
 Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regula tion (EC) No. 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No. 1198/2006.  
(e) Statistical data 
  Estimated number of recipients of aid in 2009:    7 
 Estimated number of recipients of aid in 2010:  11  Information concerning effects on trade is not available.  
(f) Legal basis 
 
 Ordinance on fishing, aquaculture and fi sheries (SFS 1994:  1716, 1 January 1995) 
 G/SCM/N/220/EEC/Add.26 
Page 28  
 
  (g) Rules and conditions 
 
 Recipients:  fishermen younger than 35 years.   Maximum possible aid intensity: participation ra tes are stipulated in Council Regulation (EC) 
No. 2792/99 and in the SPD. 
  Categories of expenditures eligible fo r aid: purchases of used fishing vessels. 
15. AID FOR PROMOTION/MARKETING 
(a) Form of subsidy 
 
 Grant.  (b) Amount of subsidy  (Total commitments) 
 
 2009: SEK 1,738,835 (Community funds) 
  SEK 1,738,837 (National funds)   2010: SEK 1,248,827 (Community funds)   SEK 1,248,827 (National funds)  (c) Policy objectives 
 
 To improve market supply and the value a dded to fisheries and aquaculture products. 
 
(d) Duration 
 
 Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regula tion (EC) No. 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No. 1198/2006.  (e) Statistical data 
 
 Estimated number of projects for which aid has been allocated in 2009:  7  Estimated number of projects for which aid has been allocated in 2010:  14  Information concerning effects on trade is not available. 
 
(f) Legal basis 
 
 Ordinance on fishing, aquaculture and fi sheries (SFS 1994:  1716, 1 January 1995) 
 
(g) Rules and conditions 
 
 Recipients:  public bodies, fisheries interest associations, private contractors.   Maximum possible aid intensity: participati on rates are stipulated in Council Regulation 
(EC) No. 2792/99 and in the SPD. 
  G/SCM/N/220/EEC/Add.26 
 Page 29 
 
 
   Categories of expenditures eligible for aid:  consumers surveys and market studies, promotion 
campaigns, organization of and participation in trad e fairs, consumption advice, services and advice to 
wholesalers and retailers.  
16. AID FOR OPERATIONS BY MEMBERS OF THE TRADE 
(a) Form of subsidy 
 
 Grant. 
 
(b) Amount of subsidy  (Total commitments) 
 
 2009: SEK 7,941,013 (Community funds)   SEK 7,941,012 (National funds)   2010: SEK 3,555,341 (Community funds) 
  SEK 3,555,341 (National funds) 
 
(c) Policy objectives 
 
 To improve market supply and the value a dded to fisheries and aquaculture products. 
 (d) Duration 
 
 Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regula tion (EC) No. 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No. 1198/2006. 
 
(e) Statistical data 
 
 Estimated number of projects for which aid has been allocated in 2009:  14  Estimated number of projects for which aid has been allocated in 2010:  10 
 Information concerning effects on trade is not available. 
 
(f) Legal basis 
 
 Ordinance on fishing, aquaculture and fi sheries (SFS 1994:  1716, 1 January 1995) 
 
(g) Rules and conditions 
 
 Recipients:  public bodies, fisheries interest associations, private contractors.   Maximum possible aid intensity: participati on rates are stipulated in Council Regulation 
(EC) No. 2792/99 and in the SPD. 
 
17. AID FOR TEMPORARY CESSATION OF FISHING ACTIVITIES 
(a) Form of subsidy 
  Grant. 
 (b) Amount of subsidy  (Total commitments) G/SCM/N/220/EEC/Add.26 
Page 30  
 
   
 2009: SEK 0 (Community funds)   SEK 0 (National funds)   2010: SEK 0 (Community funds) 
  SEK 0 (National funds) 
 
(c) Policy objectives 
 
 To achieve sustainable balance betw een resources and their exploitation. 
(d) Duration 
 
 Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000 2006, are adopted in Council Regula tion (EC) No. 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No. 1198/2006. 
 
(e) Statistical data 
 
 Estimated number of recipients of aid in 2009:  approx. 0  Estimated number of recipients of aid in 2010:  approx. 0 
 
(f) Legal basis 
 
 Ordinance on fishing, aquaculture and fi sheries (SFS 1994:  1716, 1 January 1995) 
 (g) Rules and conditions 
 
 Recipients:  fishing enterprises.   Categories of expenditures eligible for aid: compensation of the loss of income associated 
with a temporary cessation measure introduced  as a result of unforeseen and non recurring 
circumstances attributable to biological causes. 
 
18. AID TO STUDIES AND PILOT PROJECTS 
(a) Form of subsidy 
  Grant. 
 (b) Amount of subsidy  (Total commitments) 
  2009: SEK 6,917,211 (Community funds)   SEK 6,917,211 (National funds) 
 
 2010: SEK 1,852,319 (Community funds)   SEK 1,852,319 (National funds)  
(c) Policy objectives 
 
 To improve and adapt structures in the fisheries and aquaculture sector.   G/SCM/N/220/EEC/Add.26 
 Page 31 
 
 
  (d) Duration 
 
 Detailed rules and conditions for structural f unds in the fisheries sector, for the programming 
period 2000-2006, were adopted in Council Regula tion (EC) No. 2792/99.  Detailed rules and 
conditions for contribution in the fisheries se ctor, for the programming period 2007-2013, were 
adopted in Council regulation (EC) No. 1198/2006. 
 
(e) Statistical data 
 
 Estimated number of recipients of aid in 2009:  2 
 Estimated number of recipients of aid in 2010:  3 
 Information concerning effects on trade is not available.  
(f) Legal basis 
  Ordinance on fishing, aquaculture and fi sheries (SFS 1994:  1716, 1 January 1995) 
 
(g) Rules and conditions 
 
 Recipients:  universities, public and private institutions, enterprises.  
 Maximum possible aid intensity:  participati on rates are stipulated in Council Regulation 
(EC) No. 2792/99 and in the SPD.   Categories of expenditures eligible for aid:  the result of the study or pilot project should be of 
value for the industry. 
 
 Any result must be published and made accessible to the public.  
19. PAYMENT OF COMPENSATION TO PRODUCERS' ORGANIZATIONS 
(a) Form of subsidy 
  Grant. 
 (b) Amount of subsidy  (Total commitments) 
  2009: SEK 76,428 
 2010: SEK 0 
 
(c) Policy objective 
 
 To grant financial compensation to producers'  organizations for losses when fish has been 
withdrawn from the market. 
 
(d) Duration 
 
 From 1 January 1995.  (e) Statistical data 
 
 Estimated number of recipients of aid in 2009:  1 (Producers' organizations)  Estimated number of recipients of aid in 2010:  0 G/SCM/N/220/EEC/Add.26 
Page 32  
 
   Sweden considers that this measure has had very insignificant, if any, effects on trade. 
 
(f) Legal basis 
 
 Council Regulation (EEC) No. 104/2000 of 17 December 1999 on the common organization 
of the market in fishery and aquaculture products. 
 
(g) Rules and conditions 
 
 Article 21 and 24 in Council Regulation No 104/2000.  G/SCM/N/220/EEC/Add.26 
 Page 33 
 
 
  APPENDIX 
 
 
The Net Cost Method 
 The objective of the net cost to government (N CG-method) is to obtain a consistent measure 
of government aid, where support from various instru ments, i.e. grants, loans, guarantees, equity 
injections and tax concessions, are added.  The NC G-method is used by OECD in its project "Public 
support to industry".   Net costs are calculated as follows: 
 
Grants:  actual amounts paid out minus repayments and royalties if any. 
 Guarantees:  claims paid minus fees received and recoveries; 
 
Loans:  estimated capital cost based on the di fference between the government borrowing rate 
and actual interest payments received. 
 Equity capital:  estimated capital cost based on the government borrowing rate and dividends 
received.  
Tax concessions:  estimates of revenue forgone. 
 
Capital against royalty:  estimated capita l cost based on the difference between the 
government borrowing rate and actual royalty payments received. 
 
 It should be noted that the net cost does not co rrespond to the actual transfer of funds from the 
government to the firms in any given year, i.e. th e expenditure as reported in the government budget.  
Instead the purpose is to indicate the net cost to  government of support to industry.  Since imputed 
capital costs on previous loans and equity injections  are included, the net cost figures to a certain 
extent reflect past policies.  If the net cost of a pr ogramme is negative, that is, if the government earns 
money because of high repayments or interest rates, the net cost is reported as nil (0). 
 
 The NCG-method is not a direct guide to determ ine the extent of distortion of competition nor 
to approximate the ultimate benefit to industry.  Ho wever, the NCG is a useful guide to the evolution 
and the structure of government support over time.  
 
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