WORLD TRADE  
ORGANIZATION  G/SCM/N/123/EEC/Add.24 
26 August 2005 
 (05-3609) 
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 COMMUNITIES 
 
Addendum  
 
  The following addendum to the notification of  the European Community relates to subsidy 
programmes of Sweden
. 
 
_______________ 
 
 G/SCM/N/123/EEC/Add.24 
Page 2  
 
 SWEDEN 
TABLE OF CONTENTS 
 
Page  
1.  INTRODUCTION ............................................................................................................... .....4 
1.1 Method and Scope of the Notification.....................................................................................4  2.  SUPPORT FOR RESEA RCH AND DEVELO PMENT .......................................................4 
2.1   Support for Technological R&D............................................................................................ ..4 
2.2   Project Financing through the Fund for Industry.................................................................6 
2.3   Energy Research Programme................................................................................................ ..7 
2.4   The Energy Technology Fund............................................................................................... ...8 
2.5   Grant for new Energy Technology.......................................................................................... 9 
2.6  Transport- and Communication Research...........................................................................10 
2.7   Project Financing through the Fund for Swedish-Norwegian Industrial  
 Co-operation.................................................................................................................. ..........10 
2.8  Support to energy maintenance in the south of Sweden......................................................11  3.  AID TO SMALL AND ME DIUM SIZED COMPANIES...................................................12 
3.1  The Regional Development Companies, ALMI....................................................................12 
3.2  Support to Small Companies................................................................................................ ..13 
3.3   Industrial De velopment Centres........................................................................................... .14 
 4.   SUPPORT FOR EMPL OYMENT AND TRAINING.........................................................15 
4.1   Support for Vocational Training.......................................................................................... . 15 
 
5.   EXPORT PROMOTION .......................................................................................................16 5.1   General Export Promotion................................................................................................. ....16 
 6.   REGIONAL AID TO ENTERPRISES.................................................................................17 6.1   Regional Development Grant............................................................................................... ..17 
6.2   Loans to regional investment Companies .............................................................................19 
6.3   Employment Grant ......................................................................................................... ........19 
6.5   Regional Transport Grant ................................................................................................. ....20 
6.6   The Fund for Northern Sweden............................................................................................. 21 
 
7.   ENVIRONMENT AID ........................................................................................................... 22 
7.1   Grants for Local Investment Programmes for Ecologically Sustainable   Developmen t (LIP)............................................................................................................. .....22 
7.2   Investment Grant for Certain Investments within the Energy Sector...............................23 7.3  Support to Small Scale Electricity production .....................................................................24 7.4  Support to Wind Power Production......................................................................................25 
7.5   Energy Tax Concession .................................................................................................... ......26 
7.6  Waste Tax Concession ...................................................................................................... ......27 
7.7  Grants for Climate Investment Programmes (Klimp) ........................................................28  APPENDIX....................................................................................................................... ....................30 
The Net Cost Method............................................................................................................ ...............30  
Subsidies to the Fisheries Sector.............................................................................................. ...........30 
Introduction................................................................................................................... .......................30 
1. Investment aid to fishing enterprises ....................................................................................31  G/SCM/N/123/EEC/Add.24 
 Page 3 
 
 
 (1a) Aid for fleet renewal and modernisation of fishing vessels .................................................31 
(1b) Aid for adjustment of fishing effort ...................................................................................... 31 
2. Investment aid to aquaculture enterprises ...........................................................................32 3. Investment aid to fishing port facilities.................................................................................33  
4. Investment aid to inland fishing ............................................................................................ 34 
5. Investment aid for processing and marketing......................................................................35 
6. Investment aid for prot ection of coastal waters ...................................................................36 
7. Collective investment aid in small-scale coastal and  freshwater fishing ............................................................................................................ .......37 
8. Investment aid for so cio-economic measures .......................................................................38 
9. Aid for promotion/marketing ................................................................................................3 9 
10. Aid for operations by members of the trade.........................................................................40 
11. Aid for temporary cessation of fishing activities..................................................................41 12. Aid to studies and pilot projects .......................................................................................... ..41 
13. Payments of compensation to producers' organisations .....................................................42  
 G/SCM/N/123/EEC/Add.24 
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I. INTRODUCTION 
1.1   Method and Scope of the Notification 
 
In Sweden, the budget of the central 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.  
 
2.  SUPPORT FOR RESEARCH AND DEVELOPMENT 
 The former Swedish National Board for Indus trial and Technical Development, NUTEK, was 
on the 1 January 2001 divided into three new au thorities;  The Swedish Business Development 
Agency (NUTEK),  The Swedish Agency for Inn ovation Systems, Vinnova, and the Swedish Institute 
for Growth Policy Studies, ITPS.  As from the da te mentioned, support from the aid programme 2.1 
below, is in part jointly administrated by VINNOVA and NUTEK.  
2.1   Support for Technological R&D  
 
(a)  Form of subsidy
 
  Grants or loans with conditional repayment.  (b)  Amount of subsidy
 
 
 Net cost in SEK millions: Calendar year 2003:  439  
   2004:  473  
  The grants are divided on the receivers: 
 
 -  134 millions SEK to firms and individual inventors in 2003  -  305 millions SEK to technological research institutes and cooperative research institutes 
year in 2003 
  -  173 millions SEK to firms and individual inventors in 2004 
 -  303 millions SEK to technological research institutes and cooperative research institutes 
in 2004 
 
Net cost for seed financing, SEK millions: Calendar year 2003:  65 
         2 0 0 4 :   7 3  
 
 Support is granted to a variety of projects and cannot be broken down per unit 
  G/SCM/N/123/EEC/Add.24 
 Page 5 
 
 
  
(c)  Policy objective  
  The primary objective is aid for R&D and the secondary objective is aid to SMEs.  
(d)  Duration
 
  The programme commenced as from 1 of July 1993.  Duration until further notice, i.e. has not been specified.   
(e)  Statistical data
 
  The support is granted to a variety of projects 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 Governmental ordinance 1995:1254 (Förordning om 
statligt stöd till teknisk forskning, industriellt utvecklingsarbete och uppfinnarverksamhet).  
 (g)  Rules and conditions
 
 
 The programme is administraded by the Swed ish Agency for Innovation Systems, VINNOVA 
and partly, i.e. seedfinancing, by the Sw edish Business Development Agency, NUTEK.  
  The Swedish Agency for Innovation Systems, VINNOVA´s mission is to promote sustainable 
growth by financing RTD and developing eff ective innovation systems. NUTEK, the Swedish 
Business Development Agency, is Sweden's central  public authority for industrial policy issues. 
Together with ALMI Business Partner NUTEK forms a competence centre for financing. entrepreneurship, industrial developmen t and regional business development.  
  Support is granted to universities, technologi cal research institutes fo r basic research, co-
operative research institutes (i.e. institutes finan ced jointly by government and industry) and to 
individual firms and inventors.  A precondition for recei ving 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 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 b ecomes 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,  instruments and equipment, consulting bought-in 
research, etc. are eligible for aid.  Other possible 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 or NUTEK.  To the extent th at this occurs, the aid ceilings apply to the 
combined aid.   As from 1st of January 1996 rules and conditions  have been altered in accordance with the 
state aid rules within the European Community.  In  practice the new rules have been applied as from 
1st of January 1995.  G/SCM/N/123/EEC/Add.24 
Page 6  
 
 2.2   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 loans with conditional repayment, guarantees and grants with 
royalty repayments.  No calculated element of s ubsidy to individual enterprises, but high risk is 
accepted. 
 (b)  Amount of subsidy
 
  Net cost in SEK millions: Calendar year 2003:  27
1   
      2004:  292 
 
 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 SMEs and R&D. 
 (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 projects 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 G overnmental ordinance SFS 1996:880 (Förordning 
om finansiering genom Industrifonden). 
 
(g)  Rules and conditions
 
  Project financing:  The Fund concentrates on s upport 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 SMEs pay back with market interest ra te or royalty. Financin g from the Fund may be 
combined with regional support, in accordance with the state aid rules in the European Community. 
 
                                                     
 
1 The net cost figure for the year 2003 is not available, hence the reported figure is an estimate. 
2 The net cost figure for the year 2004 is not available, hence the reported figure is an estimate.  G/SCM/N/123/EEC/Add.24 
 Page 7 
 
 
 2.3   Energy Research Programme 
 
(a)  Form of subsidy  
  Grants or loans with conditional repayment. 
 
(b)  Amount of subsidy
 
  Net cost in SEK millions: Calendar year 2003:  79       2004:  63 
 
 The grants are divided on the receivers:   -  53 millions SEK to firms and individual inventors in 2003  -  26 million to research institutes and co-operative research institutes in 2003 
 
 -  32 millions SEK to firms and individual inventors in 2004  -  31 million to research institutes and co -operative research institutes in 20043345 
 
 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 to establish fundamental competence and expertise, to facilitate the transformation of th e Swedish energy system in order to reduce the 
environmental and climatic effects of energy syst ems.  The emphasis of th e programme is long-term, 
i.e. on technology that can be expected to be implemented beyond the year 2000.  The programme has 
its main focus on basic research, while applied research only plays a minor role.  (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.  Duration until further notice, i.e. has not been 
specified.  (e)  Statistical data
 
 
 The support is granted to a variety of proj ects and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects.  
 
(f)  Legal basis  
 
 As from June 1998 legal provisions are laid  down in Governmental ordinance SFS 1998:222 
(Förordning om statligt stöd till energiforskning).   G/SCM/N/123/EEC/Add.24 
Page 8  
 
 (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 firms.  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 pers onnel, materials and supp lies 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.   
2.4   The Energy Technology Fund 
 
(a)  Form of subsidy
 
  Grants, soft loans and guarantees.  (b)  Amount of subsidy
 
 
 Net cost in SEK millions: Calendar year 2003:  56  
   2004:  53  
  The grants are divided on the receivers: 
 
 -  15 millions SEK to firms and individual inventors in 2003  -  41 technological research institutes a nd co-operative research institutes in 2003 
  -  19 millions SEK to firms and individual inventors in 2004  -  34 technological research institutes a nd co-operative research institutes in 20043345 
 
 Support is granted to a variety of projects and cannot be broken down per unit. 
 
(c)  Policy objective
 
 
 The primary objective is aid for R&D with a focus on new technology for energy production 
and for environmental protection.  (d)  Duration
 
  The programme commenced as from 1st of July 1988.  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.  Duration until further notice, i.e. has not been specified. 
 (e)  Statistical data
 
  The support is granted to a variety of proj ects and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects. 
  G/SCM/N/123/EEC/Add.24 
 Page 9 
 
 
 (f)  Legal basis  
  The legal provisions are laid down in Go vernmental ordinance SFS 1998:653 (Förordning om 
statligt stöd till energiteknik).  
(g)  Rules and conditions
 
  The programme is administrated by the Swedis h Energy Agency, STEM.  Support is granted 
to the development, testing and de monstration of new techniques in the form of test plants, pilot 
projects, full scale plants, etc.  Support is also granted to applied research jointly co-financed by 
industry.  The beneficiary is normally the user of the new technique, mainly small-scale private 
energy producers and public utilities in the energy sector.  The maximum possible aid is 50 per cent of 
the project costs where SME:s can receive an additional 10 per cent.  
2.5   Grant for new Energy Technology 
 
(a)  Form of subsidy
 
  Grants.  (b) Amount of subsidy
 
 
 Net cost in SEK millions: Calendar year 2003:    87       2004:  174  
 Support is granted to a variety of projects and cannot be broken down per unit. 
 
(c)  Policy objective
 
  The primary objective is aid to R&D with a focus on developing technology for the use of sustainable sources of energy.  
(d)  Duration
 
  Duration until further notice, i.e. has not been specified.  (e)  Statistical data
 
 
 The support is granted to a variety of projects 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 G overnmental ordinance SFS 1998:654 (Förordning 
om energiteknikbidrag).  (g)  Rules and conditions
 
 
 The programme is administrated by the Swedis h Energy Agency, STEM.  Support is granted 
to industrial research in order to develop new t echnology based on sustainable sources of energy and 
for efficient use of energy in industrial processes.  The maximum possible aid to projects concerning industrial research is 50 per cent of the project costs.  The maximum support to projects aiming at a 
market introduction of products or services is 25 per cent of the project costs where SMEs can receive G/SCM/N/123/EEC/Add.24 
Page 10  
 
 an additional 10 per cent.  In acco rdance with the state aid rules within the European Community, 
there are restrictions to which extent the gr ant may be combined with other aid schemes. 
 
2.6  Transport- and Communication Research  
  This programme is as from 2001 administrated by the Swedish Agency for Innovation 
Systems, VINNOVA, as a part of the programme re ported above under 2.1, i.e.  Support for technical 
R&D through VINNOVA & NUTEK.  The legal provi sions are laid down in the Governmental 
ordinance 1995:1254 (Förordning om statligt stöd till teknisk forskning, industriellt utvecklingsarbete 
och uppfinnarverksamhet). 
 
2.7   Project Financing through the Fund for Swedish-Norwegian Indus trial Co-operation 
 
 The Fund for Swedish-Norwegian Industrial Co -operation is a foundation operating relatively 
independently from the Swedish and Norwegian Governments.  Th e Fund should earn enough money 
to cover the inflation on a long term basis.  This ca lls for market interest rates to compensate for a few 
inevitable losses.  The Fund for Swedish-Norwegian Industrial Co-operation was dissolved in the year 
2003.  (a)  Form of subsidy
 
 
 Loans with conditional repayment and venture capital. 
 (b)  Amount of subsidy
 
  Net cost in SEK millions: Calendar year 2003:  20 
      2004:    0 
 
 Support is granted to a variety of projects and cannot be broken down per unit. 
 
(c)  Policy objective
 
 
 The primary objective is aid to SMEs and for R&D. The objective of the Fund is to support 
development co-operation between Sw edish and Norwegian companies. 
 (d)  Duration
 
 
 The programme commenced as from 1st of Janua ry 1982.  Duration until the year 2001, with 
a automatic prolongation if the agreement/contract is not  withdrawn.  Terms of notice is 3 years.  The 
Fund for Swedish-Norwegian Industrial Co- operation was dissolved in the year 2003. 
 (e)  Statistical data
 
  The support is granted to a variety of projects 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 Governmental ordinance SFS 1990:45 
(Förordningen om stöd genom Fonden för svenskt- norskt industriellt samarb ete), amended through 
SFS 1998:49.   G/SCM/N/123/EEC/Add.24 
 Page 11 
 
 
 (g)  Rules and conditions  
  Costs connected with a development project ( seldom land or buildings) are eligible.  Maximal 
aid intensity is 50 per cent of eligible costs.  A pr econdition is that the project is a high risk project 
and has prospects to be commercially successful on a re latively short term basis.  All successful SMEs 
pay back with market interest rates or royalty.  Beneficiaries are Swedish and Norwegian companies 
in all industry except the extraction of oil and gas.  There are no formal restrictions to which extent 
financing through the Fund may be combined with other aid schemes other than the state aid rules of the European Community.  2.8  Support to energy maintenance in the south of Sweden 
 
(a)  Form of subsidy
 
  Grants. 
 
(b)  Amount of subsidy
 
  Net cost in SEK millions: Calendar year 2003:  26       2004:    0  
(c)  Policy objective
 
  The primary objective is aid to R&D with a focus on developing technology for the use of sustainable sources of energy.   
(d)  Duration
 
  The programme commenced as from 15 May 1999.  Duration until 31 December 2002.  
Programme terminated and the last payments during the year 2003.  (e)  Statistical data
 
 
 The support is granted to a variety of projects 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 Governmental ordinances: SFS 1998:62 (Förordning 
med instruktion för Delegationen för energiförs örjning i Sydsverige) and SFS 1999:213 (Förordning 
om statligt stöd till energiförsörjningen i Sydsverige).  G/SCM/N/123/EEC/Add.24 
Page 12  
 
 (g)  Rules and conditions
 
  The programme is administrated by the Delega tion for energy maintenance in the south of 
Sweden, DESS.  The aim is to ma intain the energy supply in the south of Sweden since the two 
nuclear power units in Barsebäck are going to be closed.
2  The total amount of support during the two 
years period is 400 SEK million where about 55 per cent goes to SMEs, 35 per cent to technological 
research institutes and co-operative research institutes, and 10 per cent to universities.  The support 
covers the entire cost of R&D-projects and maximum 50 per cent when the projects are industrial.  Projects aiming at an introduction of products on the market are covered with maximum 25 per cent 
of the costs. 10 per cent is added on these support-le vels if the receiver is a SMEs. Costs covered are: 
staff costs, operative expenses, costs of ma terials, and costs for consultants.   
 
3.  AID TO SMALL AND MEDIUM SIZED COMPANIES 
 3.1  The Regional Development Companies, ALMI 
 
 ALMI, Regional Development Companies, cons ist of a parent company and 22 regional 
subsidiaries.  The objective of ALMI is to stre ngthen the competitiveness and profitability of small 
and medium sized enterprises and to promote the formation of new firms.   (a)  Form of subsidy
 
 
 Loan guarantees, guarantees for bank guarantees,  loans, new business loans and development 
capital in the form of grants with royalties repayment and soft loans. 
 (b)  Amount of subsidy
 
 
 Net cost in SEK millions: Calendar year 2003:  135       2004:  160  
 Support is granted to a variety of projects and can not be broken down per unit. 
 (c)  Policy objective
 
  The primary objective of the scheme is aid to SMEs. The Regional Development Companies 
should strengthen the competitiveness and profitab ility of small and medium sized enterprises 
(defined as firms with less than 250 employees,  in accordance with th e European Commission 
definition) and to promote the formation of new firms. 
 (d)  Duration
 
  The programme for loans and guarantees comme nced in 1978, development capital in 1982 
and new business loans in 1993.  Duration until fu rther notice, i.e. has not been specified. 
 
(e)  Statistical data
 
 
 The support is granted to a variety of proj ects and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects. 
 
                                                      
2 The regions in the south of Sweden are limited to Skåne, Blekinge, south of Småland and south of 
Halland.  G/SCM/N/123/EEC/Add.24 
 Page 13 
 
 
 (f)  Legal basis  
  The legal provisions are laid down in the following Governmental ordinance: SFS 1994:1100 
(Förordning om statlig finansiering genom regi onala utvecklingsbolag), amended through SFS 
1995:1196. 
 
(g)  Rules and conditions
 
  General rules for all forms of financing:  Th e scheme is strictly complementary to private 
institutions. The scheme is intended for small firms,  i.e. firms with less than 250 employees.  (In 
practice, often under 50 employees.)  The Regiona l Development Companies have discretion in 
respect of the terms of the loans, i.e. the rate of  interest, duration and repayment holidays.  However, 
the financing should be on commercial terms and aiming at a reasonable yield and risk-spread.  
  The lending should be on commercial terms but on a high risk level.  Only firms that are 
profitable or have reasonable prospects to become  profitable are eligible.  The Companies also 
provide counseling. The scheme may be combin ed with regional suppor t and support from NUTEK, 
in accordance with the state aid rules in the European Community. 
  Loans: High risk and slightly above market rates. Bad collateral accepted. 
 
 Development capital: High risk and bad or no collateral accepted. 
  Guarantees: High risk and bad collate ral accepted. Guarantee fee required. 
  New business loans:  The loan to start-ups is either a personal loan made out to the 
entrepreneur (injected into the company as restricted  equity) or a risk-carrying (unsecured) debenture 
loan to the company.  Maximum is 30 per cent of  the amount of financing, but the limit is 
SEK 1 million.  The loan runs for 10-15 years and is  instalment-free during the first years.  The loan 
is interest-free for two years, with reduced interest for three years; from the sixth year market interest 
is paid.  An opening charge of 2 per cent on granted loans is payable and is deducted when the loan is 
paid. Security is normally not necessary. 
 
 Supplementary loan: If a company which has b een granted a loan for a new company requires 
further financing, a supplementary loan may be gran ted but only if there are good reasons for it, and if 
an application is received by the fund within three years of the loan for a new company being granted.  
Authorized applicants are private persons or compani es.  The applicant has to contribute with at least 
10 per cent of the capital.  All sorts of businesses are eligible. 
 
3.2  Support to Small Companies 
 
(a)  Form of subsidy  
 
 
 Grants. 
 (b)  Amount of subsidy
 
  Net cost in SEK millions: Calendar year 2003:  9 
      2004:  1,4 
 
 Support is granted to a variety of projects and can not be broken down per unit  
 G/SCM/N/123/EEC/Add.24 
Page 14  
 
 (c)  Policy objective
 
  The primary objective is promotion of empl oyment-generating investments within small 
companies and balance within regions.  
(d)  Duration
 
  Programme commenced in 1994. Dura tion until 31st of December 2001.  
 (e)  Statistical data
 
 
 Support is granted to a variety of projects 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 Gove rnmental ordinance: SFS 1994:773 (Förordning 
om tillfälligt småföretagsstöd) , altered latest through SFS 19 99:16 (Förordning om ändring i 
förordningen (1994:773) om småföretagarstöd).  (g)  Rules and conditions
 
 
 Support is handled by the County Administrative Boards (Länsstyrelse).  It is available to small companies throughout Sweden, with the excep tion of companies within the steel- or synthetic 
fibre industries.  Small companies are defined according to the European Commission definition as 
consisting of 50 employees or less and having an annual turnover of less than SEK 60 million.    
 
 Support is granted for investments estimated to  create long-term empl oyment opportunities.  
The prerequisites are that it does not contribute to the relocation of an activity from one county to another, nor to the reconstructing of an activity .  An activity that recently has undergone such 
reconstruction is also excluded from receiving suppor t.  Approved capital needed for the investment 
can not exceed SEK 20 million.  Support can be given with at most 15 per cent of total costs as long 
as it does not exceed the amount of funds need ed for the investment to take place. 
 
3.3   Industrial Development Centres  
 
(a)  Form of subsidy
 
 
 Grants.  (b)  Amount of subsidy
 
  Net cost in SEK millions: Calendar year 2003:  6 
      2004:  6 
 
 Support is granted to a variety of projects and cannot be broken down per unit  
 
(c)  Policy objective
 
 
 The primary objective is industrial developmen t of SME:s. Secondary objective is aid for 
R&D.    G/SCM/N/123/EEC/Add.24 
 Page 15 
 
 
 (d)  Duration  
  The programme commenced as from February 1998. Duration until 31st of December 2002.   (e)  Statistical data
 
 
 The support is granted to a variety of projects 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 Gove rnmental decisions 1997-01-30, 2000-01-25, and 
2001-12-13.  (g)  Rules and conditions
 
 
 The support is distributed in the form of gran ts to regional Industrial Development Centres.  
The overall objective of the centres is to promote technological development in SME:s through a network approach.  Feasibility studies are carried out within the Industrial Development Centres, 
aiming at subsequent transfer to as well as furt her development within SME:s as potential product 
concepts.  Even though the main rule is to cover actual costs incurred within the Industrial 
Development Centres, transfer could include an element of subsidy that is maximized to 50% in 
relation to the initial feasibility work costs.  The ac counted subsidy above refers to total costs within 
Industrial Development Centre for feasibility studies.  
4.   SUPPORT FOR EMPLOYMENT AND TRAINING 
 
 Labour market support is aimed at stimulating companies and authorities to hire individuals who face particular difficulties finding work, for instance youth, disabled, refugees and immigrants and elderly.  The support is generally given directly to the employer.  This kind of aid is intended to 
give an incentive for the employers to hire an individual they would not else have hired and to compensate for costs for training and equipment. 
 
 The scheme noted below, i.e. support for Voca tional Training is intended for companies and 
could be regarded to constitute a subsidy in the meaning of the WTO-agreement on subsidies.  As 
from 1999, previously reported programmes for Em ployment Aid and Training Aid have been 
amended in such a way that they are applied in a fully non-specific manner, thereby not constituting a 
subsidy in the meaning of the Ag reement on Subsidies and Countervailing Measures.  Hence they are 
not reported on in this report to the WTO.   
4.1   Support for Vocational Training 
 
(a)   Form of subsidy
 
 
 Regular grants for on-the-job-training.  G/SCM/N/123/EEC/Add.24 
Page 16  
 
 (b)  Amount of subsidy
 
  Net cost in SEK millions: Calendar year 2003:  26
3 
      2004:      0 
 
 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 to avoi d disruption in the production mainly in small 
and medium-sized companies due to lack of skilled workers, to avoid lay-off and to support workers 
in danger of losing their jobs.  (d)  Duration
 
 
 The programme commenced in 1984.  Duration has not specified. Programme terminated in 
2003.  (e)  Statistical data
 
 
 The support is granted to a variety of proj ects 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 G overnmental ordinance SFS 1994:938 (Förordning 
om bidrag till utbildning i företag). SFS 1994:93 8 has expired and has been replaced as from 
1 September 2001 with Governmental ordinan ce SFS 2001:626 (Stöd till utbildning av anställda). 
 (g)  Rules and conditions
 
  All firms, regardless of industry, are eligible.  Th e aid is in the form of a grant.  The rules in 
force as from 1 September 2001 allows for training aid up to 25 or 50 % of eligible costs during a 2 
year-period, though under all circumstances maxi mized to a sum amounting to 55 200 SEK per 
person.  The conditions for the scheme follow th e rules stipulated in European Commission 
Regulation no 68/2001 on the application of articl es 87 and 88 of the EC Treaty to training aid.  
 5.   EXPORT PROMOTION  
 
5.1   General Export Promotion 
 
(a)  Form of subsidy
 
 
 The Swedish Government maintains an export promotion regime, whic h is operated by the 
semi-governmental Swedish Trade Council.  The Council assists the Swedish industry by offering 
various international trade consulti ng and marketing services that are ma inly provided on a fee basis.  
A company operating in Sweden has an option to – for a fee – to become a member of the Council 
and it can thereby obtain a discount on services and publications. 
 
                                                      
3 Total support from both Governmental Ordinances – see paragraf (f) below - are included in the 
reported figure.  G/SCM/N/123/EEC/Add.24 
 Page 17 
 
 
  The state funding provided to the Council comprises the basic export-services such as 
answering trade-inquiries, providing inform ation on the Council’s activities, etc.  
 (b)  Amount of subsidy
 
 
 Net cost in SEK millions: Calendar year 2003:  0.3 
      2004:  0.5  (c)  Policy objective
 
 
 The primary objective is to promote Swedish e xports and the internationalization of Swedish 
industry in order to achieve a long-term  development of the Swedish economy. 
 (d)  Duration
 
 
 The Swedish Trade Council was formed in 1972 .  The government funding is allocated on a 
yearly basis but can vary somewhat from year  to year. Duration has not been specified. 
 (e)  Statistical data
 
 
 The support is granted to a variety of proj ects and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects.  
(f)  Legal basis
 
  An agreement between the government and th e General Swedish Export Association forms 
the legal basis for the Swedish Trade Council.  Th e latest revision of the agreement was made in 
1998.   (g)  Rules and conditions
 
  The services of the Swedish Trade Council are av ailable for all firms re gardless of industry 
and their export volumes.  The internalisation of  SMEs is given priority.  The Swedish Trade 
Council’s total turnover in 2004 was SEK 417 million.  
6.   REGIONAL AID TO ENTERPRISES 
  Regional aid to enterprises in Sweden is granted within the framework following schemes 
reported below.  The main goal of Swedish regional policy is to promote sustainable growth, freedom 
of choice and a good environment, so that equal living conditions are creat ed for the citizens in 
whatever part of the country they live.  An activ e regional policy has for many years been of major 
importance due to the special living-co nditions in large parts of Sweden.  
 6.1   Regional Development Grant 
 
(a)  Form of subsidy
 
  Grants for tangible or intangible investments.  The grants can be reclaimed if the objectives 
are not fulfilled. 
 G/SCM/N/123/EEC/Add.24 
Page 18  
 
 (b)  Amount of subsidy
 
  Net cost in SEK millions: Calendar year 2003:  328       2004:  361   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 Business Development Agency, NUTEK.  
The programme supports investments in tangible and intangible investments. The primary objective is 
regional aid in designated areas.  The secondary obj ective is aid to SMEs, employment and R&D in 
designated areas.  The main objective is to promot e development of industry in designated areas.  
 (d)  Duration
 
 
 The programme commenced as from 1st of July  1990. Duration formally decided for every 
new fiscal year.  (e)  Statistical data
 
  The support is granted to a variety of proj ects 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 Governmental Ordinance SFS 2000:279 
(Förordningen om  regionalt utvecklingsbidrag ) 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.  In order to promote equality between 
men and women there is also a rule that at least 40 per cent of the new jobs created in each project 
shall be reserved for each sex.  The total grant element may not exceed the maximal aid intensity 
allowed in each designated area. 
  Regional Development 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 35 per cent of 
eligible investment costs in aid area A and  25 per cent in aid area B.  In some cases the maximal 
intensity is lower and in exceptional cases it ca n be higher, maximum 75 per cent.  The maximum 
grant is 35 per cent of eligible investment in regi onal aid area A.  In aid area B the maximum grant is 
25 per cent.   G/SCM/N/123/EEC/Add.24 
 Page 19 
 
 
  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 Business Development Agency, NUTEK or the County Administrative 
Boards. 
 
6.2   Loans to regional investment Companies 
 
 The programme expired in the spring 2001.  No payments since the year 2001.  6.3   Employment Grant 
 
(a)  Form of subsidy
 
  Grants.  
(b)  Amount of subsidy
 
  Net cost in SEK millions: Calendar year 2003:  81       2004:  54  
 The aid intensity in regional aid area A:  A total sum of SEK 200 000 per additional year of 
work allocated according to a uniform scheme during a five 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 five year period.  
(c)  Policy objective
 
  The objective is regional aid to designated areas and employment in designated areas.  The scheme is aimed at creation of new employment by reducing the extra costs during the first years when taking on additional labour. 
 
(d)  Duration
 
  The programme commenced as from 1st of July 1990.  Duration formally decided for every 
new fiscal year.  
(e)  Statistical data
 
 
 The support is granted to a variety of secto rs and recipients, 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 G overnmental ordinance SFS 1998:996 (Förordning 
om sysselsättningsbidrag).   G/SCM/N/123/EEC/Add.24 
Page 20  
 
 (g)  Rules and conditions
 
  The programme is administrated by the C ounty Administrative Boards (Länsstyrelsen). 
Eligible for aid are public authorities, natural or ju ridical persons operating in Sweden and working in 
competitive sectors on market conditions. 
  
 In some cases aid can also be granted to non- profit associations.  There is a requirement that 
at least 40 per cent of the new jobs created is reserved for each sex. Grants are awarded according to the amount of new jobs created measured in additio nal man-years (i.e. total net increase of working 
hours performed by employees in companies applying and eligible for aid).  If the number of 
additional work is exceeding ten years, the app lications are examined from the company’s economic 
point of view.  Support is only granted for employment  that is considered fixed and the employer shall 
supply training in the form of theory or practice of at least 125 hours during a period of 2 years.   The aid intensity in regional aid area A: A total sum of SEK 200 000 per additional year of 
work allocated according to a uniform scheme during a five 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 five year period.  
Year Aid area A Aid area B 
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 
 
6.5   Regional Transport Grant 
 
(a)  Form of subsidy  
 
 Grants. 
 (b)  Amount of subsidy
 
  Net cost in SEK millions: Calendar year 2003:  357 
      2004:  359 
 
 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 fo rmally decided for every new fiscal year.  G/SCM/N/123/EEC/Add.24 
 Page 21 
 
 
  
(e)  Statistical data  
 
 The support is granted to a variety of secto rs and recipients, 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 Governmental ordinance: SFS 2000:281. 
(Förordningen om regionalt transportbidrag).  
 
(g)  Rules and conditions
 
  The programme is administrated by the Swedish Business Development Agency, NUTEK. 
 
 Eligible are Swedish natural or juridical pe rsons, 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.  As from 1 of July 1995 regional transport aid was terminated in 12 
municipalities outside the regional aid areas approve d by ESA, i.e. outside areas with population 
density above 12,5 inhabitant s per square kilometers. 
  The regional aid area for transport is divided into  five zones.  The percentages of the transport 
costs that are covered appear in the following table:  
Distance 
in kilometers  Transport 
aid zone 
2 Transport 
aid zone 
3 Transport 
aid zone 
4 Transport 
aid zone 
5 
401 – 700  15% 25% 30% 30% 
701 -  15% 25% 30% 45% 
 6.6   The 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, r esearch activities at universities and colleges, 
foundations of research bodies outside the university sphere).  As from 1994 the Fund 
has primarily concentrated on the loan operation. 
 G/SCM/N/123/EEC/Add.24 
Page 22  
 
 (a)  Form of subsidy
 
  Mainly loans at market conditions.  No subsid ies, risk-sharing.  Conditional loans, guarantees, 
grants and project support.  
(b)  Amount of subsidy
 
  Net cost in SEK millions: Calendar year 2003:  23       2004:   0   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 promote development mainly of SMEs, at present, in the 5 
northernmost counties.  (d)  Duration
 
  The scheme commenced in 1961. Duration has not been specified. 
 
(e)  Statistical data
 
 
 The support is granted to a variety of proj ects 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.  If loans from the Fund Northern Sweden are combined with Regional Development 
aid, the state financing may only amount to 70 per cent of investment costs in aid area 1 and 50 per cent in aid area 2 and structural aid areas.  The government can decide that these levels may be 
exceeded if there is a special priority. 
 
7.   ENVIRONMENT AID 
 
7.1   Grants for Local Investment Programmes for Ecologically Sustainable Development 
(LIP) 
 
(a)  Form of subsidy
 
  Grants.   G/SCM/N/123/EEC/Add.24 
 Page 23 
 
 
 (b)  Amount of subsidy  
  Net cost in SEK millions: Calendar year 2003:  1743        2004:    764   Support is granted to a variety of projects and cannot be broken down per unit. 
 
(c)  Policy objective
 
  Primary objective is to obtain higher levels of  environmental protection compared to what is 
demanded by international standards.  
 (d)  Duration
 
  The programme commenced as from February 1998 and expired as from 31 December 2001. 
 
(e)  Statistical data
 
 
 The support is granted to a variety of proj ects 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 Governmental ordinance SFS 1998:23 (Förordning 
om statliga bidrag till lokala investeringsprogram som ökar den ekologiska hållbarheten i samhället) 
and SFS 1999:755 (Förordning om ändring av 1998:23),  and SFS 2001:1 165 (Förordning om 
upphävande av 1998:23). 
 (g)  Rules and conditions
 
  Support is granted to local investment programmes administered by municipalities, which contributes to ecologically sustainable development through a.o. increased efficiency in the use of 
energy and other natural resources, use of renewabl e raw materials and recycling measures.  The grant 
is to be given to investments that are implemen ted beyond the present international standard, that 
develops the technology and that has obvious effects on employment.  Support to firms is not to cover 
more than 30 per cent of the additional costs that arise due to upgrading of investments into a more 
environmentally friendly direction. Investments should be restricted to land, buildings and equipment.  
When aid is given together with other forms of st ate aid the maximum aid level apply to the combined 
aid.   
7.2   Investment Grant for Certain Investments within the Energy Sector 
 
(a)  Form of subsidy
 
 
 Grants.  
                                                     
 
3 The reported figures for payments and the share to industry are estimated figures 
4 The reported figures for payments and the share to industry are estimated figures G/SCM/N/123/EEC/Add.24 
Page 24  
 
 (b)  Amount of subsidy
 
  Net cost in SEK millions: Calendar year 2003:   54       2004:  141   Support is granted to a variety of projects and cannot be broken down per unit. 
 
(c)  Policy objective
 
  Primary objective is to encourage use of su stainable sources of energy within electricity 
production.  
 (d)  Duration
 
  The programme started in February 1998 and is  running for a five year period. Programme 
was terminated in 2005. 
 (e)  Statistical data
 
 
 The support is granted to a variety of proj ects 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 Governmental ordinance SFS 1998:22 (Förordning 
om statligt bidrag till vissa investeringar inom energiområdet). 
 
(g)  Rules and conditions
 
  Support is granted to investments in combined  power and heating plants for bio-fuel, wind 
power stations and small-scale hy droelectric power stations.  Maxi mum support to investments in bio-
fuel combined power and heating plats is 25 per cent of the total investment costs.  Maximum aid to 
investments in wind power stations is 15 per cent of the costs that can receive support.  This 15 per 
cent can rise to maximum 30 per cent when cumulative aid is present.  Eligible costs are expenses for 
building, construction and equipment with the restri ction to the extra investment costs necessary for 
carrying through the project.   7.3  Support to Small Scale Electricity production 
 
(a) Form of subsidy
 
  Grant to production costs.  
(b) Amount of subsidy
 
  Net cost in SEK millions: Calendar year 2003: 105        2004:    0  
 Subsidy per unit amounts to 9 öre per KwH produced in small scale energy facilities. 
  G/SCM/N/123/EEC/Add.24 
 Page 25 
 
 
 (c) Policy objective  
  The objective of the support is to ensure vi ability for small scale producers of electricity, 
sourcing from environmental friendl y and renewable energy producti on, i.e. windmills, hydro power 
and CHP (Combined Heat and Power) plants.  To be  commercially competitive within the deregulated 
Swedish electricity market, small scale producers need compensation for additional production costs 
compared to operators providing electricity fr om traditional and non-renewable energy sources. 
 (d)  Duration
 
 
 Present aid scheme started 1st of November  1999. Duration until 31st of December 2002.  
The programme was terminated in the year 2003.  (e)  Statistical data
 
  The share of small scale and renewable electric ity production corresponds to 1,5  percent of 
total energy production. Trade effects are estimated to be negligible. 
   
(f)  Legal basis
 
  The legal provisions are laid down in SFS: 2000:614 (Förordning om stöd till småskalig 
elproduktion). 
 (g)  Rules and conditions
 
  Aid is awarded at an amount of 9 öre (about 0,01 euro) per KwH produced in small scale 
energy facilities.  For administrative reasons aid is given to purchasers of electricity produced by 
small scale producers, the latter defined as plants not  capable of delivering an output higher than 1500 
kW.  An agreement between producer and purchaser mu st be established, certifying that aid will be 
transferred to the producer.  
7.4  Support to Wind Power Production  
 
(a)   Form of subsidy
 
  Tax reduction.   
(b)   Amount of subsidy
 
  Net cost in SEK millions: Calendar year 2003:  123       2004:  100   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.   (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 trad itional and non-renewable energy sources.  However, due to G/SCM/N/123/EEC/Add.24 
Page 26  
 
 particularly high production costs for wind power, add itional compensation 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
 
 
 In January 2005 the European Commission a pproved the state aid until 31 December 2009.  
 (e)  Statistical data
 
  The share of small scale and renewable el ectricity production, including a.o. wind power, 
corresponds to 1,5  percent of total energy producti on. Trade effects are estimated to be negligible. 
   (f)  Legal basis
 
  The legal provisions are laid down in SFS: 1994:17 76 (Lag om skatt på energi), Act of Excise 
Duties on Energy, chapter 11, § 10.  
 (g)  Rules and conditions
 
  Tax relief is given amounting to 18,1 öre pe r KwH during 2001 and 2002.  The amount of aid 
corresponds to the tax level for energy paid by in dividual consumers during 2001.  For administrative 
reasons the relief is given to purchasers/distributors of electricity, which subsequently is to be 
transferred to the producers of wind power.  
7.5   Energy Tax Concession  
 (a)  Form of subsidy
 
  Tax reduction.  (b)  Amount of subsidy
 
 
 Net cost in SEK millions: Calendar year 2003:  4 750 
      2004:  8 330   The big step upwards is caused by a new legislation concerning heat and electricity production in combined heat and power plants, CHP:s.   The energy tax is exempted and the CO2-tax 
is lowered to 21 % for fuels used for heat production in CHP:s. 
 
 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.   G/SCM/N/123/EEC/Add.24 
 Page 27 
 
 
 (e)  Statistical data  
 
 The support is granted to a variety of proj ects 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 Act of Excise Duties on Energy (SFS 1994:1776), 
chapter 7.4, 9.2, 9.5 and 9.9.  The provisions ca me into force on July 1, 1997 (SFS 1997:479).  The 
provisions regarding the 1,2 per cent rule are f ound in paragraph 2 of the provisional regulations 
regarding SFS 1997:479. 
 (g)  Rules and conditions
 
  For enterprises within the industrial and ag ricultural sectors there was a general rule 
stipulating a 70% reduction of the CO2-tax for the use of fossil fuels during 2003.  From 2004 the 
reduction is increased to 79 %.   As concerns enterprises with energy intensive production, they also benefit from a special tax 
reduction;  Of the CO2 tax exceeding 0,8 % of the companies value of sales,  the enterprise only has 
to pay 24 % of the tax rate applicable accordi ng to the 70 % rule.  In addition, there are 
complementary rules applicable for certain types of fuels (coal and natural gas) when used for 
manufacturing products out of other mineral material s than metals.  According to these rules CO2 tax 
exceeding 1,2 % of sales value is deductible from th e total CO2 tax amount to be paid.  (The 0,8 % 
rule was introduced as from 1 July 1997.  The 1,2 % rule was, with somewhat different content, 
already in force prior to that date).     
 
7.6  Waste Tax Concession 
 
(a)  Form of subsidy
 
  Tax reduction. 
 
(b)  Amount of subsidy
 
  Net cost in SEK millions: Calendar year 2003: 748       2004:    0 
 
 Subsidy per unit is SEK 250 (27 Euro) per ton of waste, i.e. equivalent to the stipulated tax 
level.  (c)  Policy objective
 
 
 Tax reduction for certain categories of waste is  motivated for environmental reasons.  In cases 
where, according to present technology, it is not possi ble to process or recycle waste in order to avoid 
deposition, a tax reduction has been deem ed as an appropriate measure.   
 (d)  Duration
 
 
 As from 1 January 2000 until further notice.  Programme terminated in the year 2004. 
 G/SCM/N/123/EEC/Add.24 
Page 28  
 
 (e)  Statistical data
 
 
 The support is granted to a variety of proj ects 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 Act on Waste tax (SFS 1999:673). 
 (g)  Rules and conditions
 
 
 The objective of the introduction of a general ta x on waste is to give an incentive for reducing 
the total amounts of waste to be deposited.  In othe r words, the tax is supposed to encourage recycling 
or increased use of waste for energy purposes.  The stipulated tax to be paid for waste deposited is 
SEK 250 per ton. 
 
 However, for certain categories of (foremost toxic) waste it has b een acknowledged, that 
alternatives to deposition are very few and that full  tax reduction is appropria te in order to avoid 
environmentally negative effects, such as dumping or unsafe storage.   
7.7  Grants for Climate Investment Programmes (Klimp) 
 
(a)  Form of subsidy 
 
  Grants.  
(b)  Amount of subsidy
 
  Net cost in SEK millions: Calendar year 2003:    0       2004:   38  
 Support is granted to a variety of projects and cannot be broken down per unit. 
 
(c)  Policy objective
 
  Primary objective are to reduce emissions of greenhouse gases, to help to bring about 
conversion to alternative energy sources and to save energy.  The programmes focus on the areas of 
energy, waste management and transport sectors.   The programmes must also include measures 
focusing on public education and information.  (d)  Duration
 
  The first Klimp grants were allocated in De cember 2003.  The programme will be in effect 
until 2006.  
 (e)  Statistical data
 
 
 The support is granted to a variety of proj ects and sectors, therefore it is not possible to 
present statistical data permitting an assessment of trade effects.   G/SCM/N/123/EEC/Add.24 
 Page 29 
 
 
 (f)  Legal basis  
  The legal provisions are laid down in the G overnmental ordinance SFS 2003:262 (Förordning 
om statliga bidrag till klimatinvesteringsprogr am) and SFS 2003:566 (Förordning om ändring i 
förordningen (2003:262) om statliga bidrag till klimatinvesteringsprogram. 
 
(g)  Rules and conditions
 
  Support is granted to local climate investme nt programmes administered by municipalities, 
which contributes to the reduction of greenhouse gases in Sweden.  The programmes should be 
formed in cooperation with other participants.  
  Grants can be approved to specific measures or  to a package of measures without a complete 
investment programme if those measures are regarded as especially efficient in reducing the emissions of greenhouse gases.  Grants can only be given to cost effective measures. 
 G/SCM/N/123/EEC/Add.24 
Page 30  
 
 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 g overnment borrowing ra te and dividends 
received.  
 
 Tax concessions :  Estimates of revenue forgone. 
  Capital against Royalty
:  Estimated capital 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. the 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.  Subsidies to the Fisheries Sector  Introduction 
 
 This notification covers direct subsidies to th e fisheries sector.  The amounts reported relate in 
general to commitments made by the competent authorities during the fiscal years 2003 and 2004.  
 
 The description of the various schemes follows the outline suggested by the WTO.  However, 
effects on trade are difficult to assess and the notification contains, but for a few aid schemes, no information on effects on trade.  
 As regards investment aid to enterprises, “ec onomically viable enterprises” is referred to as 
one policy objective.  Before selecting a project, th e competent authorities shall also ensure that an 
economic analysis of the company, as well as a pr ofitability assessment of the project as such, is 
made.    G/SCM/N/123/EEC/Add.24 
 Page 31 
 
 
 1.  Investment aid to fishing enterprises 
 (1a) Aid for fleet renewal and modernisation of fishing vessels 
 
(a) Form of subsidy
 
 
 Grant  (b) Amount of subsidy
 (Total commitments) 
 
 2003 :  21 447 474 SEK (Community funds) 
     6 909 687 SEK (National funds)   2004
:  9 594 865 SEK (Community funds) 
   2 440 354 SEK (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 funds in the fisheries sector, for the new programming period 2000-2006, were adopted in Council Regulation (EC) No 2792/99. 
 (e) Statistical data
 
 
 Estimated number of recipients of aid in 2003:  approx. 34  Estimated number of recipients of aid in 2004:  approx. 93   Information concerning effects on trade is not available.   
(f) Legal basis
 
  Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 (g) Rules and conditions
 
 
 Recipients:  Fishing enterprises.   Categories of expenditures eligible for aid:  RSW tanks, safety equipment, selective gear, etc. 
 
 (1b)   Aid for adjustment of fishing effort  
 
(a) Form of subsidy
 
 
 Grant 
 G/SCM/N/123/EEC/Add.24 
Page 32  
 
 (b) Amount of subsidy
 (Total commitments) 
  2003:  42 948 198 SEK (Community Funds)    42 913 033 SEK (National Funds)  
 2004:  708 430 SEK (Community Funds) 
   708 431 SEK (National Funds)  (c) Policy objectives
 
 
 To achieve, a sustainable balance be tween resources and their exploitation. 
 (d) Duration
 
  Detailed rules and conditions for structural funds in the fisheries sector, for the new 
programming period 2000-2006, were adopted in Council Regulation (EC) No 2792/99. 
 (e) Statistical data
 
  Estimated number of recipients of aid in 2003:  6  Estimated number of recipients of aid in 2004:  2 
 
 Information concerning effects on trade is not available.   (f) Legal basis
 
 
 Ordinance on fishing, aquaculture and fisheries (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)  
2.  Investment aid to aquaculture enterprises 
 
(a) Form of subsidy
 
 
 Grant  (b) Amount of subsidy
 (Total commitments) 
 
 2003:  11 975 418 SEK (Community Funds) 
      2 453 497 SEK (National Funds)     2004:  1 304 511 SEK (Community Funds)       544 664 SEK (National Funds)    G/SCM/N/123/EEC/Add.24 
 Page 33 
 
 
  
(c) Policy objectives  
  To develop economically viable enterprises in the sector and assist structural improvements. 
 
(d) Duration
 
  Detailed rules and conditions for structural funds in the fisheries sector, for the new programming period 2000-2006, were adopted in Council Regulation (EC) No 2792/99. 
 
(e) Statistical data
 
  Estimated number of recipients of aid in 2003:  approx. 9  Estimated number of recipients of aid in 2004:  approx. 19  
 Information concerning effects on trade is not available.  
 (f) Legal basis
 
  Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 
(g) Rules and conditions
 
  Recipients:  Aquaculture enterprises and orga nisations concerned with  development projects 
within the aquaculture sector.  
 Maximum possible aid intensity: Participation ra tes are stipulated in Council Regulation (EC) 
No 2792/99 and in the SPD   Categories of expenditures eligible for aid:   -   construction, modernisat ion 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.  3.  Investment aid to fishing port facilities 
 
(a) Form of subsidy
 
  Grant  
(b) Amount of subsidy
 (Total commitments) 
  2003:   24 865 279 SEK (Community funds)     23 867 228 SEK (National funds)   
 2004:   8 867 020 SEK (Community funds) 
    6 493 163  SEK (National funds)  G/SCM/N/123/EEC/Add.24 
Page 34  
 
 (c) Policy objectives
 
  To improve and adapt structure in the fisheries sector.  (d) Duration
 
 
 Detailed rules and conditions for structural funds in the fisheries sector, for the new programming period 2000-2006, were adopted in Council Regulation (EC) No 2792/99. 
 (e) Statistical data
 
 
 Estimated number of recipients of aid in 2003: approx. 13  Estimated number of recipients of aid in 2004: approx. 30  Information concerning effects on trade is not available.   
(f) Legal basis
 
  Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 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 ra tes are stipulated in Council Regulation (EC) 
No 2792/99 and in the SPD   Categories of expenditures eligible for aid:  
 - Investments to improve the conditions unde r 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.  4.  Investment aid to inland fishing  
(a) Form of subsidy
 
  Grant  
(b) Amount of subsidy
 (Total commitments) 
  2003:   288 956 SEK (Community funds)        87 949 SEK (National funds)   
 2004:   269 565 SEK (Community funds) 
      89 586 SEK (National funds)   G/SCM/N/123/EEC/Add.24 
 Page 35 
 
 
 (c) Policy objectives:  
  To improve and maintain  a sustainable and a financially strong inland fishing sector.  (d) Duration
 
 
 Detailed rules and conditions for structural funds in the fisheries sector, for the new programming period 2000-2006, were adopted in Council Regulation (EC) No 2792/99. 
 (e) Statistical data
 
 
 Estimated number of recipients of aid in 2003:  approx. 7  Estimated number of recipients of aid in 2004:  approx. 12   Information concerning effects on trade is not available.  
 
(f) Legal basis
 
  Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 (g) Rules and conditions
 
 
 Recipients:    -   fishermen connected to inland fishing  
 Maximum possible aid intensity: Participation ra tes 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 
 
5.  Investment aid for processing and marketing 
 
(a) Form of subsidy
  
 
 Grant  (b) Amount of subsidy
 (Total commitments) 
  2003:  49 403 352 SEK (Community funds) 
     15 730 291 SEK (National funds) 
  2004:  9 947 127 SEK (Community funds)    2 879 204 SEK (National funds)  
(c) Policy objectives: 
 
  To develop economically viable enterprises in the sector and assist structural improvements. 
 G/SCM/N/123/EEC/Add.24 
Page 36  
 
 (d) Duration
 
  Detailed rules and conditions for structural funds in the fisheries sector, for the new programming period 2000-2006, were adopted in Council Regulation (EC) No 2792/99. 
 
(e) Statistical data
 
  Estimated number of recipients of aid in 2003: approx. 41  Estimated number of recipients of aid in 2004: approx. 45  
 Information concerning effects on trade is not available.  
 (f) Legal basis
 
  Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 
(g) Rules and conditions
 
  Recipients:  The Processing Industry   Maximum possible aid intensity: Participation ra tes are stipulated in Council Regulation (EC) 
No 2792/99 and in the SPD 
  Categories of expenditures eligible for aid:    -   The construction and acquis ition of buildings and installation 
 -   The acquisition of new equipment needed for the processing and marketing 
 -   The application of new technology  -   Investments to improve product quality and to reduce pollution  
6.  Investment aid for protection of coastal waters 
 (a) Form of subsidy
 
  Grant  (b) Amount of subsidy
 (Total commitments) 
 
 2003:  20 728 831 SEK (Community funds)    19 356 615 SEK (National funds)   2004:  15 174 500 SEK (Community funds)    14 183 206 SEK (National funds) 
 
(c) Policy objectives
 
  To achieve a sustainable balance be tween resources and their exploitation. 
 
(d) Duration
 
  Detailed rules and conditions for structural funds in the fisheries sector, for the new programming period 2000-2006, were adopted in Council Regulation (EC) No 2792/99. 
  G/SCM/N/123/EEC/Add.24 
 Page 37 
 
 
 (e) Statistical data  
   Estimated number of recipients of aid in 2003:   6  Estimated number of recipients of aid in 2004:   7   
 Information concerning effects on trade is not available.  
 (f) Legal basis
 
  Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 
(g) Rules and conditions
 
  Recipients:  Public institutions or bodies designated for that purpose by the competent 
authorities. 
 
 Maximum possible aid intensity: Participation ra tes are stipulated in Council Regulation (EC) 
No 2792/99 and in the SPD   Categories of expenditures eligible for aid:   
 -   Investments to improve water circulat ion and other habitat conservation measures. 
 -   Re-stocking of species of importance for coastal fishing  
7.  Collective investment aid in small- scale coastal and freshwater fishing 
 
(a) Form of subsidy
  
  Grant  (b) Amount of subsidy
 (Total commitments) 
 
 2003:  8 931 156 SEK (Community funds) 
   8 776 588 SEK (National funds)      2004:  3 455 657 SEK (Community funds)    3 359 578 SEK (National funds)    
 
(c) Policy objectives
: 
  To achieve an ecologically sustainable and financially strong fisheries sector.  (d) Duration
 
 
 Detailed rules and conditions for structural funds in the fisheries sector, for the new programming period 2000-2006, were adopted in Council Regulation (EC) No 2792/99. 
 G/SCM/N/123/EEC/Add.24 
Page 38  
 
 (e) Statistical data
 
  Estimated number of recipients of aid in 2003: 31  Estimated number of recipients of aid in 2004: 41  
 Information concerning effects on trade is not available.  
 (f) Legal basis
 
  Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 
(g) Rules and conditions
 
  Recipients: Associations of fishermen or fishermen families.  
 Maximum possible aid intensity: Participation ra tes 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 e quipment, improvement in landing facilities  
 
 
8.  Investment aid for socio-economic measures 
 
(a) Form of subsidy
 
 
 Grant  (b) Amount of subsidy
 (Total commitments) 
    2003:  198 683 SEK (Community funds) 
   198 683 SEK (National funds)    
  2004:  150 000 SEK (Community funds)    150 000 SEK (National funds)     
(c) Policy objectives
 
  To recruit young fishermen into the fishing sector.  (d) Duration
 
 
 Detailed rules and conditions for structural funds in the fisheries sector, for the new 
programming period 2000-2006, were adopted in Council Regulation (EC) No 2792/99. 
 (e) Statistical data
 
 
 Estimated number of recipients of aid in 2003: 1 
 Estimated number of recipients of aid in 2004: 2   Information concerning effects on trade is not available.    G/SCM/N/123/EEC/Add.24 
 Page 39 
 
 
 (f) Legal basis  
  Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 (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 for aid:    Purchases of used fishing vessels  9.  Aid for promotion/marketing 
 
(a) Form of subsidy
 
  Grant  
(b) Amount of subsidy
 (Total commitments) 
  2003:  3 272 617 SEK (Community funds)    2 786 059 SEK (National funds)  
 2004:  801 449 SEK (Community funds) 
   452 859 SEK (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 funds in the fisheries sector, for the new programming period 2000-2006, were adopted in Council Regulation (EC) No 2792/99. 
 
(e) Statistical data
 
  Estimated number of projects for which aid has been allocated in 2003:  15  Estimated number of projects for which aid has been allocated in 2004:    5  
 Information concerning effects on trade is not available.  
 (f) Legal basis
 
  Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 
(g) Rules and conditions
 
  Recipients:  Public bodies, fisheries in terest associations, private contractors 
 G/SCM/N/123/EEC/Add.24 
Page 40  
 
  Maximum possible aid intensity: Participation ra tes are stipulated in Council Regulation (EC) 
No 2792/99 and in the SPD   Categories of expenditures eligible for aid:   
 Consumers surveys and market studies, promotion campaigns, organisation of and 
participation in trade fairs, consumption advice,  services and advice to wholesalers and retailers. 
 
10.  Aid for operations by members of the trade  
(a) Form of subsidy: 
  Grant  (b) Amount of subsidy
 (Total commitments) 
 
 2003:  4 288 282 SEK (Community funds)    4 141 764 SEK (National funds)   2004:  3 023 917 SEK (Community funds)    1 127 152 SEK (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 funds in the fisheries sector, for the new programming period 2000-2006, were adopted in Council Regulation (EC) No 2792/99. 
 (e) Statistical data
 
 
 Estimated number of projects for which aid has been allocated in 2003:    8  Estimated number of projects for which aid has been allocated in 2004:   14   Information concerning effects on trade is not available.  
 
(f) Legal basis
 
  Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 (g) Rules and conditions
 
 
 Recipients:   Public bodies, fisheries interest associations, private contractors  
 Maximum possible aid intensity: Participation ra tes are stipulated in Council Regulation (EC) 
No 2792/99 and in the SPD   G/SCM/N/123/EEC/Add.24 
 Page 41 
 
 
 11. Aid for temporary cessation of fishing activities 
 
(a) Form of subsidy  
  Grant 
 
(b) Amount of subsidy
 (Total commitments) 
  2003:  5 475 132 SEK (Community funds)    4 625 046 SEK (National funds) 
 
 2004:  0 SEK (Community funds)    0 SEK (National funds)  (c) Policy objectives
 
 
 To achieve sustainable balance between resources and their exploitation.  (d) Duration
 
  Detailed rules and conditions for structural funds in the fisheries sector, for the new 
programming period 2000 2006, are adopted in  Council Regulation (EC) No 2792/99. 
 (e) Statistical data
 
  Estimated number of recipients of aid in 2003:  approx. 4  
 Estimated number of recipients of aid in 2004:  approx. 0 
 (f) Legal basis
 
  Ordinance on fishing, aquaculture and fisheries (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. 
 
12. Aid to studies and pilot projects 
 (a) Form of subsidy
 
  Grant  (b) Amount of subsidy
 (Total commitments) 
 
 2003:  17 137 858 SEK (Community funds)    22 866 819 SEK (National funds)   G/SCM/N/123/EEC/Add.24 
Page 42  
 
  2004:  20 448 061 SEK (Community funds) 
   22 860 742 SEK (National funds)  (c) Policy objectives: 
 
 
 To improve and adapt structures in the fisheries and aquaculture sector. 
 (d) Duration
 
  Detailed rules and conditions for structural funds in the fisheries sector, for the new 
programming period 2000-2006, were adopted in Council Regulation (EC) No 2792/99. 
 (e) Statistical data
 
  Estimated number of recipients of aid in 2003:   7 
 Estimated number of recipients of aid in 2004:  12 
  Information concerning effects on trade is not available.   (f) Legal basis
 
 
 Ordinance on fishing, aquaculture and fisheries (SFS 1994:1716, 1 January 1995) 
 (g) Rules and conditions
 
  Recipients: Universities, Public and private institutions, enterprises 
 
 Maximum possible aid intensity: Participation ra tes 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.  
13.  Payment of compensation to producers´ organisations 
 
(a) Form of subsidy
 
  Grant  (b) Amount of subsidy
 (Total commitments) 
 
 2003:       3 000 000 SEK  2004:       2 800 000 SEK  (c) Policy objective
 
 
 To grant financial compensation to producer s´ organizations for losses when fish has  
been withdrawn from the market.   G/SCM/N/123/EEC/Add.24 
 Page 43 
 
 
 (d) Duration  
  From 1 January 1995.  (e) Statistical data:
 
  
 Estimated number of recipients of aid in 2003: 2 (Producers organisations)          Estimated number of recipients of aid in 2004: 2 (Producers organisations)    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 organisation 
of the market in fishery and aquaculture products. 
 
(g) Rules and conditions
 
  Article 21 and 24 in Council Regulation No 104/2000  
__________