# L_2014201EN.01003301.xml

| 10.7.2014 | EN | Official Journal of the European Union | L 201/33 |
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10.7.2014

EN

Official Journal of the European Union

L 201/33

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EFTA SURVEILLANCE AUTHORITY DECISION

No 170/14/COL

of 24 April 2014

on the Icelandic regional aid map 2014-2020 (Iceland)

THE EFTA SURVEILLANCE AUTHORITY (‘THE AUTHORITY’)

Having regard to:

The Agreement on the European Economic Area (‘the EEA Agreement’), in particular to Articles 61 to 63 and Protocol 26 thereof,

The Agreement between the EFTA States on the Establishment of a Surveillance Authority and a Court of Justice (‘the Surveillance and Court Agreement’), in particular to Article 24 thereof,

Whereas:

1.   Procedure

Procedure

| (1) | By letter of 4 April 2014 the Icelandic authorities notified their regional aid map applicable from 1 July 2014 to 31 December 2020 (‘the regional aid map’) pursuant to paragraph 156 of the Authority's Guidelines on regional state aid for 2014–2020 (‘the RAG’) (1). These guidelines require the EFTA States that intend to grant regional aid to notify regional aid maps. |
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(1)

By letter of 4 April 2014 the Icelandic authorities notified their regional aid map applicable from 1 July 2014 to 31 December 2020 (‘the regional aid map’) pursuant to paragraph 156 of the Authority's Guidelines on regional state aid for 2014–2020 (‘the RAG’) (1). These guidelines require the EFTA States that intend to grant regional aid to notify regional aid maps.

1

| (2) | This decision represents the Authority's assessment of the compatibility of the notified map with the RAG in accordance with paragraph 157 of those guidelines. The map itself does not involve any state aid within the meaning of Article 61 of the EEA Agreement. The Authority's approval of the map does not constitute an authorisation to grant any aid. The authorisation of the map establishes, together with the RAG, the framework for granting regional investment aid. In that respect the map constitutes an integral part of the RAG (2). |
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(2)

This decision represents the Authority's assessment of the compatibility of the notified map with the RAG in accordance with paragraph 157 of those guidelines. The map itself does not involve any state aid within the meaning of Article 61 of the EEA Agreement. The Authority's approval of the map does not constitute an authorisation to grant any aid. The authorisation of the map establishes, together with the RAG, the framework for granting regional investment aid. In that respect the map constitutes an integral part of the RAG (2).

2

2.   Regions eligible under the population density test

Regions eligible under the population density test

2.1.   National population coverage and Statistical regions in Iceland

National population coverage and Statistical regions in Iceland

| (3) | A national population coverage of assisted regions in the EFTA States has been established in the RAG. The national population coverage for Iceland for 2014–2020 is 36,5 % (3). |
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(3)

A national population coverage of assisted regions in the EFTA States has been established in the RAG. The national population coverage for Iceland for 2014–2020 is 36,5 % (3).

3

| (4) | Iceland is divided into two Statistical regions (4) at level 3:






  — | the Capital region (Höfuðborgarsvæðið), and |
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(4)

Iceland is divided into two Statistical regions (4) at level 3:

4

—

the Capital region (Höfuðborgarsvæðið), and

Höfuðborgarsvæðið

| — | Iceland outside the Capital region (Landsbyggð). |
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—

Iceland outside the Capital region (Landsbyggð).

Landsbyggð

2.2.   The notified map

The notified map

| (5) | Due to the relatively high GDP per capita, no Icelandic region qualifies for the derogation under Article 61(3)(a) of the EEA Agreement (5). |
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(5)

Due to the relatively high GDP per capita, no Icelandic region qualifies for the derogation under Article 61(3)(a) of the EEA Agreement (5).

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| (6) | The Icelandic authorities have notified Iceland outside the Capital region qualifying for the derogation under Article 61(3)(c) of the EEA Agreement, based on low population density (6). |
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(6)

The Icelandic authorities have notified Iceland outside the Capital region qualifying for the derogation under Article 61(3)(c) of the EEA Agreement, based on low population density (6).

6

| (7) | The Icelandic authorities have submitted a map setting out the designated areas (set out as Annex to this Decision). The designated area, Iceland outside the Capital region, covers a land area of 99 258 km2. |
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(7)

The Icelandic authorities have submitted a map setting out the designated areas (set out as Annex to this Decision). The designated area, Iceland outside the Capital region, covers a land area of 99 258 km2.

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| (8) | Iceland outside the Capital region is a Statistical region at level 3 with less than 12,5 inhabitants per km2. Therefore, the designated area qualifies as a sparsely populated area (7). |
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(8)

Iceland outside the Capital region is a Statistical region at level 3 with less than 12,5 inhabitants per km2. Therefore, the designated area qualifies as a sparsely populated area (7).

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7

| (9) | The total population of Iceland on 1 January 2014 amounted to 325 671 inhabitants and the total population of the area covered by the notified regional aid map is, according to most recent data published by the national statistical office, 116 919 inhabitants (8). Consequently, the population covered by the notified regional aid map is 35,9 % of the Icelandic population. This is below the national population coverage established for Iceland in the RAG (36,5 %) (9). |
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(9)

The total population of Iceland on 1 January 2014 amounted to 325 671 inhabitants and the total population of the area covered by the notified regional aid map is, according to most recent data published by the national statistical office, 116 919 inhabitants (8). Consequently, the population covered by the notified regional aid map is 35,9 % of the Icelandic population. This is below the national population coverage established for Iceland in the RAG (36,5 %) (9).

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2.3.   Overview of municipalities covered by the regional aid map as notified

Overview of municipalities covered by the regional aid map as notified

| (10) | The number of municipalities covered by the notified regional aid map is 67.






  Municipalities | Municipality code |
| --- | --- | --- |
| Reykjanesbær | 2000 |
| Grindavíkurbær | 2300 |
| Sandgerðisbær | 2503 |
| Sveitarfélagið Garður | 2504 |
| Sveitarfélagið Vogar | 2506 |
| Akraneskaupstaður | 3000 |
| Skorradalshreppur | 3506 |
| Hvalfjarðarsveit | 3511 |
| Borgarbyggð | 3609 |
| Grundarfjarðarbær | 3709 |
| Helgafellssveit | 3710 |
| Stykkishólmsbær | 3711 |
| Eyja- og Miklaholtshreppur | 3713 |
| Snæfellsbær | 3714 |
| Dalabyggð | 3811 |
| Bolungarvíkurkaupstaður | 4100 |
| Ísafjarðarbær | 4200 |
| Reykhólahreppur | 4502 |
| Tálknafjarðarhreppur | 4604 |
| Vesturbyggð | 4607 |
| Súðavíkurhreppur | 4803 |
| Árneshreppur | 4901 |
| Kaldrananeshreppur | 4902 |
| Strandabyggð | 4911 |
| Sveitarfélagið Skagafjörður | 5200 |
| Húnaþing vestra | 5508 |
| Blönduósbær | 5604 |
| Sveitarfélagið Skagaströnd | 5609 |
| Skagabyggð | 5611 |
| Húnavatnshreppur | 5612 |
| Akrahreppur | 5706 |
| Akureyrarkaupstaður | 6000 |
| Norðurþing | 6100 |
| Fjallabyggð | 6250 |
| Dalvíkurbyggð | 6400 |
| Eyjafjarðarsveit | 6513 |
| Hörgársveit | 6515 |
| Svalbarðsstrandarhreppur | 6601 |
| Grýtubakkahreppur | 6602 |
| Skútustaðahreppur | 6607 |
| Tjörneshreppur | 6611 |
| Þingeyjarsveit | 6612 |
| Svalbarðshreppur | 6706 |
| Langanesbyggð | 6709 |
| Seyðisfjarðarkaupstaður | 7000 |
| Fjarðabyggð | 7300 |
| Vopnafjarðarhreppur | 7502 |
| Fljótsdalshreppur | 7505 |
| Borgarfjarðarhreppur | 7509 |
| Breiðdalshreppur | 7613 |
| Djúpavogshreppur | 7617 |
| Fljótsdalshérað | 7620 |
| Sveitarfélagið Hornafjörður | 7708 |
| Vestmannaeyjabær | 8000 |
| Sveitarfélagið Árborg | 8200 |
| Mýrdalshreppur | 8508 |
| Skaftárhreppur | 8509 |
| Ásahreppur | 8610 |
| Rangárþing eystra | 8613 |
| Rangárþing ytra | 8614 |
| Hrunamannahreppur | 8710 |
| Hveragerðisbær | 8716 |
| Sveitarfélagið Ölfus | 8717 |
| Grímsnes- og Grafningshreppur | 8719 |
| Skeiða- og Gnúpverjahreppur | 8720 |
| Bláskógabyggð | 8721 |
| Flóahreppur | 8722 |

(10)

The number of municipalities covered by the notified regional aid map is 67.

Municipalities

Municipality code

Reykjanesbær

2000

Grindavíkurbær

2300

Sandgerðisbær

2503

Sveitarfélagið Garður

2504

Sveitarfélagið Vogar

2506

Akraneskaupstaður

3000

Skorradalshreppur

3506

Hvalfjarðarsveit

3511

Borgarbyggð

3609

Grundarfjarðarbær

3709

Helgafellssveit

3710

Stykkishólmsbær

3711

Eyja- og Miklaholtshreppur

3713

Snæfellsbær

3714

Dalabyggð

3811

Bolungarvíkurkaupstaður

4100

Ísafjarðarbær

4200

Reykhólahreppur

4502

Tálknafjarðarhreppur

4604

Vesturbyggð

4607

Súðavíkurhreppur

4803

Árneshreppur

4901

Kaldrananeshreppur

4902

Strandabyggð

4911

Sveitarfélagið Skagafjörður

5200

Húnaþing vestra

5508

Blönduósbær

5604

Sveitarfélagið Skagaströnd

5609

Skagabyggð

5611

Húnavatnshreppur

5612

Akrahreppur

5706

Akureyrarkaupstaður

6000

Norðurþing

6100

Fjallabyggð

6250

Dalvíkurbyggð

6400

Eyjafjarðarsveit

6513

Hörgársveit

6515

Svalbarðsstrandarhreppur

6601

Grýtubakkahreppur

6602

Skútustaðahreppur

6607

Tjörneshreppur

6611

Þingeyjarsveit

6612

Svalbarðshreppur

6706

Langanesbyggð

6709

Seyðisfjarðarkaupstaður

7000

Fjarðabyggð

7300

Vopnafjarðarhreppur

7502

Fljótsdalshreppur

7505

Borgarfjarðarhreppur

7509

Breiðdalshreppur

7613

Djúpavogshreppur

7617

Fljótsdalshérað

7620

Sveitarfélagið Hornafjörður

7708

Vestmannaeyjabær

8000

Sveitarfélagið Árborg

8200

Mýrdalshreppur

8508

Skaftárhreppur

8509

Ásahreppur

8610

Rangárþing eystra

8613

Rangárþing ytra

8614

Hrunamannahreppur

8710

Hveragerðisbær

8716

Sveitarfélagið Ölfus

8717

Grímsnes- og Grafningshreppur

8719

Skeiða- og Gnúpverjahreppur

8720

Bláskógabyggð

8721

Flóahreppur

8722

| (11) | The table below provides an overview of all the municipalities, together with municipality codes (10), included in the regional aid map. |
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(11)

The table below provides an overview of all the municipalities, together with municipality codes (10), included in the regional aid map.

10

3.   Aid intensities

Aid intensities

| (12) | The eligible area will have a general aid ceiling of 15 % gross grant equivalent (GGE). This will be supplemented by an increase of 20 % for small enterprises or 10 % for medium-sized enterprises. These aid intensities comply with the thresholds set out in paragraphs 154 and 155 of the RAG. |
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(12)

The eligible area will have a general aid ceiling of 15 % gross grant equivalent (GGE). This will be supplemented by an increase of 20 % for small enterprises or 10 % for medium-sized enterprises. These aid intensities comply with the thresholds set out in paragraphs 154 and 155 of the RAG.

4.   Duration and review

Duration and review

| (13) | In compliance with paragraph 156 of the RAG, the notified map will be in force from 1 July 2014 to 31 December 2020. If necessary, as provided for in paragraph 161 of the RAG, the notified map may be subject to a mid-term review in June 2016 to identify possible areas that may be eligible for regional aid under Article 61(3)(a) of the EEA Agreement and the level of the aid intensity corresponding to their GDP per capita. |
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(13)

In compliance with paragraph 156 of the RAG, the notified map will be in force from 1 July 2014 to 31 December 2020. If necessary, as provided for in paragraph 161 of the RAG, the notified map may be subject to a mid-term review in June 2016 to identify possible areas that may be eligible for regional aid under Article 61(3)(a) of the EEA Agreement and the level of the aid intensity corresponding to their GDP per capita.

| (14) | In addition, this decision does not restrict the powers of the Authority to review the map in accordance with Article 1(1) in Part I of Protocol 3 to the Surveillance and Court Agreement, if necessary, before the end of the period referred to above. |
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(14)

In addition, this decision does not restrict the powers of the Authority to review the map in accordance with Article 1(1) in Part I of Protocol 3 to the Surveillance and Court Agreement, if necessary, before the end of the period referred to above.

5.   Conclusion — the regional aid map is compatible with the RAG

Conclusion — the regional aid map is compatible with the RAG

| (15) | On the basis of the foregoing assessment, the Authority considers that the Icelandic regional aid map for 2014-2020 is compatible with the principles set out in the RAG as the area covered does not exceed the eligible population coverage as set out by paragraph 142 of the RAG. |
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(15)

On the basis of the foregoing assessment, the Authority considers that the Icelandic regional aid map for 2014-2020 is compatible with the principles set out in the RAG as the area covered does not exceed the eligible population coverage as set out by paragraph 142 of the RAG.

HAS ADOPTED THIS DECISION:

Article 1

The Icelandic regional aid map 2014-2020 is compatible with the principles set out in the RAG. The map, set out in the Annex to this Decision, hereby constitutes an integral part of the RAG.

Article 2

This Decision is addressed to the Republic of Iceland.

Article 3

Only the English language version of this decision is authentic.

Done at Brussels, 24 April 2014.

For the EFTA Surveillance Authority

Oda Helen SLETNES

President

Frank BÜCHEL

College member

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(1)  Adopted by Decision No 407/13/COL of 23 October 2013.

1

(2)  RAG paragraph 157.

2

(3)  RAG paragraph 142. In keeping with paragraph 140 of the RAG, the population of the assisted area is lower than that of the unassisted areas.

3

(4)  RAG paragraph 142.

4

(5)  RAG paragraph 142(a) and 143-144.

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(6)  RAG paragraphs 148 and 149.

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(7)  RAG paragraph 149.

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(8)  Information submitted by the Icelandic authorities, available at http://www.hagstofa.is/?PageID=2593&src=https://rannsokn.hagstofa.is/pxis/Dialog/varval.asp?ma=MAN02005%26ti=Mannfj%F6ldi+eftir+kyni%2C+aldri+og+sveitarf%E9l%F6gum+1998%2D2013+%2D+Sveitarf%E9lagaskipan+1%2E+jan %FAar+2014%26path=../Database/mannfjoldi/sveitarfelog/%26lang=3%26units=Fjöldi

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(9)  RAG paragraph 142.

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(10)  See map in the Annex to this Decision.

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ANNEX

Regional aid map for Iceland 1 July 2014–31 December 2020

The green area is eligible for regional aid according to the proposal

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