EN Official Journal of the European Union L 201/33

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

(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.

(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. Regions eligible under the population density test

2.1. 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).

(4) Iceland is divided into two Statistical regions (4) at level 3: — the Capital region (Höfuðborgarsvæðið), and — Iceland outside the Capital region (Landsbyggð).

2.2. 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).

(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).

(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.

(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).

(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).

2.3. 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

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

3. 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.

4. 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.

(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

(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

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

(2) RAG paragraph 157.

(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.

(4) RAG paragraph 142.

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

(6) RAG paragraphs 148 and 149.

(7) RAG paragraph 149.

(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

(9) RAG paragraph 142.

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