EFTA Surveillance Authority Decision No 170/14/COL of 24 April 2014 on the Icelandic regional aid map 2014-2020 (Iceland)
Date: 2014-04-24
Institutions: EFTA Surveillance Authority
Subjects: Iceland, State aid, control of State aid, regional aid




L_2014201EN.01003301.xml










10.7.2014   


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.




ANNEX



Regional aid map for Iceland 1 July 2014–31 December 2020
The green area is eligible for regional aid according to the proposal