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Carl BILDT Chef För Utrikesdepartementet Arvfurstens Palats Gustav Adolfs Torg 1 SE - 103 39 Stockholm

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Carl BILDT Chef För Utrikesdepartementet Arvfurstens Palats Gustav Adolfs Torg 1 SE - 103 39 Stockholm EUROPEAN COMMISSION Brussels, 20.XII.2006 C(2006) 6719 PUBLIC VERSION WORKING LANGUAGE This document is made available for information purposes only. Subject: State aid N 431/2006 – Sweden Regional aid map 2007-2013 Sir, 1. PROCEDURE (1) By electronic notification dated 30 June 2006, registered at the Commission on the same day the Swedish authorities notified their regional aid map for the period 1.1.2007 – 31.12.2013. (2) By letter of 11 August 2006 (D/56958) the Commission services asked for complementary information, which the Swedish authorities provided by letter of 11 September 2006, registered at the Commission on the same day (A/37090). (3) By letter of 27 October 2006 (D/59257) the Commission services asked for further information, which the Swedish authorities provided by letter of 28 November 2006, registered at the Commission on the same day (A/39655). Carl BILDT Chef för Utrikesdepartementet Arvfurstens palats Gustav Adolfs torg 1 SE - 103 39 Stockholm Commission européenne, B-1049 Bruxelles – Belgique Europese Commissie, B-1049 Brussel – België Telefon: 00-32-(0)2-299.11.11. (4) On 21 December 2005, the Commission adopted the Guidelines on national regional aid for 2007-20131 (hereinafter “RAG”). In accordance with paragraph 100 of the RAG each Member State should notify to the Commission following the procedure of Article 88(3) of the Treaty, a single regional aid map covering its entire national territory which will apply for the period 2007-2013. In accordance with paragraph 101, the approved regional aid map is to be published in the Official Journal of the European Union, and will be considered an integral part of the RAG. 2. DESCRIPTION (5) For the period between 1 January 2000 and 31 December 20062 Sweden had regions covering 15.9% of its population eligible under the derogation of Article 87(3)(c) of the EC Treaty. The Swedish authorities propose that for the period 2007-2013 regions covering 15.3% of their population3 should be eligible to receive regional investment aid under the derogation of Article 87(3)(c) of the EC Treaty at an aid intensity of 15% GGE4 or 10% GGE. (6) The proposed aid ceilings are those for investments by large enterprises. For medium-sized enterprises5 these aid ceilings can be increased6 by 10 percentage points and for small enterprises7 by 20 percentage points. (7) The Swedish authorities propose a series of regions for eligibility for regional investment aid under Article 87(3)(c) of the EC Treaty on the basis that they meet the conditions of at least one of the sub-paragraphs 30(b), 30(c) or 30(h) of the RAG: 2.1. Low population density regions proposed for the whole period 2007-2013 for eligibility under Article 87(3)(c) (8) The following NUTS-III regions are proposed in their entirety as low population density regions for eligibility under the derogation of Article 87(3)(c) of the EC Treaty for the whole period 2007-2013 at an aid ceiling of 15% GGE, with the exception of the population centres8 of Luleå, Umeå and Sundsvall, which together have a population of 170,096: Inhab/km² proposed population – SE071 Västernorrland 9 194,573 – SE072 Jämtland 2.6 127,028 – SE081 Västerbotten 3.3 182,177 1 Guidelines on national regional aid for 2007-2013, OJ C 54, 4.3.2006, p. 13. 2 Commission decision of 17 April 2000 concerning State aid N 639/1999 – Sweden – Regional aid map 2000-2006 (SG(99)D/103189). 3 All population figures used in this decision refer to 31.12.2005. 4 GGE – Gross Grant Equivalent 5 As defined in the Annex of Commission Regulation (EC) No 364/2004 of 25 February 2004 amending Regulation (EC) 70/2001, OJ L 63, 28.2.2004, p. 22, or any successor regulation. 6 Except for aid awarded in the transport sector and aid for large investment projects. 7 See footnote 5. 8 As defined by Statistics Sweden in its publication on Localities 2005 of 31.12.2005. 2 – SE082 Norrbotten 2.1 206,282 – Total proposed population 710,060 2.2. Article 87(3)(c) regions proposed for the whole period 2007-2013 (9) Parts of the following NUTS-III regions are proposed for eligibility under the derogation of Article 87(3)(c) of the EC Treaty with an aid ceiling of 15% GGE for the whole period 2007-2013: Population9 – SE062 Dalarna: The municipalities of Malung 10,513 Orsa 7,020 Vansbro 7,061 Älvdalen 7,445 Mora 20,212 Ludvika 25,537 Smedjebacken 10,812 Rättvik 10,886 Avesta 21,954 Hedemora 15,494 These municipalities have a total population of 136,934. – SE063 Gävleborg: The municipalities of Ljusdal 19,384 Bollnäs 26,237 Hudiksvall 37,004 Nordanstig 9,847 Ovanåker 11,873 Söderhamn 26,506 Hofors 10,197 Ockelbo 6,051 These municipalities have a total population of 147,099. – SE061 Värmland: The municipalities of Torsby 12,960 Arvika 26,265 Eda 8,601 Filipstad 11,017 Hagfors 13,337 Munkfors 3,995 Sunne 13,586 Kristinehamn 23,899 9 Population on 31.12.2005. 3 Stofors 4,542 Årjäng 9,800 Säffle 16,080 These municipalities have a total population of 144,082. – SE024 Örebro: The municipalities of Hällefors 7,627 Ljusnarsberg 5,317 Karlskoga 30,185 Degerfors 10,093 Laxå 6,136 These municipalities have a total population of 59,358. – SE025 Västmanland: The municipalities of Fagersta 12,270 Norberg 5,866 Skinnskatteberg 4,761 These municipalities have a total population of 22,897. – SE093 Kalmar: The municipalities of Västervik 36,505 Vimmerby 15,613 Hultsfred 14,456 Högsby 6,066 These municipalities have a total population of 72,640. (10) Parts of the following NUTS-III region are proposed for eligibility under the derogation of Article 87(3)(c) of the EC Treaty with an aid ceiling of 10% GGE for the whole period 2007-2013: – SE0A2 Västra Götaland: The municipalities of Bengtsfors 10,225 Dals-Ed 4,891 Åmål 12,737 Mellerud 9,638 Färgelanda 6,824 Karlsborg 6,898 Töreboda 9,470 Gullspång 5,595 Mariestad 23,895 These municipalities have a total population of 90,173. 3. ASSESSMENT (11) Annex V of the RAG allocated Sweden a total population coverage of 15.3% eligible for national regional state aid for the period 2007-2013 under the derogation of Article 87(3)(c) of the EC Treaty. The total population of Sweden on 4 31.12.2005 amounts to 9,047,752. The maximum population eligible for coverage for 2007-2013 is therefore 1,384,306. 3.1. Article 87(3)(c): low population density regions proposed for the whole period 2007-2013 (12) The low population density regions are defined in paragraph 30(b) of the RAG as areas made up of NUTS-III geographic regions with a population density of less than 12.5 inhabitants per km². (13) The following NUTS-III regions have a population density of less than 12.5 inhabitants per km² : Inhab/km² total population – SE071 Västernorrland 9 243,736 – SE072 Jämtland 2.6 127,028 – SE081 Västerbotten 3.3 257,652 – SE082 Norrbotten 2.1 251,740 – SE062 Dalarna 6 275,755 – Total population 1,155,911 (14) The Swedish authorities proposed the entire NUTS-III regions of SE071 Västernorrland, SE072 Jämtland, SE081 Västerbotten and SE082 Norrbotten, with the exception of the population centres of Luleå, Umeå and Sundsvall for eligibility under the derogation of paragraph 30(b) at an aid ceiling of 15%. The total population of these proposed regions is 710,060, which represents 7.85% of the Swedish population. (15) All the regions are situated within NUTS-III regions that have a population density of less than 12.5 inhabitants per square kilometre. The criteria of paragraph 30(b) of the RAG are thus met. 3.2. Article 87(3)(c) regions proposed for the whole period 2007-2013 (16) In accordance with paragraph 30(c) of the RAG, Member States may select regions which form contiguous zones with a minimum population of at least 100,000 and which are located within either NUTS-II of NUTS-III regions which have either a GDP per capita of less than the EU-25 average, or which have an unemployment rate which is higher than 115% of the national average. (17) The following proposed NUTS-III regions have all a GDP per capita of less than the EU-25 average or an unemployment rate above 115% of the national average: GDP10 Unemployment – SE063 Gävleborg 95.27% 153.0% – SE025 Västmanland 99.80% – SE062 Dalarna 99.97% 116.8% (18) The Swedish authorities propose under paragraph 30(c) of the RAG one contiguous zone at an aid ceiling of 15% and which spreads over the above mentioned three 10 Most recent three years of Eurostat data covering the years 2001-2003. 5 NUTS-III regions. The zone consists of the following municipalities: in SE063 Gävleborg: Ljusdal, Bollnäs, Hofors, Hudiksvall, Nordanstig, Ovanåker, Söderhamn and Ockelbo, in SE025 Västmanland: Fagersta, Norberg and Skinnskatteberg; in SE062 Dalarna: Malung, Orsa, Vansbro, Älvdalen, Mora, Ludvika, Smedjebacken, Rättvik, Avesta and Hedemora. The total population of the zone is 306,930. (19) It has to be observed that SE062 Dalarna apart from having a GDP below the EU average fulfils also the low population density criterion. (20) The total population proposed under the subtitle 3.2 of this decision amounts to 306,930, which represents 3.39% of the Swedish population. (21) Furthermore, the Swedish authorities correctly apply the aid intensity of 15% GGE as all the NUTS-III regions in question have a GDP below EU-25 average.
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