IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Nov 2009 | Removal date: open ended
Still in force

Loan guarantee

On 2 October 2009 Sweden notified a State guarantee measure in favour of Saab Automobile AB. Saab is currently 100%-owned by General Motors of Canada Ltd, the latter being wholly owned by General Motors Corporation.
 
A dramatic reduction in demand in the second half of 2008 has led to serious problem for car makers. To provide support for the car sector in the present financial crisis with the objective of preserving an industry with the potential to be competitive, the Swedish government has brought forward a series of measures.
 
As part of this package, the Swedish Parliament had given the Government powers to issue State guarantees to undertakings in the automotive sector, to be used as collateral for loans from the European Investment Bank (EIB) intended to finance a transition to green technologies. Based on the powers it has received from Parliament, on 11 June 2009 the Swedish Government instructed the Swedish National Debt Officeto start negotiations with Saab on the State guarantee (400 million Euros by 2 parts) to be issued for the EIB loan.
 
The Commission concluded that the measure contains state aid and gave the following assessment:
" As regards the application of the State aid criteria of Article 107(1) TFEU to guarantees A and B, the Commission considers the following. As the guarantees are based on powers given by Parliament and can be issued only upon express decision by the Government, the decision to grant the guarantees is clearly imputable to the State. The guarantees are granted from State resources since, in the event the Swedish state would actually have to pay out money under the guarantees, the necessary funds would be drawn from the central State budget, which is consequently burdened by the financial risk linked to the guarantees. The guarantees are also selective since the Government has discretion to choose the undertakings that will benefit from such guarantees. Finally, as there is extensive trade in cars and car parts between several operators within the European Union, the advantage granted to Saab by means of the guarantees would be liable to affect competition and trade between the Member States." (par. 26 of the letter from the EC to Sweden - Brussels, 8.2.2010 C(2010)818 final)
 
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.
 
 
 

AFFECTED COUNTRIES

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AFFECTED SECTORS AND PRODUCTS

491 Motor vehicles, trailers & semi-trailers; parts
8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars.
870310 Vehicles specially designed for travelling on snow; golf cars and similar vehicles
870321 Of a cylinder capacity not exceeding 1,000 cc
870322 Of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc
870323 Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc
870324 Of a cylinder capacity exceeding 3,000 cc
870331 Of a cylinder capacity not exceeding 1,500 cc
870332 Of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc
870333 Of a cylinder capacity exceeding 2,500 cc
870390 Other

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