ANNOUNCEMENT 30 Dec 2010

In December 2010, the government of Iceland announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 30 Dec 2010 | Removal date: 28 Apr 2016
Still in force

Financial grant

 On 30 December 2010, the Icelandic government signed an investment agreement with a number of subsidiaries belonging to the Italian-owned aluminium foil producer Becromal with manufacturing locations in Iceland.
The agreement covered the building of an aluminium foil anodizing plant in Akureyri, with projected costs of 117.25 million EUR. The company would receive a 20% reduction in social security charges, exemption from excise duties and a reduction of stamp duties. However, the exact amount of state aid was not provided by the authorities.
The state aid is part of the Investment Incentive Scheme launched by the Icelandic government in 2010 (cf. Related Measures). It encompasses direct grants, tax concessions and land sales under market prices to incentivise investment projects.
On 10 March 2016, the EFTA Surveillance Authority published its decision arguing the state aid offered to Becromal was incompatible with EU law and ordered Iceland to recover the full amount of aid including compound interest within two months after the decision. Hence, this measure is no longer classified as implemented.
Based on the usually applied computation of affected trading partners, Italy should have been added (together with Germany) to the list. However, as the company receiving state support belonged to an Italian corporation, Italy was not added to the list.
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 SECTORS

 

AFFECTED PRODUCTS