State aid: Commission approves modification of Swedish rent rebate scheme to support sectors affected by coronavirus outbreak

The European Commission has found the modification of an existing Swedish scheme to support tenants operating in several sectors that have been affected by the coronavirus outbreak to be in line with the State aid Temporary Framework. The existing scheme was approved by the Commission on 15 April 2020 (SA.56972) and prolonged in February 2021 (SA.61672). Sweden notified the following modifications to the scheme: (i) an increase in the budget, from approximately €453 million (SEK 5 billion) to approximately €795 million (SEK 8 billion); and (ii) the extension of the measure to cover up to 50% of rent reductions costs negotiated between landlords and tenants until 31 May 2021, for the rental period between 1 January and 31 March 2021. The Commission found that the amended scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the support will not exceed €1.8 million per beneficiary; and (ii) the aid will be granted no later than 31 December 2021. The Commission concluded that the scheme, as modified, remains necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions of the Temporary Framework. On this basis, the Commission approved the measure under EU State aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.62272 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.