EUROPEAN COMMISSION

Brussels, 29.3.2022

COM(2022) 152 final

2022/0101(NLE)

Proposal for a

COUNCIL IMPLEMENTING DECISION

on the approval of the assessment of the recovery and resilience plan for Sweden

{SWD(2022) 102 final}

2022/0101 (NLE)

Proposal for a

COUNCIL IMPLEMENTING DECISION

on the approval of the assessment of the recovery and resilience plan for Sweden

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility 1 and in particular Article 20 thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1)The COVID-19 outbreak has had a disruptive impact on the economy of Sweden. In 2019, the gross domestic product (GDP) per capita of Sweden was 148% of the Union average. The real GDP of Sweden declined by 2,9% in 2020 and increased by 1,8 cumulatively in 2020 and 2021. Long-standing aspects with an impact on medium-term economic performance include high labour force participation, a strong and export-oriented manufacturing sector, a strong fiscal position and highly developed social safety net but also persistent imbalances stemming from the housing market and high household debt. While the productivity level in the Swedish economy is among the highest in the EU, productivity growth has been sluggish and labour market mismatches persist. Ensuring a sufficient pace of innovation, an adequate supply of skilled labour in times of profound demographic and technological changes, as well as a progressive unwinding of macroeconomic imbalances, remain key to fostering sustainable, balanced and inclusive growth in Sweden. 

(2)On 9 July 2019 and on 20 July 2020, the Council addressed recommendations to Sweden in the context of the European Semester. In particular, the Council recommended Sweden to focus investment on the green and digital transitions, as well as on education and skills and research and innovation, taking into account regional disparities. With a view to the functioning of the housing market, the Council recommended Sweden to address risks related to high household debt, to stimulate investment in residential construction where shortages are most pressing, and to improve the efficiency of the housing market. The Council also recommended improving the effectiveness and enforcement of the anti-money-laundering framework. Sweden was invited to take all necessary measures, in line with the general escape clause of the Stability and Growth Pact, to effectively address the COVID-19 pandemic, sustain the economy and support the ensuing recovery. When economic conditions allow, Sweden should pursue fiscal policies aimed at achieving prudent medium-term fiscal positions and ensuring debt sustainability, while enhancing investment. Finally, Sweden was advised to ensure the resilience of the health system. Having assessed progress in the implementation of these country-specific recommendations at the time of submission of the recovery and resilience plan (‘RRP’), the Commission finds that the recommendation on 5G deployment has been fully implemented. Substantial progress has been achieved on sustainable transport as well as on taking all necessary measures to effectively address the pandemic, sustain the economy and support the ensuing recovery. 

(3)On 2 June 2021, the Commission published an in-depth review under Article 5 of Regulation (EU) No 1176/2011 of the European Parliament and of the Council 2 for Sweden. The Commission’s analysis led it to conclude that Sweden is experiencing macroeconomic imbalances, in particular with regard to risks of overvalued house price levels coupled with a continued rise in household debt.

(4)On 28 May 2021, Sweden submitted its national RRP to the Commission, in accordance with Article 18(1) of Regulation (EU) 2021/241. That submission followed a consultation process, conducted in accordance with the national legal framework, involving local and regional authorities, social partners, civil society organisations, youth organisations and other relevant stakeholders. National ownership of the RRPs underpins their successful implementation and lasting impact at national level and credibility at European level. Pursuant to Article 19 of Regulation (EU) 2021/241, the Commission has assessed the relevance, effectiveness, efficiency and coherence of the RRP, in accordance with the assessment guidelines set out in Annex V to that Regulation.

(5)The RRPs should pursue the general objectives of the Recovery and Resilience Facility established by Regulation (EU) 2021/241 (the 'Facility') and of the European Union Recovery Instrument set up by Council Regulation (EU) 2020/2094 in order to support the recovery in the aftermath of the COVID-19 crisis. They should promote the Union's economic, social and territorial cohesion by contributing to the six pillars referred to in Article 3 of Regulation (EU) 2021/241.

(6)The implementation of the Member States’ RRPs will constitute a coordinated effort involving reforms and investments across the Union. Through coordinated and simultaneous implementation and the implementation of cross-border and multi-country projects, such reforms and investments will mutually reinforce each other and generate positive spillovers across the Union. Therefore, about one third of the impact of the Facility on Member States' growth and job creation will come from spillovers from other Member States.

Balanced response contributing to the six pillars

(7)In accordance with Article 19(3), point (a), of and Annex V, criterion 2.1, to Regulation (EU) 2021/241, the RRP represents to a large extent (Rating A) a comprehensive and adequately balanced response to the economic and social situation, thereby contributing appropriately to all of the six pillars referred to in Article 3 of that Regulation, taking into account the specific challenges faced by and the financial allocation for the Member State concerned.

(8)The RRP includes measures that contribute to all the six pillars, with a number of components addressing multiple pillars simultaneously. Such an approach helps to ensure that each pillar is comprehensively addressed in a coherent manner. Measures to decarbonise the industry and transport and to support local and regional projects on greenhouse gas (GHG) emission reductions are expected to promote the green transition. This is further supported through public support schemes to increase the energy efficiency of buildings, including through the use of smart energy systems. The RRP is expected to contribute comprehensively to the digital pillar, with measures to further improve high-speed connectivity, foster digital skills through education and training, and enhance e-government and digital public services.

(9)The support to the development and application of new technologies in the green domain is expected to help the Swedish economy grow in a smart and sustainable way. Support for re- and upskilling is expected to contribute to inclusive growth for all. In addition, measures aimed at tackling the demographic challenge, namely the adjustments of the age limits in pension and social security and tax systems, are expected to help ensure the sustainability and resilience of the Swedish economic and social model. With respect to social and territorial cohesion, the support of broadband roll-out in rural areas is expected to help ensure that all citizens have access to high-speed connectivity and thus foster territorial cohesion, while social cohesion is expected to be fostered through measures aiming at education and training as well as through measures to increase housing supply.

(10)The resilience of the Swedish health system should be improved through targeted measures to increase the supply of properly trained staff, while the resilience of the Swedish financial system should be improved by enhancing the effectiveness of the Financial Supervisory Authority. The RRP is expected to contribute to social resilience by fostering the transition prospects on the labour market. Measures to digitalise the public administration, coupled with reforms to combat money laundering and the financing of terrorism, are expected to benefit institutional resilience. The Swedish RRP is expected to contribute to policies for the next generation with measures on Swedish language and vocational training, by providing additional resources to universities, and through a reform of the employment protection system that should improve job prospects for the younger generation.

Addressing all or a significant subset of challenges identified in country-specific recommendations

(11)In accordance with Article 19(3), point (b), of and Annex V, criterion 2.2, to Regulation (EU) 2021/241, the RRP is expected to contribute to effectively addressing all or a significant subset of challenges (Rating A) identified in the relevant country-specific recommendations addressed to Sweden, including fiscal aspects thereof and recommendations made pursuant to Article 6 of Regulation (EU) No 1176/2011, addressed to the Member State concerned or challenges identified in other relevant documents officially adopted by the Commission in the context of the European Semester.

(12)The RRP includes an extensive set of mutually reinforcing reforms and investments that contribute to effectively addressing all or a significant subset of the economic and social challenges outlined in the country-specific recommendations addressed to Sweden by the Council in the European Semester in 2019 and in 2020, notably in the areas of healthcare’s resilience, climate and digital transition, education and skills development, research and innovation, anti-money laundering and improving supply side conditions and mobility in the housing market.

(13)The RRP includes measures to increase the accessibility and capacity of the health care system. The strengthening of the health care’s resilience is embedded in a broader plan to upgrade the health care system. Swedish health care is expected to benefit from the RRP through training of elderly care providers, the augmented number of study places in Vocational Education and Training (Yrkesvux) with a focus on health and social care and from introducing a protected title for assistant nurses, making this profession more attractive for potential employees. 

(14)The RRP has a strong focus on the green and digital transitions, the low carbon and energy transitions and sustainable infrastructure. The green transition is supported by broad subsidy schemes aimed at speeding up the decarbonisation of industry and transport via the promotion of investment in the development and application of innovative technologies for fossil-free solutions. The digital transition is in particular supported by dedicated investments to further improve high-speed connectivity, and measures supporting the digitalisation of the public administration. 

(15)The RRP contains several targeted reforms and investments to enhance education and skills developments in particular through both increasing the number of training opportunities, including for staff in elderly care, and study places in vocational training and in higher education, focussing on individuals with particular difficulties on the labour market. Coupled with the measure modernising employment protection legislation, this is expected to provide further incentives to scale up human capital and address the changing skills’ needs, especially in the context of the digital and green transitions.

(16)The RRP is expected to reduce the risk of money laundering in the financial system through two measures that strengthen effective supervision and enforcement of the anti-money laundering framework. It also is expected to improve the supply of rental housing and supply conditions in the housing market.

(17)The recommendations related to the immediate fiscal policy response to the pandemic can be considered to fall outside the scope of Sweden’s RRP, notwithstanding the fact that Sweden has generally responded adequately and sufficiently to the immediate need to support the economy through fiscal means in 2020 and 2021, in line with the general escape clause of the Stability and Growth Pact. By addressing the aforementioned challenges, the RRP is expected to also contribute to a limited extent to correcting the imbalances, as identified in the recommendations made pursuant to Article 6 of Regulation (EU) No 1176/2011 in 2019 and 2020 that Sweden is experiencing, in particular with regard to risks of overvalued house price levels coupled with a continued rise in household debt. 

Contribution to growth potential, job creation and economic, social and institutional resilience

(18)In accordance with Article 19(3), point (c), of and Annex V, criterion 2.3, to Regulation (EU) 2021/241, the RRP is expected to have a high impact (Rating A) on strengthening the growth potential, job creation, and economic, social and institutional resilience of Sweden, contributing to the implementation of the European Pillar of Social Rights, including through the promotion of policies for children and youth, and on mitigating the economic and social impact of the COVID-19 crisis, thereby enhancing the economic, social and territorial cohesion and convergence within the Union.

(19)Simulations by the Commission services show that the RRP, together with the rest of measures of the European Union Recovery Instrument, has the potential to increase the GDP of Sweden by 0,2% to 0,3% by 2026, not including the possible positive impact of structural reforms. The RRP is also expected to contribute to employment, notably in 2021-2022. The most significant persistent positive effects on growth, productivity and fiscal sustainability over the medium to long run are expected to stem from reforms of social security and pensions and changes in labour market legislation.

(20)The RRP puts forward a package of investments and reforms in education, digitalisation, and healthcare with a view to addressing challenges in these areas, thus contributing in several ways to equal opportunities and better access to the labour market, in line with the European Pillar of Social Rights. The scaling up of the offer of vocational education as well as more education places all over Sweden has the potential of providing a boost to employment and productivity, while fostering social cohesion. In addition, the increased supply and quality of the long-term care services should positively impact the lives of the elderly, while the special supportive measures targeting students and low-income families should improve the standing of disadvantaged groups in the housing market.

(21)Measures to foster the green and digital transitions are expected to make the Swedish economy more innovative and sustainable. In particular, support to broadband expansion is expected to give a further boost to the digital transition of work that should reduce vulnerabilities to supply-chain disruptions. The measures to improve matching on the labour market and to close the skills gaps should help maintain Sweden’s strong competitiveness and facilitate adjustments in the event of adverse economic circumstances. In addition, the RRP’s emphasis on environmentally sustainable initiatives is deemed to reduce exposure to unsustainable economic activities at risk of obsolescence. In all, the RRP promotes an industry structure based on agile and innovative economic activities, conducive to resilience.

Do no significant harm

(22)In accordance with Article 19(3), point (d), of and Annex V, criterion 2.4, to Regulation (EU) 2021/241, the RRP is expected to ensure that no measure (Rating A) for the implementation of reforms and investments projects included in the RRP does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852 of the European Parliament and of the Council 3  (the principle of 'do no significant harm').

(23)In line with the notice 'Technical guidance on the application of "do no significant harm" under the Recovery and Resilience Facility Regulation' adopted by the European Commission 4 , Sweden has provided justification that all measures included in its RRP do no significant harm to any environmental objective. Particular attention has been paid to measures whose impact on environmental objectives warrants close scrutiny. Sweden has provided substantial evidence and foresees the implementation of mitigating measures to avoid significant harm, which should be ensured through relevant milestones. This concerns in particular R&D&I investment schemes and the broad support schemes under the ‘Industry Leap’ and the ‘Climate leap’ initiatives to reduce GHG emissions, which may include installations covered under the EU Emissions Trading System (ETS). 

Contribution to the green transition including biodiversity

(24)In accordance with Article 19(3), point (e), of and Annex V, criterion 2.5, to Regulation (EU) 2021/241, the RRP contains measures that contribute to a large extent (Rating A) to the green transition, including biodiversity, or to addressing the challenges resulting therefrom. The measures supporting climate objectives account for an amount which represents 44,4% of the RRP's total allocation calculated in accordance with the methodology set out in Annex VI to that Regulation. In accordance with Article 17 of that Regulation, the RRP is consistent with the information included in the National Energy and Climate Plan 2021-2030.

(25)Reforms and investments are expected to make a significant contribution to the decarbonisation and energy transition objectives as set out in Sweden’s National Energy and Climate Plan, thereby contributing to the Union’s 2030 climate target. A number of ambitious measures, grouped together in a dedicated “green” component of the RRP, support the climate objectives, with some measures also supporting other environmental objectives, including the preservation of biodiversity. The implementation of the measures is expected to have a lasting impact, notably by contributing to the green transition, the enhancement of biodiversity, and environmental protection.

(26)The RRP contains investments in research and development to decarbonize emission-intensive industrial sectors as well as investments in local and regional climate projects aiming to reduce GHG emissions, including electric car charging infrastructures and sustainable biofuel production. The RRP also aims to reduce GHG emissions through investments to improve the energy performance of multi-dwelling buildings and the upgrade of rail infrastructure, whilst investments in the protection of valuable nature areas, notably forests, directly support the preservation of biodiversity and natural habitats. Investments are complemented by a package of ambitious reforms to support the green transition, including an increase of the energy tax, an adjustment of the car benefit tax calculation to better reflect cars’ carbon footprint and increases in the renewables shares in fuels used by the transport sector.

(27)The measures contained in the RRP contribute to the achievement of the Union’s 2050 climate target as well as Sweden’s target of achieving carbon neutrality by 2045.

Contribution to the digital transition

(28)In accordance with Article 19(3), point (f), of and Annex V, criterion 2.6, to Regulation (EU) 2021/241, the RRP contains measures that contribute to (Rating A) to the digital transition or to addressing the challenges resulting from it. The measures supporting digital objectives account for an amount which represents 20,5% of the RRP’s total allocation calculated in accordance with the methodology set out in Annex VII to that Regulation. 

(29)The measures in the RRP contribute to addressing Sweden’s challenges related to the digital transition. In particular, while Sweden’s digital connectivity is overall well-advanced, there are connectivity gaps in sparsely populated areas. The support for broadband roll-out should help improve access to high-speed connections in those areas. To address scarcity of experts in the Information and Communication Technology sector, despite the overall high level of digital skills among the Swedish population, the RRP contains investment measures to increase the number of study places in higher vocational education in relevant fields. In addition, the RRP contains investments to scale-up the education at universities and other higher education institutions, with a substantive share going to programmes that increase digital skills.

(30)The measures in the RRP are expected to contribute to the digital transition in Sweden by supporting the digitalisation of the public administration. The RRP is expected to foster synergies between tackling the green and digital transitions by supporting the application of smart energy systems to increase the energy efficiency of buildings. 

Lasting impact

(31)In accordance with Article 19(3), point (g), of and Annex V, criterion 2.7, to Regulation (EU) 2021/241, the RRP is expected to have a lasting impact on Sweden to a large extent (Rating A).

(32)The implementation of the RRP’s measures is expected to bring about structural change in the economy by enhancing its innovation capacity, environmental sustainability, digital skills and social cohesion. It raises the share of environmental taxes, which contributes to the achievement of Sweden’s climate goals and should accelerate the green transformation of the economy. This is further accentuated through the promotion of innovative technologies for fossil-free solutions in energy-intensive industries.

(33)The RRP supports social and territorial cohesion and convergence, which is expected to have a positive effect also in the long term. The broadband measure is tilted towards regions without a full broadband coverage thereby promoting regional cohesion in relation to less densely populated areas across the country. This should enable all to take part in the upward social and economic mobility driven by digitalisation. The investments in education, largely targeting vocational education and education for individuals with particular difficulties on the labour market as well as programmes to improve knowledge of the Swedish language among all residents, is expected to have a long-term positive impact on social cohesion and integration. Measures aimed at boosting innovation and countering adverse impacts of demographic trends support productivity gains and the sustainability of public finances. They help improve the capacity to support future growth-enhancing investments.

(34)The lasting impact of the RRP can also be enhanced through synergies between the RRP and other programmes, including those financed by the cohesion policy funds, in particular by addressing territorial challenges and promoting a balanced development. Accompanying structural reforms to enhance growth potential shore up the innovate base of the Swedish economy and address macroeconomic imbalances is expected to further help secure a balanced and sustainable growth path beyond the horizon covered by the RRP.

Monitoring and implementation

(35)In accordance with Article 19(3), point (h), of and Annex V, criterion 2.8, to Regulation (EU) 2021/241, the arrangements proposed in the RRP are adequate (Rating A) to ensure effective monitoring and implementation of the RRP, including the envisaged timetable, milestones and targets, and the related indicators.

(36)The Ministry of Finance of Sweden is responsible for the overall implementation of the Swedish RRP, whilst the Swedish National Financial Authority (ESV) is responsible for monitoring the achievement of milestones and targets. Those are sufficiently clear and realistic to ensure that their completion will be traced and verified and are based on relevant, acceptable and robust indicators. The verification mechanisms, data collection and responsibilities described by the Swedish authorities are expected to be sufficiently robust to justify in an adequate manner the disbursement requests. Milestones and targets are also relevant for measures already completed which are eligible under Article 17(2) of Regulation (EU) 2021/241. The satisfactory fulfilment of these milestones and targets over time is required to justify a disbursement request.

(37)Member States should ensure that financial support under the Facility is communicated and acknowledged in line with Article 34 of Regulation (EU) 2021/241. Technical support may be requested under the Technical Support Instrument established by Regulation (EU) 2021/240 of the European Parliament and of the Council 5  to assist Member States in the implementation of their RRPs.

Costing

(38)In accordance with Article 19(3), point (i), of and Annex V, criterion 2.9, to Regulation (EU) 2021/241, the justification provided in the RRP on the amount of the estimated total costs of the RRP is to a medium extent (Rating B) reasonable and plausible, is in line with the principle of cost efficiency and is commensurate to the expected national economic and social impact.

(39)Sweden has generally provided detailed breakdowns of individual cost estimates for investments and reforms with an associated cost included in the RRP. The justification of costs is primarily based on comparisons with past or parallel projects that are similar in nature to the proposed measures. For measures having costs that may not be determined in detail ex-ante, such as demand-driven schemes with calls for proposals, Sweden has provided evidence to demonstrate that the overall amount to be spent is not disproportionate with the funding needs of the sectors targeted. The cost assessment shows that most of the costs in the RRP are reasonable and plausible. Nevertheless, the fact that for some measures the link between the justification and the cost itself is not entirely clear precludes a rating of ‘A’ for this criterion. Finally, the estimated total cost of the RRP is in line with the principle of cost-efficiency and is commensurate to the expected national economic and social impact.

Protection of the financial interests of the Union

(40)In accordance with Article 19(3), point (j), of and Annex V, criterion 2.10, to Regulation (EU) 2021/241, the arrangements proposed in the RRP and the additional measures contained in this Decision are adequate (Rating A) to prevent, detect and correct corruption, fraud and conflicts of interests when using the funds provided under that Regulation, and the arrangements are expected to effectively avoid double funding under that Regulation and other Union programmes. This is without prejudice to the application of other instruments and tools to promote and enforce compliance with Union law, including for preventing, detecting and correcting corruption, fraud and conflicts of interest, and for protecting the Union budget in line with Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council 6 .

(41)The RRP is accompanied by implementing measures, including comprehensive safeguarding measures with respect to control and audit, subject to the full implementation of the dedicated additional milestones in this area. The Ministry of Finance bears the overall responsibility for the implementation of the RRP and is be accountable on behalf of all public sector entities on the operational and administrative aspects of the RRP. The Ministry of Finance is also responsible for handling and ensuring a central reply to requests for information and access to data on final recipients. The collection and storage of such data is ensured by the authorities responsible for implementing the RRP. To ensure coherence in the implementation of the RRP, the overarching audit authority is the Swedish National Financial Management Authority (ESV), which assists the Ministry of Finance with its overall coordination duties. The National Audit Office (NAO) also contributes through recurrent audits on efficiency, effectiveness and reliability of accounts, acting independently from the government in executing its mandate given by Parliament.

(42)The internal control system described in Sweden’s RRP presents a robust process and structure, where the roles and responsibilities of implementing entities are clearly defined and the relevant control functions are appropriately segregated. Milestones should be established requiring the entry into force of legislative amendments establishing the legal mandates for the bodies involved in the coordination, monitoring, control and audit of the implementation of the Swedish RRP, setting out in particular the mandates to all government entities involved in the operational aspects of the RRP implementation, the designation of the audit authority and the responsible body for elaborating an audit strategy on the RRP implementation. Those milestones should ensure that the system includes, as a minimum, the following functionalities: (a) the collection of data and the monitoring of the achievement of milestones and targets; and (b) the collection and storing of and the ensuring of access to the data required by Article 22(2), point (d)(i) to (iii), of Regulation (EU) 2021/241.

Coherence of the RRP

(43)In accordance with Article 19(3), point (k), of and Annex V, criterion 2.11, to Regulation (EU) 2021/241, the RRP includes to a high extent (Rating A) measures for the implementation of reforms and public investment projects that represent coherent actions. 

(44)The RRP is characterised by a consistent vision to use the recovery as a leverage to speed up the green and digital transitions, and to foster social cohesion, displaying coherence between components and individual measures. The reforms and investments in each component are consistent and mutually reinforcing, and synergies and complementarities exist between components. For instance, the reform to foster vocational training in health- and social care in combination with Swedish language training is expected to address the challenges related to disadvantaged labour market groups. At the same time this reform should also help ensure high quality care services, which complements the dedicated elderly care initiative and the measure to regulate the profession of nurse. 

Equality

(45)The RRP contains measures that are to a different degree expected to help Sweden address its challenges in the areas of gender equality and equal opportunities for all, in particular education and training, targeted, among others, at young people, people with a migrant background and those with disabilities. The RRP reflects the Government's overall gender equality policy goal, for women and men to have the same possibility to shape society and their own lives. The RRP is expected to be an important tool to promote gender equality and gender budgeting. 

Security self-assessment

(46)A security self-assessment has not been provided as it has not been considered appropriate by Sweden, in accordance with Article 18(4), point (g), of Regulation (EU) 2021/241.

Consultation process

(47)In the preparatory stages of the Swedish RRP, there were numerous consultations with social partners and business organisations, including within the framework of the national co-ordination on the European Semester at services’ level. A meeting was held with representatives of civil society. Relevant stakeholders, such as interest groups, businesses and representatives of municipalities and regions submitted proposals in the process. Reforms or measures in the RRP that involve a change in existing legislation have been or are expected to be preceded, in particular, by the submission of proposals to relevant authorities, municipalities, associations and individuals.

(48)Where applicable, the stakeholders concerned should continue to be involved in the implementation of the respective measures, to ensure that the authorities have ongoing contact with citizens, companies, municipalities and regions. To ensure ownership by the relevant actors, it is crucial to involve all local authorities and stakeholders concerned, including social partners, throughout the implementation of the investments and reforms included in the RRP. 

Positive assessment

(49)Following the positive assessment of the Commission concerning the Swedish RRP with the finding that the RRP satisfactorily complies with the criteria for assessment set out in Regulation (EU) 2021/241, in accordance with Article 20(2) of and Annex V to that Regulation, this Decision should set out the reforms and investment projects necessary for the implementation of the RRP, the relevant milestones, targets and indicators, and the amount made available from the Union for the implementation of the RRP in the form of non-repayable financial support.

Financial contribution

(50)The estimated total cost of the RRP of Sweden is SEK 33 304 030 000, which equals EUR 3 289 286 914 on the basis of the EUR SEK ECB reference rate of 28 May 2021. As the RRP satisfactorily complies with the criteria for assessment set out in Regulation (EU) 2021/241 and, furthermore, as the amount of the estimated total costs of the RRP is higher than the maximum financial contribution available for Sweden, the financial contribution allocated for Sweden’s RRP should be equal to the total amount of the financial contribution available for Sweden.

(51)In accordance with Article 11(2) of Regulation (EU) 2021/241, the calculation of the maximum financial contribution for Sweden is to be updated by 30 June 2022. As such, in accordance with Article 23(1) of that Regulation, an amount for Sweden not exceeding the maximum financial contribution referred to in Article 11(1), point (a), of that Regulation should be made available now for a legal commitment by 31 December 2022. Where necessary following the update of the maximum financial contribution, the Council, on a proposal from the Commission, should amend this Decision to include the updated maximum financial contribution, calculated in accordance with Article 11(2) of that Regulation, without undue delay.

(52)The support to be provided is to be financed from the borrowing by the Commission on behalf of the Union on the basis of Article 5 of Council Decision (EU, Euratom) 2020/2053 7 . The support should be paid in instalments once Sweden has satisfactorily fulfilled the relevant milestones and targets identified in relation to the implementation of the RRP.

(53)This Decision should be without prejudice to the outcome of any procedures relating to the award of Union funds under any Union programme other than the Facility or to procedures relating to distortions of the operation of the internal market that may be undertaken, in particular under Articles 107 and 108 of the Treaty. It does not override the requirement for Member States to notify instances of potential State aid to the Commission under Article 108 of the Treaty, 

HAS ADOPTED THIS DECISION:

Article 1
Approval of the assessment of the RRP 

The assessment of the RRP of Sweden on the basis of the criteria provided for in Article 19(3) of Regulation (EU) 2021/241 is approved. The reforms and investment projects under the RRP, the arrangements and timetable for the monitoring and implementation of the RRP, including the relevant milestones and targets, the relevant indicators relating to the fulfilment of the envisaged milestones and targets, and the arrangements for providing full access by the Commission to the underlying relevant data are set out in the Annex to this Decision.

Article 2
Financial contribution

1.The Union shall make available to Sweden a financial contribution in the form of non-repayable support amounting to EUR 3 288 516 389. 8 An amount of EUR 2 910 807 980 shall be available to be legally committed by 31 December 2022. If the update provided for in Article 11(2) of Regulation (EU) 2021/241 results in an updated maximum financial contribution for Sweden that is equal to or more than EUR 3 288 516 389, a further amount of EUR 377 708 409 shall be available to be legally committed from 1 January 2023 until 31 December 2023. If the update provided for in Article 11(2) of Regulation (EU) 2021/241 results in an updated maximum financial contribution for Sweden that is less than EUR 3 288 516 389, the difference between the updated maximum financial contribution and the amount of EUR 2 910 807 980 shall be available to be legally committed in accordance with the procedure set out in Article 20(8) of Regulation (EU) 2021/241 from 1 January 2023 until 31 December 2023.

2.The Union financial contribution shall be made available by the Commission to Sweden in instalments in accordance with the Annex. The instalments may be disbursed by the Commission in one or several tranches. The size of the tranches shall be subject to the availability of funding.

3.The release of instalments in accordance with the financing agreement shall be conditional on available funding and a decision by the Commission, taken in accordance with Article 24 of Regulation (EU) 2021/241, that Sweden has satisfactorily fulfilled the relevant milestones and targets identified in relation to the implementation of the RRP. In order to be eligible for payment, Sweden shall complete the milestones and targets no later than 31 August 2026, subject to the entry into force of the legal commitments referred to in paragraph 1.

Article 3
Addressee

This Decision is addressed to the Kingdom of Sweden.

Done at Brussels,

(1)    OJ L 57, 18.2.2021, p. 17.

(2)    Regulation (EU) No 1176/2011 of the European Parliament and of the Council of 16 November 2011 on the prevention and correction of macroeconomic imbalances (OJ L 306, 23.11.2011, p. 25).

(3)    Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13).

(4)    OJ C 58, 18.2.2021, p. 1.

(5)    Regulation (EU) 2021/240 of the European Parliament and of the Council of 10 February 2021 establishing a Technical Support Instrument (OJ L 57, 18.2.2021, p. 1).

(6)    Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council of 16 December 2020 on a general regime of conditionality for the protection of the Union budget (OJ L 433 I, 22.12.2020, p. 1).

(7)    OJ L 424, 15.12.2020, p. 1.

(8)    This amount corresponds to the financial allocation after deduction of Sweden’s proportional share of the expenses of Article 6(2) of Regulation (EU) 2021/241, calculated in accordance with the methodology of Article 11 of that Regulation.

EUROPEAN COMMISSION

Brussels, 29.3.2022

COM(2022) 152 final

ANNEX

to the

Proposal for a Council Implementing Decision

on the approval of the assessment of the recovery and resilience plan for Sweden

{SWD(2022) 102 final}

ANNEX

SECTION 1: REFORMS AND INVESTMENTS UNDER THE RECOVERY AND RESILIENCE PLAN

1.Description of Reforms and Investments

A. COMPONENT 1: Green recovery

This component of the Swedish recovery and resilience plan aims at tackling challenges to Sweden’s objective of achieving carbon neutrality by 2045. The measures in the component are expected to increase local and regional measures to reduce emissions from road transport and other sources of carbon dioxide and other gases affecting the climate; increase investments in the industry’s transition towards zero net emissions of greenhouse gases; increase investments in energy efficiency in housing; and preserve biodiversity via the protection of valuable nature.

Firstly, the component aims at speeding up the transition of the transport sector to become fossil-free by increasing investments in sustainable transport solutions, such as railway and electric and biogas charging stations, complemented by a package of reforms that aim at discouraging the use of polluting cars. The reforms are part of a green tax reform to shift taxation from labour to the environment.

Secondly, the component aims at reducing the quantity of process-related emissions, which are relatively expensive to reduce since the technology is not available on the market today. More research, innovation, demonstration and implementation on a larger scale is needed. The component addresses this challenge by increasing the resources available for the Industry Leap, an investment scheme aiming to decarbonise the industry.

Thirdly, the component aims at improving the energy efficiency of the housing sector in Sweden. The sector emits 11 million tonnes of carbon dioxide per year, mainly from electricity and space heating in homes.

Lastly, the component also aims at contributing to biodiversity by establishing formally protected areas in the form of nature reserves in valuable natural habitats.

The component is expected to contribute to country-specific recommendations addressed to Sweden, in particular “maintaining investment in sustainable transport to upgrade the different transport modes, in particular railways” (country-specific recommendation 2, 2019) and “focus investment on the green […] transition, in particular on clean and efficient production and use of energy, high-tech and innovative sectors, […] and sustainable transport” (country-specific recommendation 2, 2020) and “research and innovation” (country-specific recommendation 2, 2019)

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the ‘do no significant harm’ Technical Guidance (2021/C58/01).

A.1.    Description of the reforms and investments for non-repayable financial support

Investment 1: Local and regional climate investments

The measure is an investment scheme called the Climate Leap, which shall finance local and regional activities to reduce emissions of carbon dioxide and other gases affecting the climate. The beneficiaries are both private and public entities, notably including municipalities, organisations and enterprises, excluding individuals. The expected effects are also the diffusion of new technologies, market uptake, better health and employment, as well as a positive impact on other environmental objectives.

The measure shall financially reinforce an existing scheme. Supported actions shall include concrete climate action in areas such as transport, industry, agriculture and energy. These range from biogas and infrastructure such as cycle paths or recharging points for electric vehicles to the replacement of oil by district heating.

There is no pre-determined envelope between the different types of projects. Instead, the Climate Leap shall provide financing to the investment with the largest possible GHG emission reduction per SEK invested. The selection of projects shall respect various criteria. For projects on the conversion to bioenergy for heating in industry and agriculture, the objective of the measure shall be to reduce GHG emissions by at least 80% through the use of biomass based on the calculation method for greenhouse gas reductions and the relative fossil equivalent set out in Annex VI to Directive (EU) 2018/2001. For projects on the production of biogas, the objective of the measure shall be to reduce greenhouse gas emissions on the installation by at least 65% through the use of biomass to this end based on the calculation method for greenhouse gas reductions and the fossil equivalent set out in Annex V to the Directive (EU) 2018/2001. For projects on transport (service stations), the objective of the measure shall be in line with Directive (EU) 2018/2001. For projects on waste (plastic recycling), the objective of the measure shall be to convert at least 50%, measured by weight, of the processed and separately collected harmless waste into secondary raw materials. For projects on energy efficiency, the aim of the measure shall be to achieve, on average, a minimum 30% reduction in direct and indirect greenhouse gas emissions compared to pre-calculated emissions. For projects on charging stations for electric cars and infrastructure, the objective of the measure shall be in line with Directive (EU) 2018/2001.

It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the ‘do no significant harm’ Technical Guidance (2021/C58/01). In particular, biofuels shall meet the sustainability and greenhouse gas emission savings criteria set out in Articles 29, 30 and 31 of the Renewable Energy Directive 2018/2001/EU (REDII) and the rules on food and feed based biofuels set out in Article 26 of that Directive, and the related implementing and delegated acts adopted in accordance with that Directive. The measure shall also comply with the air quality standards set by Directive 2008/50/EC. Activities under the Emissions Trading System shall not be eligible for funding, with the exception of waste heat that is used for district heating. Any such funding for waste heat shall have projected greenhouse gas emissions below the heat benchmark established in Commission Implementing Regulation (EU) 2021/447 1 . As a whole, the following activities are further excluded from financing: (i) activities and assets related to fossil fuels, including downstream use 2 ; (ii) activities and assets related to waste landfills, incinerators 3 and mechanical biological treatment plants 4 ; and (iii) activities and assets where the long-term disposal of waste may cause harm to the environment. 

The implementation of the investment shall be completed by 31 December 2025.

Investment 2: Climate investments in the industrial sector (Industry Leap)

The measure is an investment scheme called the Industry Leap. The aim of this investment shall be to provide financial support in the form of grants for investments, research, feasibility studies, pilot projects, and demonstration projects to help the industry to transition towards zero net emissions of greenhouse gases. It shall finance projects that develop, demonstrate and implement new technology with zero, low or negative emissions of greenhouse gases in industries with high process emissions.

The measure shall reinforce an existing scheme. It shall extend the support to industrial projects that make a significant contribution to achieving climate objectives, such as biofuel production, recycled plastic refineries, hydrogen production, recycling facilities and battery production. Support from the scheme may be used for expenditure related to measures contributing to permanent negative greenhouse gas emissions, including research, development, testing, demonstration and investment. Of the total budget envelope, at least 85 percent of the funds shall be dedicated to research-and-development projects focusing on the low-carbon economy and no more than 15 percent shall be dedicated to research-and-development projects focussing on the circular economy.

Support shall be given to actions that fulfil at least one of the following criteria: (1) contribute to the reduction of industrial greenhouse gas emissions directly or indirectly linked to industrial processes, (2) contribute to negative emissions through the capture, transport and geological storage of greenhouse gases of biogenic origin or those that have been taken out of the atmosphere, or (3) through the application of new technologies or other innovative solutions in industry, contribute significantly to the achievement of the Swedish national environmental objective ‘Reduced Climate Impact’.

It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the ‘do no significant harm’ Technical Guidance (2021/C58/01). In particular, biofuels shall meet the sustainability and greenhouse gas emission savings criteria set out in Articles 29, 30 and 31 of the Renewable Energy Directive 2018/2001/EU (REDII) and the rules on food and feed based biofuels set out in Article 26 of that Directive, and the related implementing and delegated acts adopted in accordance with that Directive. The measure shall also comply with the air quality standards set by Directive 2008/50/EC. Activities under the Emissions Trading System shall have projected greenhouse gas emissions that are lower than the relevant benchmarks established for free allocation 5 . As a whole, the following activities are further excluded from financing: (i) activities and assets related to fossil fuels, including downstream use 6 ; (ii) activities and assets related to waste landfills, incinerators 7 and mechanical biological treatment plants 8 ; and (iii) activities and assets where the long-term disposal of waste may cause harm to the environment.

The following R&D&I actions under this investment shall be considered compliant with the ‘Do no significant harm’ Technical Guidance (2021/C58/01): R&D&I actions under this investment devoted to substantially increasing the environmental sustainability of companies (such as decarbonisation, reduction of pollution and the circular economy) if the primary focus of the R&D&I actions under this investment is on developing or adapting alternatives with the lowest possible environmental impacts in the sector.

The investment shall be implemented by 31 December 2025.

Investment 3: Energy efficiency in multi-dwelling buildings

This public support scheme, which shall be established by a proposed regulation for energy efficiency in multi-dwelling buildings, aims to incentivise property owners to renovate multi-dwelling buildings, which is usually not profitable. The support scheme shall give support to investments that achieve at least a 20% reduction in the primary energy demand at the level of the building. It shall also aim at creating incentives for property owners to include smart energy systems as part of the renovation effort.

The implementation of the investment shall be completed by 31 December 2025.

Investment 4: Strengthened railway support

This measure shall upgrade the railway in Sweden to allow more persons and enterprises to use railways as a means of transportation. The upgrades shall also improve railway capacity. The upgrade concerns the railways between Gävle-Åänge (switching rail and shunting), Västeraspby-Långsele (switching rail and shunting), rebuilding the bridge located in Vänersborg and investing in automatic level crossing (“Alex”).

The implementation of the investment shall be completed by 31 March 2026.

Investment 5: Protection of valuable nature

This measure shall aim at protecting biodiversity in areas that host high natural values, by establishing formally protected areas of nature reserves. According to the Swedish environmental code a land or water area may be declared a nature reserve by a county administrative board for the purpose of preserving biological diversity, protecting and preserving valuable natural environments or satisfying the need of areas for outdoor recreation. Any area that is needed for the purpose of protecting, restoring or establishing valuable natural environments or habitats for species that are worthy of preservation may also be designated a nature reserve. The measure shall consist of compensating private land owners for either the purchase of land area or the compensation for restrictions caused by the formal protection. The decision to establish a nature reserve shall specify the restrictions on the right to use land and water areas necessary to achieve the purpose of the reserve.

The implementation of the investment shall be completed by 31 December 2023.

Reform 1: Adjustments in the reduction obligation

This reform shall require fuel suppliers to blend in sustainable biofuels in gasoline, diesel and jet fuel. It is expected to contribute to Sweden’s climate objective to become carbon neutral by 2045, as it promotes renewable fuels for the existing stock of conventional vehicles and aircraft. The reduction obligation for jet fuel was introduced on 1 July 2021 and requires that suppliers gradually decrease emissions from jet fuel, starting from 0,8% in 2021 to 27% in 2030. From 1 August 2021 the reduction quotas have been increased for gasoline and diesel. The quotas shall gradually increase from 6% in 2021 to 28% in 2030 for gasoline and from 26% in 2021 to 66% in 2030 for diesel. Biofuels that are used to fulfil the obligation shall comply with the sustainability and greenhouse gas emission savings criteria set out in Articles 29, 30 and 31 of the Renewable Energy Directive 2018/2001/EU (REDII) and the rules on food and feed based biofuels set out in Article 26 of that Directive, and related implementing and delegated acts adopted in accordance with that Directive.

The implementation of the reform was to be completed by 30 September 2021.

Reform 2: Abolished reduction of energy tax on fuel in certain sectors

This measure shall phase out the existing reduction of the energy tax on fuels consumed for heating or the operation of stationary engines. It is expected to contribute to the climate objective of Sweden to become carbon neutral by 2045. The sectors that shall be included in this measure are manufacturing as well as professional agricultural, forestry, and aquaculture activities.

The implementation of the reform shall be completed gradually, starting with a 50% reduction of the tax advantage by 30 September 2021 and ending with a complete removal of the tax reduction by 31 March 2022.

Reform 3: Adjusted taxable benefit rates for company cars

This measure shall, by adjusting the taxable benefit rates for company cars, adjust the relative costs in order to better reflect the costs of private car ownership. In many cases the reform is expected to lead to an increase of the taxable benefit value, which increases the cost of having a company car. The reform aims to make the tax system neutral between car benefits and cash salary. Indirectly, the reform also addresses the challenge identified by the Swedish authorities, namely that the Swedish tax system rewards fossil-powered cars over other goods and services.

The implementation of the reform was to be completed by 30 September 2021.

A.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

See table below. The date of the baseline for all indicators is 1 February 2020 unless indicated differently in the description of the action. Amounts in the table do not include VAT.

B. COMPONENT 2: Education and transition

The component “Education and transition” includes reforms and investments to improve employment opportunities by increasing human capital among the unemployed, to facilitate structural transformation, in particular adaptation to an increasingly digital society, by educating and training the labour force, to increase flexibility in the labour market with a modernised employment protection law and greater transition possibilities.

The component aims to boost employment and productivity in the long term by increasing the labour force’s human capital and better matching the demand. The structural transformation, particular the digital transition, places demands on reskilling possibilities, when the labour force lacks the skills demanded by the labour market.

Persons with particular difficulties in the Swedish labour market are those born outside of the Union, people that lack upper secondary education, older unemployed people and people with a disability. Unemployment has risen during the crisis. The component intends to counteract and avoid that people exit the labour force.

With the Covid-19 crisis many job opportunities for young people or recently arrived immigrants in the service sector have disappeared. Sectors like health, education or ICT have difficulties in finding the people with the right skill sets. The skill shortage is a barrier to growth for Swedish businesses and curbs the possibility of maintaining and improving quality in the welfare system.

The component includes reforms and investments that improve transition possibilities, in general and for people who have become unemployed. The component aims to increase the number of study places, to provide more training opportunities, with a focus on vocational training and adult education. In addition, it intends to scale up the number of places at universities and other higher education institutions.

The component is expected to contribute to country-specific recommendations addressed to Sweden, in particular “focus investment-related economic policy on education and skills” (country-specific recommendation 2, 2019) and “support education and skills development” (country-specific recommendation 2, 2020).

B.1.    Description of the reforms and investments for non-repayable financial support

Investment 1: More study places in regional adult vocational education

The aim of this investment shall be for more people to obtain vocational training at upper secondary level and hence be able to get a job. The investment is expected to improve matching in the labour market and boost employment in the long term. Parts of the initiative within adult vocational education are motivated by the need to offer training to people within elderly care who participate in the Elderly Care Initiative, which is part of component 3.

The measure shall be a temporary reinforcement of the existing Knowledge Boost, which provides vocational programmes for adults at upper secondary level. It can be combined with Swedish for Immigrants or Swedish as a second language. Priority shall be given to individuals with the greatest need of education, such as unemployed or individuals with short previous education. Training courses are expected to be primarily procured from private training providers, allowing rapid scale-up and flexibility to respond to changing training demands.

The implementation of the investment shall be completed by 31 December 2023.

Reform 1: Higher compensation level for vocational training in combination with Swedish for Immigrants and Swedish as a second language

The aim of this reform shall be to create economic incentives for municipalities to offer a combination of vocational training and Swedish language training. This shall be done through amendments of the respective legal act increasing the amount of state compensation for such combined courses. This is expected to shorten the study period and enable participants to seek and find employment faster. This reform shall support Investment 1 and is expected to increase the number of study places for the target group, notably adults without upper secondary education and adequate language skills.

The implementation of the reform was to be completed by 30 September 2020.

Investment 2: More study places in higher vocational education

The aim of this investment shall be to improve education, training and transition prospects to meet the needs of the labour market during and after the crisis and to upskill the labour force, by increasing the number of places in higher vocational education. The investment is expected to address the transition needs in the labour market, where even before the crisis there has been a labour shortage within many professions, particularly in the welfare sector, data/IT and the industrial sector. 59% of the additional study places in higher Vocational Education are expected to be within the fields of data/IT or contribute to the digital transition in some other way.

The implementation of the investment shall be completed by 31 December 2023.

Investment 3: Resources to meet demands for education at universities and other higher education institutions

The investment shall focus on scaling up the education at universities and other higher education institutions to tackle the challenges in the labour market. The economic decline due to the Covid-19 pandemic has caused unemployment to rise among individuals with an upper secondary education, and many of these are now seeking higher education, with the number of applicants at record levels. A focus shall be on programmes geared towards shortage occupations and to enable re-skilling and further studies. The investment shall increase the funding of universities and other higher education institutions to enable a greater number of full-time students (study places), reinforce society, meet people’s needs for training that leads to jobs, enable transition to better equip individuals for the future labour market and improve welfare, and boost competitiveness of the Swedish business sector. The investment is expected to generate higher employment, greater productivity and underpin the supply of a well-educated labour force. On average, 27% of the additional study places are expected to increase digital skills or contribute to the digital transition in some other way.

The implementation of the investment shall be completed by 31 December 2025.

Reform 2: Employment protection act and greater transition possibilities

The reform shall aim at adapting current employment protection to enhance both flexibility and mobility on the labour market. The Swedish labour market is increasingly divided between people with professional experience and a lengthy education and people without professional experience and only a brief education, who find it more and more difficult to get into lasting employment. Greater mobility and more entry points for people in a disadvantaged position is needed. Employers need greater flexibility and predictability to be able to adapt operations and withstand competition, while employees need protection adapted to the new labour market, with a need for continuous upskilling and hence greater employability as an important security factor. The objective of the reform shall be to modernise employment protection, while maintaining the fundamental balance between the social partners.

The implementation of the reform shall be completed by 30 June 2022.

B.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

See table below. The date of the baseline for all indicators is 1 February 2020 unless indicated differently in the description of the action. Amounts in the table do not include VAT.

C. COMPONENT 3: Better conditions for addressing demographic challenges

This component contains reforms aiming at increasing the average pension age, strengthening the sustainability of public finances, improving the skills of staff working in elderly care centres, and enhancing supervision and enforcement of the financial system with respect to anti-money laundering and combating the financing of terrorism.

Sweden identified a number of challenges regarding long-term care, demography (expected to have long-term budgetary implications), as well as issues with the enforcement mechanisms for anti-money laundering/combating the financing of terrorism.

Firstly, there is a need to improve the quality of the long-term care system. A reform addressing this objective concerns regulating the professional recognition of nursing assistants, and it is complemented by upgrading the human capital for the caretakers hired by the municipalities in their centres, through the reimbursements of the costs related to their further training during paid working hours.

Secondly, the average pension age should increase at the same time as the sustainability of the public pension system should improve in the face of increasing average life expectancy and decreasing working-age population. The component addresses this challenge by including a pre-existing reform linking the retirement age to a benchmark (aligned with the average life expectancy) as well as adjusting the adjacent age limits for the social security contribution system.

Thirdly, the efforts for combating the money laundering and financing of terrorism should be stepped-up. Sweden had already imposed a number of measures, and the component adds to these with two reform proposals: (1) A public inquiry on the effectiveness of the supervisory institutional structure in the area of anti-money laundering with proposals for improvements on how to better share information between private and public institutions; (2) By passing a bill for granting access to data regarding bank accounts and safe deposit boxes to all relevant competent authorities.

The component is expected to contribute to country-specific recommendations addressed to Sweden, in particular “focus investment related to economic policy on education and skills” (country-specific recommendation 2, 2019), “ensure effective supervision and the enforcement of the anti-money laundering framework” (country-specific recommendation 2, 2019) and “improve the effectiveness of anti-money laundering supervision and effectively enforce the anti-money laundering framework” (country-specific recommendation 3, 2020), and “pursue fiscal policies aimed at achieving prudent medium-term fiscal positions and ensuring debt sustainability, while enhancing investment (…) ensure the resilience of the health system, including through adequate supplies of critical medical products, infrastructure and workforce” (country-specific recommendation 1, 2020).

C.1.    Description of the reforms and investments for non-repayable financial support

Investment 1: Elderly care initiative

This investment shall aim at improving the skills set of the staff working in elderly care centres. It shall consist of disbursements of the salary costs related to the upskilling and training of the staff (8000 participants from different groups) during their working hours. The central government shall make these disbursements to the municipalities, which are responsible for elderly care.

The implementation of the investment shall be completed by 31 December 2023.

Reform 1: Regulating the professional title of nursing assistants

This reform shall address the lack of national legal provisions with respect to the skills and/or education required for a recognised nursing assistant title. A legislative proposal shall enter into force by 30 September 2023 indicating the educational and/or the corresponding skills required from persons seeking the title of nursing assistant. A 10-year transitionary period shall be stipulated (expected to end in 2033) to enable the employees currently having the occupation to apply for and receive the certificate of recognition. The expected outcomes after the reform implementation are legal protection for the profession of nurse assistants and increased quality and safety services in healthcare settings and in the long-term care sector.

The implementation of the reform shall be completed by 30 September 2023.

Reform 2: Adjusted age limits

The objective of this reform is to increase the average pension age and improve further the sustainability of the public pension system by gradual increases in the retirement age reflected in adjustments in the social security and tax systems. Several age limits shall be progressively adjusted as of 2023, in particular, raising the minimum age for deductions of pension benefits from 62 to 63, and the minimum age for when the basic protection for the retired can be paid from 65 to 66. Subsequently, starting from 2026, the retirement age limits shall be linked to a benchmark age aligned with the average life expectancy. The age limits for social security, tax and contribution systems shall be adjusted accordingly, to allow for a greater labour supply, and higher tax income.

The implementation of the reform shall be completed by 30 June 2026.

Reform 3: Stronger measures against money laundering and terrorist financing

A public inquiry has been arranged in order to fulfil two tasks. Firstly, to provide proposals for legislative amendments for stricter and more effective anti-money laundering and combating the financing of terrorism measures. Secondly, to assess the effectiveness of the Swedish Financial Supervisory Authority in terms of resources, staffing and government control, inter alia, as well as the effectiveness of the institutional structure of the supervisory system as a whole. A proposal was presented to the government on 31 May 2021 (SOU 2021:42) and was sent to a public consultation that was closed on 16 September 2021. The results of the public inquiry shall feed into a government proposal and the relevant legislation shall be adopted and enter into force.

The implementation of the reform shall be completed by 31 December 2023.

Reform 4: A new bank account and safe deposit box system

This reform concerns giving access to data related to the identities of the bank account and safe deposit box holders to the relevant authorities (Financial Intelligence Unit, Tax Agency, Enforcement Authority, law enforcement authorities) in order to step-up the efforts on anti-money laundering and combating the financing of terrorism: Data regarding the balance and transaction history shall not be covered by this measure. Such information shall be made available on a platform managed by the Swedish Tax Authority. A legislative proposal (Prop. 2019/20:83) was to be sent to the Riksdag on 11 February and enter into force on 10 September 2020 (2020:272); the connection of roughly 150 financial institutions and competent agencies shall be carried out by the Swedish Tax Agency and is expected to be finished by 30 June 2022.

The implementation of the reform was to be completed by 30 September 2020.

Reform 5: Ensuring an effective and efficient implementation of the Recovery and Resilience Plan

The aim of this reform is to establish the relevant legal mandates or assignments to the authorities involved in the coordination, monitoring, control and audit of the implementation of the Swedish RPP in an efficient and effective manner which meets the requirements set out in the Regulation (EU) 2021/241. To ensure an adequate and functional internal control system with respect to the implementation of the RRF, the following legislative amendments shall have entered into force before the first payment request is submitted to the Commission.

1) Amendments to applicable regulations and assignments to all government entities that are involved in operational aspects of implementing the RRP in accordance with the requirements of Article 22 and 34(2) of the Regulation (EU) 2021/241;

2) Entry into force of all formal mandates to carry out associated tasks to the Swedish National Financial Management Authority (ESV) as the audit authority responsible for the overall monitoring of RRF disbursements and uses, with the right to gather information on achievement of milestones and targets i.e. data access at the implementing bodies and the right to audit including the access to data on final recipients in accordance with art. 22(2), point (d) of Regulation (EU) 2021/241. The ESV shall be the competent audit authority for centralising all relevant audit findings and recommendations as well as for requesting the necessary information to carry out these responsibilities. In addition, the government shall decide on mandates to specific authorities responsible for aspects of RRF execution to report on the respective objectives and achievements of milestones and targets to the Swedish National Financial Management Authority (ESV) and to the central coordinating capacity within the government offices (Ministry of Finance), to provide management declarations, and to allow audits by the ESV and to ensure visibility of the Union financing;

3) Entry into force of all formal mandates along with the necessary budgetary allocation to carry out associated tasks by the Swedish National Financial Management Authority (ESV) on audit.

The necessary decisions in point 1) can be specified as follows:

·The Government shall     decide on assignments to the following authorities to report on their respective milestones and targets, submit management declarations and to allow audits by the Swedish National Financial Management Authority (ESV) and to ensure the visibility of the Union financing:

1.National Board of Housing, Building and Planning,

2.Agency for Digital Government,

3.Swedish National Agency for Higher Vocational Education,

4.Swedish Environmental Protection Agency,

5.Swedish Post and Telecom Authority,

6.National Board of Health and Welfare,

7.Swedish Energy Agency,

8.Swedish National Agency for Education,

9.Swedish Transport Administration, and

10.Assignment to an authority within the education field

The Government intends to enter into agreements on amended conditions with    Chalmers University of Technology and Jönköping University.

·The following regulations and assignments shall, if necessary, be supplemented in accordance with the requirements in Articles 22(2), points (e) and (f) as well as Article 34(2) of Regulation (EU) 2021/241. Moreover, the regulations shall be supplemented in such a way as to give ESV the responsibility to follow up on payments and to request the necessary information from the recipients of state grants according to the regulations:

1.Regulation (2017:1319) [förordningen om statligt stöd till åtgärder som bidrar till industrins klimatomställning],

2.Regulation (2015:517) [förordningen om stöd till lokala klimatinvesteringar],

3.Regulation (2019:525) [förordningen om statligt stöd för installation av laddningspunkter för elfordon],

4.Coming Regulation [förordning om stöd till energieffektivisering av bostadshus (bereds för närvarande)],

5.Regulation (2020:266) [förordningen om statligt stöd för utbyggnad av bredbandsinfrastruktur],

6.Regulation (2016:881) [förordningen om statligt investeringsstöd för hyresbostäder och bostäder för studerande],

7.Regulation (2016:937) [förordningen om statsbidrag för regional yrkesinriktad vuxenutbildning],

8.Regulation (2009:130) [förordningen om yrkeshögskolan],

9.the coming assignments for 2022 and 2023 on the payment of state grants to municipalities due to the Elderly care initiative,

10.assignment/regulation for The Agency for Digital Government,

11.Assignment to an authority within the education field,

12.Assignment/regulation to The Swedish Environmental Protection Agency,

13.Assignment/regulation to The National Board of Health and Welfare, and

14.Assignment/regulation to The Swedish Transport Administration,

The implementation of the reform was to be completed by 31 December 2021.

C.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

See table below. The date of the baseline for all indicators is 1 February 2020 unless indicated differently in the description of the action. Amounts in the table do not include VAT.

D. COMPONENT 4: Broadband expansion and digitalisation of public administration

This component of the Swedish recovery and resilience plan contains investments that aim to expand Sweden’s digital infrastructure and to make its public administration more efficient and fit-for-purpose by taking advantage of the opportunity of digitalisation.

Sweden’s broadband infrastructure is overall well advanced. However, to reach the government’s objective that all of Sweden should have access to high-speed broadband by 2025, there is a need to increase the availability particularly in sparsely populated areas, where market mechanisms alone do not ensure the provision of such services. Increasing the speed and availability of broadband connections shall support households and companies to reap the benefits of a rapid digital transition.

This component shall also include investments in an administration-wide digital infrastructure. Currently, the lack of such infrastructure is reflected in a heterogeneous set of different frameworks and standards, which hampers interoperability and thus increases risks to efficiency and security. The investments included in this component aim to address those issues by establishing a shared digital infrastructure.

The component is expected to contribute to country-specific recommendations addressed to Sweden, in particular “focus investment on the green and digital transition, in particular on […] high-tech and innovative sectors” (country-specific recommendation 1, 2020).

D.1.    Description of the reforms and investments for non-repayable financial support

Investment 1: Joint public administration digital infrastructure

The investment, which shall be coordinated by the Swedish Agency for Digital Government with the involvement of different Swedish agencies, consists of developing new digital services and upgrading and modernising existing ones, in particular services that enable standardised digital public-sector services for businesses and citizens such as digital post and support services that enable information exchange and handling such as identity and trust frameworks. The aim is to achieve greater efficiency and security in handling public data, whilst offering citizens and businesses standardised solutions across the public administration. Funds shall be allocated to a common appropriation from which grants shall be paid to the participating authorities, in order to assist them in the development and establishment of standardised digital infrastructure and jointly developed solutions. In particular, the investment shall consist of a national framework for primary data, new and improved digital services, as well as support services for the exchange and handling of information and a common trust and security framework.

The implementation of the investment shall be completed by 31 December 2023.

Investment 2: Broadband expansion

The measure shall fund support for the expansion of broadband connectivity where market operators cannot expand on a commercial basis. The central government support shall be managed by the Swedish Post and Telecom Authority, which shall test eligibility, decide on grants, make payments, and supervise and monitor the implementation. Support shall be provided up to a connection point, for example fibre, (‘homes passed’) and for infrastructure with a capacity of at least 1 Gbit/sec. The grant decision shall include provisions on operational security and reliability and an obligation for the recipient of the support to deliver broadband connection to the end users upon request within three years after the completion of the project (‘homes connected’). The support shall be technology neutral, provided that projects comply with the requested speeds.

The implementation of the investment shall be completed by 31 December 2025.

D.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

See table below. The date of the baseline for all indicators is 1 February 2020 unless indicated differently in the description of the action. Amounts in the table do not include VAT.

E. COMPONENT 5: Investment for growth and housing

This component shall include reforms and investments aiming at reducing frictions and foster investments in the housing market.

High house prices and associated high household debt have been identified as macroeconomic imbalances in the Swedish economy since the start of the macroeconomic imbalance procedure, leading to dedicated country-specific recommendations.

The reforms and investments related to the housing market shall aim to increase housing supply in the rental market and student housing through building subsidies, to improve prerequisites in housing construction, to reduce bottlenecks in the construction permit procedure, and to reduce the capital gains tax on housing.

Against this background, the objective of this component of the Swedish recovery and resilience plan shall be to contribute to increased housing construction and to improve the efficiency of the housing market. The component contains one investment and five reform measures.

The reform measures related to the housing market shall (1) allow stakeholders to participate in the construction planning process, (2) simplify and increase the efficiency of the regulatory framework for building permits, (3) improve prerequisites in housing construction, (4) raise the ceiling on deferred capital gains, and (5) abolish the taxed calculated income on deferred capital gains.

The component is expected to contribute to country-specific recommendations addressed to Sweden, in particular “address risks related to high household debt by gradually reducing the tax deductibility of mortgage interest payments or increasing recurrent property taxes. Stimulate investment in residential construction where shortages are most pressing, in particular by removing structural obstacles to construction. Improve the efficiency of the housing market and revising the design of the capital gains tax” (country-specific recommendation 1, 2019).

E.1.    Description of the reforms and investments for non-repayable financial support

Investment 1: Investment aid for rental and student housing

The investment measure aims to relief the housing shortage by increasing the supply of new rental dwellings with a lower rent relative to new non-subsidised housing. Together with restrictions concerning income requirements these dwellings shall be economically accessible to a larger number of households, easing the situation also for individuals in the lower half of the income distribution, students or people becoming active on the labor market. Construction subsidies shall be paid to houses to be completed in 2022 and 2023. Several conditions shall be attached to ensure that the target group is reached, namely, the investment aid is conditional on a maximum rent whereas the landlord may not refuse a prospective tenant to rent a subsidised dwelling on the ground that the income is too low, as long as the person or household is in a position to pay the rent. The support scheme shall give support to investments that achieve at least a 20% reduction in the primary energy demand at the level of the building. This is expected to fall in line with historical experience.

The implementation of the investment shall be completed by 31 December 2023.

Reform 1: Private right of initiative – involvement of planning stakeholders in zoning

The reform measure aims to shorten planning periods for zoning, in areas where construction is allowed. When the reform enters into force, more opportunities shall be given to stakeholders like property owners, developers and builders to initiate and partly to carry out the work on the development of detailed zoning plans. The municipality shall inform the requesting stakeholder what planning documentation is needed for a detailed planning including those documents related to national interests, beach protection and health and safety. The Planning and Building Act shall be revised to clarify that, notwithstanding the ultimate responsibility of the municipality, a proposal for a detailed zoning plan can be drawn up by property owners or others who take the initiative to propose a construction plan.

The implementation of the reform was to be completed by 31 December 2021.

Reform 2: A simplified and efficient regulatory framework for building permits

The reform measure aims to make the regulatory framework for building permits more effective and efficient. The reform measure shall establish (i) when a license or notification obligation should arise for different types of construction measures, (ii) which prescriptions should be complied with in order to obtain the permit, ensuring that license obligations are not more extensive than necessary to ensure the interest of society and neighbors (iii) necessary changes in procedural rules and (iv) also make the other proposals in the planning and construction regulations and in other regulations that are deemed justified on the basis of the investigator’s analyses and requests.

The implementation of the reform shall be completed by 31 December 2023.

Reform 3: Better prerequisites in housing construction

In order to enable increased predictability and efficiency in the construction process and to facilitate repeatable processes, the Government has put forward on 16 September 2021 a legislative proposal on certified construction project companies – a more predictable construction process. The reform shall modify the Planning and Building Act (SCS 2010:900) by introducing a new player in the Planning and Building Act, a certified construction project company (“Certifierade byggprojekteringsföretag – en mer förutsägbar byggprocess”).

A certified construction project company shall have specific expertise and experience in assessing the design requirements for effectiveness and accessibility as well as technical property requirements for the construction of residential buildings that shall be set out in government regulations, and shall be able to substantiate this with a certificate issued by a body accredited for that purpose. Furthermore, the reform shall allow that a developer can use a certified construction project company in the design of new residential buildings. If such an enterprise is used, the Building committee shall not take into account the requirements covered by the certification, either prior to a decision on building permits or start-up notices. It shall be optional for a developer to use a certified construction project company in the process.

The implementation of the reform shall be completed by 31 December 2022.

Reform 4: Higher ceiling for the deferred amount in the capital gains tax

The measure aims to lower transaction costs for real estate purchases by private home owners, thereby easing housing and labor mobility. The maximum amount of deferred capital gains was raised from SEK 1 450 000 to SEK 3 000 000.

The implementation of the reform was to be completed by 1 July 2020, applying to sales after 30 June 2020.

Reform 5: Abolishing the calculated income from deferred capital gains

The measure aims to lower transaction costs for real estate transactions by private home owners, thereby easing housing and labor mobility. The measure abolishes the standard income on deferred capital gains. Earlier, the deferred capital gains were subject to a standard income based on the set interest rate. This standard income had to be added to taxable income and was taxed at a 30% rate.

The implementation of the reform was to be completed by 1 January 2021, applying to tax years beginning after 31 December 2020.

E.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

See table below. The date of the baseline for all indicators is 1 February 2020 unless indicated differently in the description of the action. Amounts in the table do not include VAT.

2.Estimated total cost of the recovery and resilience plan

The estimated total cost of the RRP of Sweden is SEK 33 304 030 000, which equals EUR 3 289 286 914 on the basis of the EUR SEK ECB reference rate of 28 May 2021.

SECTION 2: FINANCIAL SUPPORT

1.Financial contribution

The instalments referred to in Article 2(2) shall be organised in the following manner:

1.1.First Instalment (non-repayable support):

1.2.Second Instalment (non-repayable support):

1.3.Third Instalment (non-repayable support):

1.4.Fourth Instalment (non-repayable support):

1.5.Fifth Instalment (non-repayable support):

SECTION 3: ADDITIONAL ARRANGEMENTS

1.Arrangements for monitoring and implementation of the recovery and resilience plan

The monitoring and implementation of the recovery and resilience plan of Sweden shall take place in accordance with the following arrangements:

·The international and economic department Ministry of Finance shall be the Coordinating Authority and shall have the overall responsibility for monitoring and implementation of the plan as a whole. The responsible public authority shall monitor, verify and validate the achievement of milestones and targets. The Coordinating Authority shall prepare and sign the management declaration and also be responsible for the preparation and submission of the requests for payment to the European Commission and for payments at national level.

·Public authorities (myndigheter) shall be responsible for the implementation of individual measures of the recovery and resilience plan of Sweden. They shall report to the Coordinating Authority on the progress of the implementation and on the achievement of milestones and targets.

·The overarching audit authority shall be the Swedish National Financial Management Authority (ESV). Recurrent audits on efficiency, effectiveness and reliability of accounts are regularly undertaken by the National Audit Office (NAO).

2.Arrangements for providing full access by the Commission to the underlying data

In order to provide full access to the Commission to the underlying relevant data, Sweden shall have in place the following arrangements:

·The Ministry of Finance bears the overall responsibility for the implementation of the recovery and resilience plan and is accountable on behalf of all public sector entities on the operational and administrative aspects of the RRP. To ensure coherence in the implementation of the RRP, the overarching audit authority is the Swedish National Financial Management Authority (ESV), which assists the Ministry of Finance with its overall coordination duties. The ESV is also responsible for collecting the data for monitoring the achievement of milestones and targets by the Ministry of Finance. The Ministry of Finance (Coordinating Authority) is responsible for handling and ensuring a central reply to requests for information and access to data on final recipients. The collection and storage of such data is ensured by the authorities responsible for implementing the RRP.

·In accordance with Article 24(2) of Regulation (EU) 2021/241, upon completion of the relevant agreed milestones and targets in Section 2.1 of this Annex, Sweden shall submit to the Commission a duly justified request for payment of the financial contribution. Sweden shall ensure that, upon request, the Commission has full access to the underlying relevant data that supports the due justification of the request for payment, both for the assessment of the request for payment in accordance with Article 24(3) of Regulation (EU) 2021/241 and for audit and control purposes.

(1) Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than the relevant benchmarks an explanation of the reasons why this is not possible should be provided. Benchmarks established for free allocation for activities falling within the scope of the Emissions Trading System, as set out in the Commission Implementing Regulation (EU) 2021/447.

(2)  Except projects under this measure in power and/or heat generation, as well as related transmission and distribution infrastructure, using natural gas, that are compliant with the conditions set out in Annex III of the ‘Do no significant harm’ Technical Guidance (2021/C58/01).

(3)

This exclusion does not apply to actions under this measure in plants exclusively dedicated to treating non-recyclable hazardous waste, and to existing plants, where the actions under this measure are for the purpose of increasing energy efficiency, capturing exhaust gases for storage or use or recovering materials from incineration ashes, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.

(4)  This exclusion does not apply to actions under this measure in existing mechanical biological treatment plants, where the actions under this measure are for the purpose of increasing energy efficiency or retrofitting to recycling operations of separated waste to compost bio-waste and anaerobic digestion of bio-waste, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.

(5)  Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than the relevant benchmarks an explanation of the reasons why this is not possible should be provided. Benchmarks established for free allocation for activities falling within the scope of the Emissions Trading System, as set out in the Commission Implementing Regulation (EU) 2021/447.

(6)  Except projects under this measure in power and/or heat generation, as well as related transmission and distribution infrastructure, using natural gas, that are compliant with the conditions set out in Annex III of the ‘Do no significant harm’ Technical Guidance (2021/C58/01).

(7)

This exclusion does not apply to actions under this measure in plants exclusively dedicated to treating non-recyclable hazardous waste, and to existing plants, where the actions under this measure are for the purpose of increasing energy efficiency, capturing exhaust gases for storage or use or recovering materials from incineration ashes, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.

(8)  This exclusion does not apply to actions under this measure in existing mechanical biological treatment plants, where the actions under this measure are for the purpose of increasing energy efficiency or retrofitting to recycling operations of separated waste to compost bio-waste and anaerobic digestion of bio-waste, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.