STATE AID — ICELAND

Notice by the EFTA Surveillance Authority to EFTA States, EU Member States and other interested parties

State aid measure 47901 (former SAM 030.02.006) — Proposed aid in the form of a State guarantee in favour of deCODE Genetics in relation to the establishment of a drug development department

(2005/C 277/09)

By letter dated 27 May 2002, the Icelandic Government notified the EFTA Surveillance Authority of a proposal to provide a guarantee to deCODE Genetics Inc. (US) in connection with a research and development project which the company intends to undertake in the field of biotechnology in Iceland.

In May 2002, the Icelandic Parliament authorised the Ministry of Finance to issue a guarantee to deCODE Genetics Inc. (US) in relation to a bond amounting to USD 200 million. The proceeds of the bond would be utilised to establish a new drug development department in Iceland and to finance several drug development programmes.

On 16 July 2003, the Authority initiated the formal investigation procedure laid down in Article 1(2) of Protocol 3 to the Surveillance and Court Agreement in respect of the aid. The decision was published in the EEA Section of and the EEA Supplement to the Official Journal of the European Union  (1).

By letter dated 14 April 2004, Iceland withdrew the above notification.

As the Icelandic authorities have withdrawn the notification and do not intend to grant the aid notified, the Authority has decided to close the proceedings initiated under Article 1(2) of Protocol 3 to the Surveillance and Court Agreement.

(1)  OJ C 308, 18.12.2003, p. 22 and EEA Supplements to the Official Journal of the European Union No 63, p. 10 of the same date.