(1)

By letter of 31 January 2014 the Norwegian authorities notified their regional aid map applicable from 1 July 2014 to 31 December 2020 (‘the regional aid map’) pursuant to paragraph 156 of the Authority's Guidelines on regional state aid for 2014-2020 (‘the RAG’) (1). These guidelines require the EFTA States that intend to grant regional aid to notify regional aid maps.

(2)

This decision represents the Authority's assessment of the compatibility of the notified map with the RAG in accordance with paragraph 157 of these guidelines. The map itself does not involve any state aid within the meaning of Article 61 of the EEA Agreement. The Authority's approval of the map does not constitute an authorisation to grant any aid. The authorisation of the map establishes together with the RAG, the framework for granting regional investment aid. In that respect the map constitutes an integral part of the RAG (2).

(3)

The Norwegian authorities have only notified regions qualifying for the derogation under Article 61(3)(c) of the EEA Agreement. Due to the relatively high GDP per capita, no Norwegian region qualifies for the derogation under Article 61(3)(a) of the EEA Agreement (3).

(4)

In Norway, Statistical regions at level 3 correspond to counties and Statistical regions at level 5 to municipalities.

(5)

Norway currently has 19 counties and 428 municipalities.

(6)

Norway has eight counties with population density of less than 12,5 inhabitants per km2 (4). These are the following:

(7)

The total population of these 8 counties is 1 255 027 (5) which represents 25,51 % of the Norwegian population. Consequently, the national population coverage for Norway for the relevant period is 25,51 % (6).

(8)

The Norwegian authorities have notified the following four counties as eligible for regional investment aid in their entirety:

(9)

The remaining four counties are only partially covered by the notified map. The Norwegian authorities have explained that individual counties in Norway are very heterogeneous. Some counties contain central regions with high population densities and thriving economic activities as well as areas with low population densities that struggle with depopulation. This applies both to counties with population densities above and below 12,5 inhabitants per km2. For this reason, the Norwegian authorities argue that an assisted area solely based on Statistical regions at level 3 would not reflect the real challenges that Norway faces in certain regions. Therefore the Norwegian authorities have applied the flexible approach set out in paragraph 149 of the RAG when considering the delimitation of areas eligible for regional aid.

(10)

Table 1, below, provides an overview of the municipalities in low population density counties that are excluded from the regional aid map (‘swapped-out municipalities’).

Table 1

(11)

These swapped-out municipalities have a total population of 350 555.

(12)

Table 2, below, provides an overview of municipalities in high population density counties that are included in the regional aid map (‘swapped-in municipalities’).

Table 2

(13)

The swapped-in areas have a total population of 349 002.

(14)

Table 3, below, provides an overview of all the municipalities included in the regional aid map.

Table 3

(15)

The total number of municipalities covered by the regional aid map is 281.

(16)

Paragraph 149 of the RAG sets out three requirements which must be met in order to swap-in areas from counties with a population density above 12,5 inhabitants per km2.

(17)

Firstly, the swapping exercise must not result in an increase in the population covered as set out in paragraph 142 of the RAG. The pre-notified aid area covers 1 253 474 inhabitants which represents 25,48 % of Norway's total population, and thus falls below the 25,51 % national population ceiling as set out in paragraph 142 of the RAG. The Authority therefore concludes that this requirement is met.

(18)

Secondly, the parts of the counties qualifying for flexibility must have a population density of less than 12,5 inhabitants per km2 at county level. As demonstrated by table 2 above, this requirement is met for the swapped-in municipalities at county level.

(19)

Thirdly, the swapped-in municipalities must be contiguous areas adjacent to the counties with a population density of less than 12,5 inhabitants per km2. The Authority concludes that the swapped-in municipalities meet this requirement, as illustrated by the map attached as Annex 1 to this decision (7).

(20)

All eligible areas will have a general aid ceiling of 15 % gross grant equivalent (GGE), this is supplemented by an increase of 20 % for small enterprises or 10 % for medium-sized enterprises. These aid intensities comply with the thresholds set out in paragraphs 154 and 155 of the RAG.

(21)

In compliance with paragraph 156 of the RAG, the notified map will be in force from 1 July 2014 to 31 December 2020. If necessary, as provided for in paragraph 161 of the RAG, the notified map may be subject to a mid-term review in June 2016 to identify possible areas that may be eligible for regional aid under Article 61(1)(a) of the EEA Agreement and the level of the aid intensity corresponding to their GDP per capital.

(22)

In addition, this decision does not restrict the powers of the Authority to review the map in accordance with Article 1(1) in Part I of Protocol 3 to the Surveillance and Court Agreement, if necessary, before the end of the period referred to above.

(23)

On the basis of the foregoing assessment, the Authority considers that the Norwegian regional aid map for 2014-2020 is compatible with the principles set out in the RAG as the area covered does not exceed the eligible population coverage as set out by paragraph 142 of the RAG. The swapped-in areas also meet the other requirements set out in paragraph 149 of the RAG, as the aid intensities respect the thresholds set out in paragraphs 154 and 155 of the RAG, and as the duration does not exceed the duration of the RAG as set out in paragraph 156 therein,