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PR(01)15: Icelandic areas eligible for regional aid authorised by the EFTA Surveillance Authority


The EFTA Surveillance Authority has approved a proposal from the Icelandic authorities, on the system of regional aid in Iceland. The new map of assisted area has been authorized until the end of 2006. The assisted area in Iceland covers 33,2% of the total population (93.812 persons out of a total population of 282.845 persons). The population density of the regional aid area is 0.92 inhabitants per square kilometre.

The Authority agreed with the Icelandic authorities that the country could be divided into two areas, the capital area surrounding the capital Reykjavík and the rural area, the latter being eligible for regional aid. The Authority also agreed that the population density should be the major criterion for the selection of the eligible areas.

The capital area not eligible for regional aid is defined as the capital Reykjavík and the adjoining municipalities of Kópavogsbær, Seltjarnarneskaupstaður, Garðabær, Hafnarfjarðarkaupstaður, Bessastaðahreppur, Mosfellsbær, Reykjanesbær, Sandgerðisbær, Gerðahreppur and Vatnsleysustrandahreppur. The rest of the municipalities are within the regional aid map.

As for aid intensity, the Authority has accepted that the general aid ceiling in the assisted area will be 17% of eligible costs, expressed in net terms, and that firms qualifying as Small and Medium-sized Enterprises (SMEs) will be eligible for a top-up of 10% gross.

For further information please contact Mr. Michael Sánchez Rydelski on tel. 286 18 34.

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