Annual scoreboard: Iceland, Liechtenstein and Norway reduce overall State aid spending

The EEA EFTA States in 2022 reduced their spending on State aid, according to the EFTA Surveillance Authority's (ESA) latest annual State Aid Scoreboard. The scoreboard, published today, summarises the amounts of aid granted by the three EEA EFTA States in 2022.

Combined, the three states spent a total of EUR 7.2 billion in 2022, representing a nominal reduction of around 15% from 2021. This reduction was mainly driven by the phase-out of measures to mitigate the economic impact of the COVID-19 pandemic. The large reduction in COVID-aid outweighed increased spending on environmental objectives and regional and sectoral development. In 2022, aid to environmental objectives represented nearly half of all state aid spending in the EEA EFTA States.

• Iceland reported spending EUR 288 million on State aid (1.1% relative to GDP), a 42% reduction from 2021. Most of the aid was granted to research, development and innovation objectives and environmental objectives. Tax concessions were the main aid instrument.
• Liechtenstein saw an increase in State-aid spending. The country spent around EUR 8 million on aid (0.1% relative to GDP), mostly to achieve environmental objectives. This represents the lowest expenditure relative to GDP of all the EEA States. All aid was allocated via direct grants.
• Norway reported spending of around EUR 6.9 billion on State aid (1.2% relative to GDP), a 13% reduction compared to the previous year. Despite this decreased spending, there was an increase in aid to environmental objectives. Tax concessions continued to be the main aid instrument.

All three states continued using the General Block Exemption Regulation (GBER), which simplifies the granting of aid. GBER lowers the administrative burden on the states and allows them to grant aid faster. At the same time, the GBER allows ESA to focus its attention on cases with the greatest impact on competition and trade within the EEA.

By comparison, State aid expenditure among the EU Member States ranged between 2.1% and 0.3% of the national GDP in 2022, with an average of 1.4%.

Download the 2022 Scoreboard here.

Background

The scoreboard, published annually, is a benchmarking tool for measuring trends in State aid expenditure by the EEA EFTA States as well as across the EEA more generally.

The EEA Agreement prohibits State aid to ensure a level playing field for companies across Europe, and to prevent protectionism. Exemptions can be made for purposes such as environmental protection, regional support and research, innovation and development. To a large extent, such aid may be granted without prior approval from ESA under the General Block Exemption Regulation. If a measure is not covered by a block exemption, the EEA EFTA States must notify the aid to ESA before granting it. State aid received in breach of the rules must be paid back with interest.

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