Commission approves aid for social housing for the elderly in Sweden

Background and further information:

Due to a general lack of housing in Sweden, housing with specific requirements for elderly people is not seen by the private sector as a priority. Faced with an ageing population and a growing demand, the government decided to set up a scheme to encourage the construction of such housing by offering additional financial incentives.

For a limited period, incentive grants corresponding to approximately 10% of the construction costs would be available to private owners who decide to provide such housing. The scheme was set up in a way to limit any adverse effect on competition. It was open to all property owners without discrimination.

The European Commission found that the incentives proposed by Sweden adhere to the principle of social equity without unduly distorting competition in the Single Market.

The European Commission authorised Sweden on 7 March 2007 to support construction of special housing for elderly people between 2007 and 2011, under the EC Treaty's rules on state aid, amounting to a total of €270 million (2500 million SEK).