Press Release: State aid: Commission approves aid for reduction of social security contributions in Sweden

The European Commission has decided not to raise objections under EU state aid rules to an aid scheme for the reduction of social security contributions for SMEs in certain services sectors in Sweden. The measure aims at boosting employment in the sectors concerned in the long run. It will provide incentives to employers to employ more workers on a declared work basis, in particular workers who are particularly vulnerable (immigrants, less educated people, the young, women working part-time) in certain service industries particularly exposed to tax evasion and with a high proportion of undeclared work. The Commission found that on balance the positive effects of the measure outweighed the potential distortion of competition.