By letter of 17 November 2017 Sweden proposed that the Commission amend Decision C(2010) 6050 in order to simplify the administration of the scheme and to take account of the changes in the common agricultural policy as well as of the economic developments in the agriculture in the northern regions of Sweden. On 6 December 2017, Sweden sent to the Commission additional information concerning the proposal.

Given the resulting amendments to Decision C(2010) 6050 and the number of previous amendments, it is appropriate to replace that Decision by a new Decision.

The long-term national aid referred to in Article 142 of the Act of Accession is intended to ensure that agricultural activity is maintained in northern regions as determined by the Commission.

Taking account of the factors referred to in Article 142(1) and (2) of the Act of Accession it is appropriate to specify the administrative units, grouped by sub-regions, which are situated north of the 62nd parallel or adjacent to that parallel and which are affected by comparable climatic conditions rendering agricultural activity particularly difficult. These sub-regions have a population density lower than or equal to 10 inhabitants per square kilometre, a utilised agricultural area (UAA) considered to constitute 10 % or less of the overall surface area of the municipality and a portion of the UAA devoted to arable crops intended for human consumption less than or equal to 20 %. Sub-regions surrounded by others within such areas should be included, even where they do not satisfy the same requirements.

The reference period in relation to which the development of agricultural production and the level of overall support is to be considered, using the available national statistics as a basis and with a view to ensuring a uniform application to all sectors of production, should be the year 1993.

According to Article 142 of the Act of Accession, the total amount of the aid granted should be sufficient to maintain agricultural activity in the northern regions of Sweden but may not lead to overall support exceeding the level of support during a pre-accession reference period to be determined. In order to grant support under Article 142 of the Act of Accession at an adequate level considering the present production costs whilst not exceeding the level of support during the determined pre-accession reference period it is appropriate to take the development in the consumer price index from 1993 to 2017 in Sweden into account when determining the maximum allowable level of aid under that Article.

Consequently, on the basis of 2017 data, and having regard to the 5-year reporting periods laid down in Article 143(2) of the Act of Accession, the maximum annual aid amount should be set at SEK 422,92 million, calculated as an average over a 5-year period from 1 January 2018 until 31 December 2022.

In order to simplify the Nordic aid scheme and to allow Sweden flexibility in directing the aid to different production sectors, one maximum average annual aid amount should be laid down for the total support, including a separate maximum support for the production and transport of cow's milk with a view to ensuring balanced distribution of support.

The aid should be granted annually on the basis of production factors (livestock units and hectares), except for cow's milk where it should be granted on the basis of units of production (kilograms) within the total limits laid down by this Decision.

With a view to allowing prompt reactions to the volatility of agricultural output prices and to maintaining agricultural activities in the northern regions of Sweden, it is appropriate to allow Sweden to establish, for each calendar year, the amount of aid per sector within an aid category and per unit of production.

Sweden should differentiate the aid in its northern regions and set the annual aid amounts according to the severity of the natural handicap and other objective and transparent and justified criteria relating to the objectives set out in the third subparagraph of Article 142(3) of the Act of Accession, which are to maintain traditional primary production and processing particularly suited to the climatic conditions of the regions concerned, to improve the structures for the production, marketing and processing of agricultural products, to facilitate the disposal of the said products and to ensure that the environment is protected and countryside preserved.

The aid should be paid annually based on the actual number of eligible production factors. Sweden should however be allowed to pay the aid for cow's milk, laying hens and pigs for slaughter as well as for transport of cow's milk in monthly instalments. The aid for cow's milk shall be based on actual production in order to ensure the continuity of production.

Overcompensation to the producers should be avoided by recovering undue payments promptly and at the latest before 1 June of the following year.

As provided for in Article 142(2) of the Act of Accession, the aid granted under this Decision should not lead to an increase in overall production over the traditional production level in the area covered by the Nordic aid scheme.

Therefore it is necessary to establish an annual maximum number of eligible production factors for each aid category, and a maximum eligible annual amount of production for cow's milk, at a level equal to or lower than that in the reference periods.

Where the number of production factors in a category, or the amount of production for cow's milk, exceeds the maximum level in a given year, the number of eligible production factors or the amount of cow's milk, should, in order to respect the 5-year averages, be reduced by a corresponding number of production factors in the calendar years following the year in which the maximum was exceeded, except for transport aid for cow's milk, laying hens and pigs for slaughter and cow's milk in regard to which the eligible amount may be reduced by an amount corresponding to the excess amount in the last month of the year in which the maximum was exceeded.

In accordance with Article 143(2) of the Act of Accession, Sweden is to provide to the Commission information on the implementation and effects of the aid. In order to better assess the long-term effects of the aid and with a view to setting the aid levels as 5-year averages, it is appropriate to report on the socioeconomic effects of the aid every 5 years and provide annual reports containing the financial and other implementation information necessary to ensure that the conditions laid down in this Decision are complied with.

It is appropriate to specify the rules applicable to amendments to the scheme introduced by the Commission or proposed by Sweden in order to safeguard the legitimate expectations of the aid beneficiaries and ensure the continuity of the scheme so that the objectives of Article 142 of the Act of Accession can be efficiently pursued.

Sweden should ensure that appropriate control measures are taken vis-à-vis aid beneficiaries. In order to ensure the effectiveness of those measures and transparency in the implementation of the Nordic aid scheme, those control measures should be as far as possible aligned to those carried out under the common agricultural policy.

In order to achieve the aim of maintaining production, as stated in Article 142 of the Act of Accession, and to facilitate the administration of support, this Decision should apply from 1 January 2018.

Decision C(2010) 6050 should therefore be repealed with effect from 1 January 2018. It is appropriate to provide transitional measures regarding the reporting on the support pursuant to Article 142 of the Act of Accession paid in 2017 under Decision C(2010) 6050,