Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure SE-2020-27/1257 – Updated – measures in Sweden
|Country||Sweden , applies nationwide|
|Time period||Temporary, 01 July 2020 – 31 March 2022|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Direct subsidies (full or partial)
|Author||Amanda Kinnunen (Oxford Research)|
|Measure added||07 October 2020 (updated 01 June 2022)|
Reorientation support is a measure that seeks to both support companies during the first stages of the COVID-19 crisis and also help them to adapt their business activity in the rapidly changing labour market.
The legal basis of this measure is the Decree on Reorientation support (2020:552) (in Swedish 'Förordning om omställningsstöd').
This measure is available for companies and organisations that have lost a significant part of turnover during spring 2020. It was first available only for March and April 2020 (the application period was between July 2020 and August 2020) but at the beginning of September 2020, the Government proposed to make the applications for May, June and July 2020 possible.
In order to be eligible, applicants must meet the following requirements:
The amount depends on the extent of the decline in net turnover. The maximum amount of support is SEK 30 million (approximately €3 million). It covers up to 70% of the fixed costs. Small companies can get 75-90% of their fixed costs compensated.
This measure is administrated by the Swedish Tax Agency (Skatteverket). The budget for the support in March and April was SEK 39 billion (approximately €3.9 billion). No information available regarding budget for the extension (May, June and July 2020).
This form of support has been particularly popular in the hotel and restaurant sector, in the transport sector, and wholesale and retail trade.
As of 5 August 2020, approximately 12,000 companies had applied for support and 9,335 had been granted support. The amount of support granted was SEK 663 million (approximately €63 million).
Since the application reopened on 25 February, companies has (as of March 23) applied for SEK 285 million in support for the months of August – October. The amount applied for November – December amounts to approximately SEK 480 million. For the last two support months, January – February, which became available to apply for in March, companies have so far (as of March 23) applied for SEK 105 million in support.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
No information available.
The Confederation of Swedish Enterprises (Svenskt Näringsliv) has argued for the extension of this measure to cover May, June and July 2020. They have also criticised this measure for not been suitable for companies that have been newly established. The use of the comparison period (usually 2019) excludes companies that were established less than a year ago.
Eurofound (2020), Reorientation support for companies, measure SE-2020-27/1257 (measures in Sweden), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/SE-2020-27_1257.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.