Services of general economic interest - an (im)possibility in Swedish municipal housing policy - An evaluation of the applicability of the EU provisions on services of general economic interest on housing provision in Sweden

Abstract: In light of the housing shortage in Sweden, municipalities all over the country are struggling to fulfil their responsibility of housing provision. In many municipalities it is an imminent problem to provide affordable and proper housing, not least for the most vulnerable groups in society. This situation has not gone by unnoticed. Several political initiatives have been taken in order to examine and resolve problems in regard to housing provision, and the discussion has put state aid rules in the limelight as a possible solution. The possibility for municipalities to fulfil their responsibility of housing provision by use of EU state aid rules on services of general economic interest has caught particular interest, especially in Swedish preparatory acts, as well as created ambiguity as to the applicability of these state aid rules in municipal housing policy. Following this legal uncertainty, municipalities have been reluctant to use these state aid rules in order to fulfil their responsibility of housing provision. This thesis examines if housing provision is considered to be a general interest in Sweden, and as such, if it can fall within the concept of services of general economic interest for the purpose of EU state aid rules. It highlights the possibilities that the provisions on services of general economic interest can offer for municipalities, and analyses the application of such rules in municipal housing policy. The thesis argues that municipalities lack legal prerequisites in order to apply the EU provisions on services on general economic interest, and suggests that clarity and guidance is best provided by use of national law.