subventioner

Subventioner, the term used in Swedish and Norwegian for government financial assistance to individuals, firms, or sectors, corresponds to the English word subsidies. They are designed to support activities that are deemed valuable for the economy or society but would not occur at sufficient scale in a free market. Subventioner can take many forms, including direct cash payments or grants, tax credits or exemptions, price supports or minimum price guarantees, concessional loans or loan guarantees, and preferences in public procurement. They may be targeted to specific industries, regions, or social groups, or to activities such as research and development, environmental protection, culture, or housing.

Subventioner are used to pursue policy goals such as promoting industrial development, stabilizing prices and employment, stimulating innovation, reducing environmental impact, or increasing access to essential services. They can influence prices, production levels, and investment decisions, thereby correcting market failures or achieving social objectives.

Critics argue that subsidies can distort competition, impose costs on taxpayers, and create dependency or misallocation of resources. To mitigate risks, governments often require impact assessment, performance criteria, transparency, and periodic reviews, and may design sunset clauses or conditionality.

Subventioner are regulated by national legislation and international rules. In many regions, state aid rules or competition law restrict certain subsidies that distort trade and competition; rules may also exist for environmental or regional subsidies to be compatible with WTO agreements or EU state aid provisions.

Examples of subventioner include agricultural subsidies such as price supports, subsidies for renewable energy, housing allowances, and grants for research and development.