The European Commission has authorised under the EC Treaty rules on State aid a Swedish plan to provide guarantees that will enable Volvo Personvagnar to access loans from the European Investment Bank. The loans will help to finance the development of environmentally friendly cars. The 90% of the guarantees that constitute State aid meet the requirements of the Commission’s Temporary Framework for State aid measures and are accordingly compatible with Article 87(3)(b) of the EC Treaty, which permits aid to remedy a serious disturbance in the economy of a Member State. In particular, Volvo will pay an adequate remuneration for the guarantee and provide sufficient securities in the event of the guarantees being drawn.