The European Commission has approved Sweden’s proposal to give Saab Automobile AB a State guarantee that will enable it to access a loan from the European Investment Bank (EIB). Almost 83% of the guarantee was held to be permissible under the Commission’s Temporary Framework for State aid measures, which regulates the use of State funding during the present economic downturn. The €400m EIB loan will be used for a project related to improving fuel efficiency and car safety. In exchange for the guarantee, Saab will pay a premium and provide the Swedish Government with high value collateral covering the full amount. The level of premium is consistent with the Commission’s Framework. For the remaining 17% of the guarantee, a premium of 12.48% is consistent with the current market price for covering the risk and therefore this element does not constitute State aid.