Brussels, 27/06/2007 (Agence Europe) - On Wednesday, the European Commission approved the modified reintroduction of a mechanism in Sweden to refund seafarer's income tax deducted at source as well as employers' social insurance contributions in respect of Swedish tax-liable seafarers working on Swedish flagged vessels. The measure is expected to decrease flagging-out of the European maritime fleet, preserving employment and maritime know-how in the Community. The Commission examined the measure and authorised it after checking its compliance with Community rules. In a press release, it says that the measure will also extended to publicly procured transport domestic traffic (cabotage) services but only from 1 January 2009, when the current contract for the only qualifying such service comes up for renewal. The measure also covers an additional fee levied on paid wages (allmän löneavgift). The previously authorised scheme was approved by the Commission in 2001. The modified scheme will run until 17 January 2011 and is expected to cost up to SKK 1800 million (€200 million) per year. (ol)