After the Chernobyl accident in 1986, the Swedish Parliament decided that nuclear power production should gradually be phased out. In 1997, the Acton Phasing-Out Nuclear Power was passed. This Act empowers the Swedish Government to decide to close nuclear reactors. Under Act, the owner of a reactor, which is closed, is entitled to compensation from the state. On 5 February 1998, the Government decided to close one reactor in Barsebäck. The owner of the reactor and its parents challenged the legality of the Government's decision. The applicants alleged, inter alia, that the decision violated the Instrument of Government, the European Convention for the Protection of Human Rights and Fundamental Freedoms, EC law and the Energy Charter Treaty. On 16 June 1999, the Supreme Administrative Court rejected the complaints. Sydkraft AB then brought complaints to the European Commission alleging, inter alia, that the Supreme Administrative Court had failed to refer to the European Court of Justice questions of interpretation of Article 86(1) and under the Environmental Impact Assessment (EIA) Directive. An agreement for compensation was entered into in November 1999. In 2002, the European Commission found that Sweden had not complied with its obligations under the EIA Directive. In December2004, the Government decided to close Barsebäck 2, which decision resulted in a further agreement on compensation.