Finland itself has wanted to take advantage of a lot of government subsidies recently, Industry Commissioner Thierry Breton pointed out during his visit to Helsinki.
The Finnish government and the EU Commission are at odds over what kind of state aid is allowed in the trade competition with the United States and China. The EU summit will resolve the matter at the end of the week.
Last week, the commission proposed relaxing state aid rules for a couple of years. Finland opposes the idea strictly (you switch to another service) among other things, because it is afraid of big countries like Germany and France owning investments for itself.
EU Commissioner for Industry Thierry Breton traveled to Helsinki to meet the government and business community on Monday. Breton’s message was that we are living in a “permacrisis”, i.e. a prolonged series of uncertainties and crises, and that is when special measures are needed.
– The corona crisis was answered with temporary state subsidies, the same for the energy crisis. Now we have a green technology crisis, which requires limited, temporary state subsidies, Breton argued in an interview with .
The climate technology crisis has arisen when not only China but also the United States attracts investments from Europe with its new support policy.
– The transfer of investments to the United States can be prevented with limited subsidies, assigned only to a certain industry, which correspond to the support measures of the United States – no more and no less.
Many large companies in Finland are also considering moving their production to the United States.
According to Breton, a flexible system could be created for state subsidies in the EU. When there is a crisis in a sector, it would be allowed to support it temporarily.
Finland, on the other hand, is afraid of the growing role of this leading state in business life and a kind of planned economy.
– The United States is the one that has become protectionist. Europe needs to understand that, says Breton.
Breton points out that Finland, along with Denmark, has sought the most flexibility in the state aid rules during the energy crisis, when the subsidies are proportional to the size of the gross national product.
– I’m not criticizing them, there has been a need for subsidies in the energy sector. Countries may not be placed opposite each other. Everyone can have problems at some point, Breton emphasizes.
According to the Finns, the figures are distorted by the autumn’s large loan programs for the electricity market. The budget was a total of 15 billion euros, but loans have only been granted for just under 200 million euros.
Breton does not swallow the explanation:
– In the case of other countries, it is also a matter of requested flexibilities. Denmark and Finland applied for them relatively the most, more than France, Italy, Spain or Greece.
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