The Finnish Confederation of Business supports the EU’s common fund, from which support would be distributed to the best projects based on competition.
BRUSSELS The subsidies distributed by the largest EU countries to their companies worry both the Finnish business life and the government. However, the solutions differ from each other.
The EU liberalized the rules for distributing business subsidies during the pandemic, and the liberalization has continued. The large member countries Germany and France are able to distribute large investment subsidies to their companies. A small member state cannot afford similar subsidies.
With subsidies, EU countries respond to the attractive business subsidies and tax breaks distributed by the United States.
At the same time, subsidies confuse the operation of the internal market in the EU and distort competition.
In the spring, EK proposed the establishment of an EU investment fund to distribute subsidies. However, the initiative did not receive a response from the government. The Finnish government, on the other hand, demands that the EU return to the old, i.e. strict regulation of state aid.
CEO of EK Jyri Häkämies emphasizes that the organization would normally support tightening the distribution of state subsidies, but the goal is not realistic now.
– The government has a consistent line, which we would normally support.
Purity is not worth it, however, if it gets sidetracked from decision-making.
– If you just say no, you are not reforming. Is it a victory to be right alone, Häkämies asks.
EK presented its goals for the program of the next EU Commission in Brussels. According to the organization, improving competitiveness is the most important task for the next season.
Investment financing is promised, among other things, to speed up green investments.
EK wants funding to be allocated directly to companies and their projects. Money would therefore not be distributed to member countries based on, for example, gross national product, in which case the poorer countries and not the best projects would be successful in the distribution of money.
EK wants the projects to compete for funding so that the best ones win. Then Finland can get on the receiving side.