The Finnish government and the business community fear that French views on industrial policy are becoming part of EU policy.
France and Finland are now at odds, especially over state subsidies. Recently, several French delegations have visited Helsinki, hosted and hosted by different parties – and that’s no coincidence.
More on the subject: The European Union is planning a bold step where Finland could be the big loser
The French administration believes that it is a matter of life and death for European industry and jobs to quickly respond to the new US climate law. The US now strongly supports its own companies and discriminates against the industry of traditional trading partners such as EU countries.
The Finns, on the other hand, think that the plans presented in the EU for a response to the United States – which show the French pen mark – would start a competition for state aid in Europe, in which the big member countries are the winners.
France has become the driver of European change with its active president Emmanuel Macron in the season. This has been succeeded by the Chancellor of Germany By Olaf Scholz while remaining in the background.
France is now trailing Germany. You can see it, for example, from the countries a few weeks ago of the Elysée agreement (you switch to another service) From the 60th anniversary announcement.
On paper (you switch to another service) has almost word for word the same goals as in the petition that France wrote to the EU Commission at the beginning of January. The same designs also ended up on the table of last week’s EU summit.
We interviewed two French influencers about the differences of opinion between Finland and France. The finicky attitude of the Finns frustrates them both.
Deputy Director General of Medef, the French industry and employers’ association Fabrice Le Saché visited Finland last week at the invitation of EK of the Finnish Confederation of Business. In Helsinki, he met economic influencers such as the Minister for Europe Tytti Tuppurainen (sdp).
Le Saché has also been successful in trading African carbon emissions rights as one Aera (you switch to another service)– about the founders of the company. He is also a member of the management of Business Europe, the European umbrella organization of business life.
“Business subsidies are the morphine of the economy”
Le Saché does not believe in business subsidies financed from public funds, which he calls economic morphine. In his opinion, the EU’s competitiveness should be improved with more original means.
– We have to find our own European way, i.e. strive to harmonize taxation in different countries, reduce the regulation of companies, facilitate licensing processes, Le Saché enumerates.
However, the US legal package comes at a very difficult time for Europe, and therefore, according to Le Saché, well-targeted subsidies can make sense. If some sectors are at risk of the “death” of companies due to momentary shocks, well-managed and limited government subsidies can save them.
– There is a war in Europe and companies are facing many shocks: energy is expensive, inflation is high, interest rates are rising and financing is becoming expensive, there is a labor shortage, wages are rising, there are problems in subcontracting chains. And on top of that, the Americans very strongly attract Europeans to invest in the United States, says Le Saché.
– The Americans must be made to understand that it is not in their interest to weaken Europe like this right now.
In his opinion, power relations with the United States need to be rethought. Joe Biden has continued Donald Trump’s America First policy.
“France wants Europe to have a voice in the world”
In Le Saché’s opinion, French and Finns should learn to understand each other.
– France does not want Europe to be just a trading post for the United States and China. European capitalism is different from anywhere else, we also have different values than the USA, China, Turkey or Russia.
According to him, France’s main goal is to make Europe a world power that cannot be walked over, but its motives are often misunderstood.
– Sometimes France tries to get through its goals clumsily, sometimes arrogantly, but its goal is to build Europe into a single political actor.
In recent years, Finnish ministers and representatives of the business world have had a habit of repeating that after Britain’s exit from the EU, support for free trade has decreased in the corridors of power in Brussels.
In the video, Industry Commissioner Thierry Breton answers the question whether support for protectionism has increased in the EU after Brexit.
“Europe is the last follower of free trade”
EU Commissioner for Industry by Thierry Breton think that Europe is the last continent that follows the rules of free trade.
– China has been giving out a lot of government subsidies for a long time, and now the United States is also breaking away [vapaakaupasta]Breton says.
Breton thinks it would be naïve to think that Europe can continue as if nothing had happened after the new US laws. There is a crying need for clean technology in Europe, and the fear is that it will have to be imported from the United States and China in the future.
– Our duty is to act, because otherwise many companies leave these strategic sectors from Europe to the United States. At the same time, jobs are lost.
According to Breton, the EU needs to build its own way to attract clean technology clean tech companies to Europe and get them to settle “in Finland, Poland, Italy as well as Spain”. It may also require “targeted and precisely limited” state subsidies.
More on the subject: French commissioner’s message to Finns: “Europe must understand that the United States has become protectionist”
Breton has a multi-phased career, including CEO of France Télécom and Atos, professor at Harvard University and Minister of Finance of France.
As he is also Macron’s trusted man, he has a lot of influence in Brussels. His handprint was also visible in the countermeasures to the United States presented by the Commission a couple of weeks ago.
Breton believes that when state subsidies are precisely targeted to climate technology and their conditions are relaxed for only two to three years, it is enough to create a favorable environment for investments for a long time.
The Finns, on the other hand, fear that business subsidies will lead to a more permanent change in mindset: state leadership will increase in European economic policy.
Now the commission is preparing its proposal to improve Europe’s competitive position by the end of March. The chairman is coming Ursula von der Leyen by basic package (you switch to another service).
Does the relationship between France and Finland make you think? You can discuss the topic until 23:00 tomorrow.