The Finnish government intends to use EUR 2.3 billion to finance the recovery of the EU economy, primarily to reduce climate emissions and promote ecological sustainability.
On Friday, the government approved a report on the use of EU stimulus funds, according to which the plan supports the goals of economic, social and environmental sustainability of the current government program.
Parliament will discuss the plan next Tuesday.
Additional funding of around € 1 billion for economic recovery from the effects of the coronavirus epidemic is also coming, but there is a separate planning phase.
This first 2.3 billion must be directed mainly at investments that promote the transition to a low-carbon economy. The Ministry of Finance estimates that this will cost more than a billion euros. Part of the funding will go to improving competitiveness. About 300 million has been set aside for a reduction in health care services caused by the coronavirus epidemic.
The EU has tentatively agreed to launch a € 750 billion corona virus pandemic recovery fund, which it will distribute in the form of grants and loans to member states. However, EU countries have stalled in controversy over whether countries that break the rule of law can also receive funding, which has delayed the finalization of the plan.
It is planned that Finland will receive an estimated EUR 2.3 billion from the EU’s recovery and adaptation framework in 2021–2023. In total, Finland can receive grants of about 3 billion euros.
At least 37% of the money must be spent on climate action and 20% on digitization. In addition, the Commission recommends that Finland invest in, among other things, employment, social and health services.
Lots of items
The government had no difficulty finding items that would require money. The Prime Minister’s Social Democratic Party has particularly emphasized the need to increase Finnish industry. The central party’s concern is that the investment will benefit the entire country. Reducing climate emissions has been a goal for the whole government and especially for the Greens.
Six sectors have been identified as receiving funding from the stimulus package.
These include increased support for education and research, reducing climate emissions, improving international competitiveness, promoting digitalisation and infrastructure, supporting the labor market, and improving access to social and health care.
Board decisions on specific projects will be made later.
Source: The Nordic Page