Finland announces a EUR 300 million package to support agri-food production

The ’s ministerial preparedness working group has drawn up a € 300 million support package for the agricultural sector to prevent food supply disruptions caused by the ongoing conflict in , Minister of Finance Saarikko said Thursday.

Speaking to the press, Saarikko stated that the purpose of the package is to combat the effects of rising prices in the sector and at the same time ensure uninterrupted food production in the country.

The ministerial group, set up last week, met for the first time on Thursday. Its primary objective is to assess the impact of the war on Finland, especially in terms of the and of supply, ie the supply of essential goods such as food, and electricity.

The group is also responsible for drawing up a plan to prevent disruptions to Finland’s security of supply and to allocate resources accordingly.

The government could increase agricultural subsidies, lower taxes

"We have decided to provide EUR 300 million in emergency state aid to food producers and Finnish farms," Saarikko said, adding that this is the first support package the group has completed and more are expected for the future.

"We have been looking for ways to guarantee strong self-sufficiency and domestic food production in Finland as quickly and efficiently as possible," the minister added.

However, it will remain unclear how the package will be implemented, as Saarikko is proposing an increase in agricultural subsidies and a reduction in taxes as the best way to support farmers.

Saarikko further stated that in addition to the , the Finnish agricultural sector has been hit by one of the worst harvests for several years, as well as the constant rise in prices.

He emphasized that state aid alone was not enough to boost industrial recovery and stressed how traders, manufacturers, banks and consumers could be involved in supporting domestic food production.

Next is the energy support package

The government is also preparing a plan to improve Finland’s energy self-sufficiency.

According to Saarikko, the ministerial group will meet next week to decide on the second support package. The package focuses primarily on ensuring the short-term availability of fuel for key services such as heat and electricity generation and the transport sector.

"Particular emphasis will be placed on ending dependence on ," The archipelago pointed out.

The government is working to accelerate the transition from fossil fuels to renewable energy sources.

The plan is said to include measures to increase domestic energy production, support the use of new technologies to replace fossil fuels, strengthen gas availability and improve energy efficiency.

Source: The Nordic Page

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