Finnish Government and the EU: Balancing Temporary State Aid with Competitive Future Investments

France’s nearly one billion euro state aid program gains approval from the EU Commission

The Finnish government has maintained that the European Union’s crisis aid should only be a temporary solution. In response, the European Commission suggested a joint financial instrument of the EU as an alternative to state aid competition. Recently, the Commission approved a 900 million euro French state aid program to support companies investing in renewable energy sources, which falls under the crisis and transition period state support framework. This framework has temporarily relaxed state aid rules until 2025.

The French government plans to provide direct grants covering part of investment costs to eligible companies in order to promote a zero-emissions economy while ensuring fair competition in the EU internal market. Earlier this year, the Commission approved 902 million euros in government support for a battery factory in Germany, highlighting the importance of subsidies in attracting investments.

The Finnish government has emphasized the need for temporary crisis aid to avoid distorting competition and weakening the internal market. Discussions on the future of the internal market are ongoing, with a focus on competitiveness and attracting green and digital investments. The Finnish Confederation of Business and Industry has called for new tools to enhance Finland’s competitive position at the EU level, including tax incentives and new investment instruments.

Looking ahead, discussions on strengthening Finland’s competitive position will continue, with a proposed tax relief or exemption model expected to attract foreign investments. The European Council is expected to address these issues at an extraordinary summit in April, aiming to secure strategic investments for the future. The EU’s state aid rules have been extended multiple times with a focus on promoting green technologies and transition to renewable energy sources. Former Prime Minister of Italy Enrico Letta is currently reporting to the European Council on

The Finnish government has maintained that the European Union’s crisis aid should only be a temporary solution. In response, the European Commission suggested a joint financial instrument of the EU as an alternative to state aid competition. Recently, the Commission approved a 900 million euro French state aid program to support companies investing in renewable…

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