Finland’s plan will be officially approved on Friday. After that, Finland will have access to the first tranche of its recovery package, EUR 271 million.
European On Thursday, the Union’s finance ministers approved the recovery and recovery plans of Finland, Estonia and Romania in a video conference.
The final seal of the plans will be issued on Friday in the written procedure of the member states, after which Finland will receive its first installment from the EU.
The Treasury minister Annika Saarikon According to (Central), Finland received special praise for the fact that more than half of the recovery money is spent on various green transition projects. The goal set by the EU for the member states is to spend at least 37% of the money received by each country on the green transition.
According to Saarikko, Finland also made recommendations to each country in advance on what each country should focus on in its plans, and Finland also praised the implementation of these country-specific recommendations.
Saarikon According to the report, the impact of recovery money on Finland’s gross domestic product is 0.1–0.2 percentage points.
“That is, the level that we will get higher in GDP than we would get without this package,” Saarikko said at the press conference.
The EU impact assessment was higher, 0.4-0.6 percentage points. According to Saarikko, the difference is due to the fact that the Commission also includes the spillover effect that may arise for Finland as the entire EU territory recovers.
“Calling this a stimulus package is not realistic, the economy does not need a recovery right now, but these measures will structurally reform the economy to be more sustainable,” Saarikko said.
“This is to address a concern that is already reflected in economic forecasts from 2023 onwards: economic growth is slowing down too fast.”
EU the commission discussed Finland’s plan on 4 October and gave a favorable assessment.
Read more: Finland’s climate plan for the recovery package is praised by the Commission: “One of the best we’ve seen”
So it was the turn of the member states.
The implementation decision to be adopted on Friday includes, among other things, milestones and targets to monitor the implementation of Finland’s plan.
In the first tranche, Finland will receive 13 per cent of the plan’s EU funding, ie EUR 271 million.
Finland’s total share of the EU’s recovery package is EUR 2.1 billion. The final yield will be confirmed next summer.
“So it has been a very large financial decision,” Saarikko said.
Finland’s contribution to the recovery and recovery instrument is EUR 6.6 billion.
Finland spend more than half of the recovery money on various green transition projects. These include the re-use of various materials and industrial by-products, financial support for the replacement of oil heating systems, various recycling projects and the construction of charging infrastructure.
Another focus of the recovery instrument in Finland is digitalisation, many of whose projects are related to the digitalisation of public functions and services.
According to Saarikko, the money will be used, among other things, for the digitalisation of money laundering prevention and the development of an apartment information system. The digitalisation of railways is also progressing.
Finland also uses the money to reform social and health services and to discharge care debt.
Parliament has already adopted in May this year ‘s third supplementary budget, which outlines the use of recovery funding this year.
“The first money has been issued in it, and now it is as if Finland is getting that money back from the EU,” Saarikko explained.
The first project applications are already underway.
According to Saarikko, the biggest investments will be made next year and the following year. Next year’s funding is already included in the government’s draft budget for next year.
EU countries will agree on a € 750 billion recovery and recovery facility in summer 2020.
.
#finance #ministers #give #green #light #Finlands #recovery #plan
