The chairman of the large committee, Satu Hassi (green), hopes for a broader discussion on whether the EU can no longer respond to, for example, US subsidies with its current structure.
Brussels
Parliamentary the members of parliament sitting in the large committee have a squeamish attitude to the idea that EU member states could grant state aid to their companies more generously than before. The idea of a new EU fund is also not gaining traction.
Read more: The EU’s state aid reform is going in the wrong direction for Finland: “We are very worried”
This has been Finland’s long and reflexive line, but the EU is in transition as a result of Britain’s departure from the EU, the corona pandemic and the Russian attack.
The state aid reform and the sovereignty fund are in the EU’s plans on the basis that the EU must remain competitive when other countries, i.e. mainly the United States and China, support their own industry.
Chairman of the large committee dealing with EU affairs Fairy tale Hassi (Vihr) says that Finland should start a serious discussion about how the EU can meet the challenges with its current economic structure.
“First came the corona, then came the war, now there is the US Inflation Reduction Act [ilmastopaketti]. Now it has come to the point that the next development step must be taken in the EU.”
Fairy tale Hassi (green)
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“Easily labeled a spendthrift or unpatriotic.”
Hashish according to the EU, in the face of huge funding needs, it has developed various “leverage techniques”, for example funds outside the EU budget. However, there would clearly be a need for more permanent arrangements.
“I am not sure if there is political readiness for it and in what time frame the results could be obtained. In Finland, it is safest for a politician to argue that the same line as up to now will be continued. If you suggest something else, you’ll easily be labeled a money-spinner or unpatriotic.”
This season, the Commission has tried to develop taxes that go directly to the EU budget, including carbon duties. Hassi hopes that similar projects will go ahead.
Babble supports the basic principle that the EU should not start a race for state subsidies. Likewise, at this stage, he considers the government’s position that the EU should first look at its existing funds before setting up new ones reasonable.
“But when the United States has decided on such a large support package, Europe should also think about it. It is a real problem how the EU responds to it. Finding a balance is not easy.”
According to Hassi, the line is starting to change in Germany as well, which may also affect Finland’s thoughts.
The U.S. climate package IRA contains a total of 369 billion euros for actions to speed up the green transition.
A big one the vice-chairman of the committee Jani Mäkelän (ps) thinks that the issue of state subsidies is not simple. He says he leans towards a free market economy.
Jani Mäkelä (ps)
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“There is always a risk of corruption.”
“The market must operate as freely as possible without unnecessary government intervention,” he says.
“If state subsidies are allowed more freely, there is always a risk of corruption. Especially in Eastern Europe, there are state administrations where support can end up in the wrong pockets.”
According to Mäkelä, the other side of the matter is that the old industrialized countries Germany and France have always supported their own industry up to the amounts allowed by the EU, unlike Finland.
“Finland is already behind. It is not a simple equation if more state subsidies were to be allowed now.”
Mäkelä rejects the new sovereignty fund planned in the EU.
“I would be extremely surprised if Finland was paid anything for it. When money doesn’t grow on trees, at least I have an assumption that Finland would end up paying more in the fund than it would get.”
The coalition Anne-Mari Virolainen says that state subsidies are “a very precise place” for Finland.
Anne-Mari Virolainen (cook)
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“It shouldn’t be production support.”
“I am basically against protectionism. In the Yankees, it was practiced traditionally, it wasn’t Donald Trump’s an early invention. They want to keep the industry in the United States.”
According to Virolainen, Europe should take care of the competitiveness of industry while maintaining the relationship with the United States.
“If it is decided to give state aid, it should not be production aid, i.e. meant for building walls. But it could be support that increases the use of renewable energy and promotes low carbon.”
According to Virolainen, Finland’s tenet has been that the state does not choose winners.
“I oppose the Sovereignty Fund in principle. I’m a guest on new tools like this. We cannot repeat the discussion that was already held once about the EU’s recovery tool.”
A big one committee member Eveliina Heinäluoma (sd) considers ideas about increasing state subsidies and a possible fund to be worrying.
Eveliina Heinäluoma (sd)
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“A free, competitive market is the essence.”
“Now it seems that more permanent proposals are being put on the table. The loosening of government subsidies should be a temporary measure, and we should now return to normal as soon as possible. A free, competitive market is the core of the EU’s operation.”
Heinäluomak also emphasizes that the EU has enough existing tools, including a recovery and recovery support instrument of around 800 billion euros.
“Even then, it took time to get the countries’ plans together. Only 100 billion has been distributed for aid in the form of aid alone [euroa]when its share is 390 billion [euroa]. New tools and funds often have the downside that they cannot be implemented quickly.”
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