European Union Etla: The money in the EU corona revitalization package is being distributed in Finland in too fragmented destinations

According to the Business Research Institute, the EU Recovery Instrument should promote, in particular, the green transition, digitalisation and research.

Business research institute Etla criticizes Finland’s green growth program, ie the government’s plan for how the money allocated to Finland from the EU’s corona recovery package will be used.

According to Etla, the program seeks to promote such a wide range of different projects that their effectiveness threatens to disappear, although the goal itself must be supported.

The program aims to strengthen the short-term economic recovery, the reform of business structures and public services, and productivity growth.

As a criterion According to the government, the choice of expenditure items should focus on large and impressive entities, but Etla believes that the expenditure is divided into rather small parts.

“Both the number of priorities and the measures supporting them should be reduced in the program as a whole,” Etla states in a statement to the Parliament’s Finance Committee.

The program will increase public spending on both the EU’s digitalisation and green transition and the prime minister Sanna Marinin (sd) the objectives of the government program.

Etlan According to the Commission, the allocation of funds from the EU’s Recovery and Recovery Instrument should give greater priority to actions that bring added value at EU level.

According to Etla, supporting the green transition, digitalisation and research and development are areas where EU-level added value could be created.

Instead, the functioning of the labor market and access to social and health services should be developed through national programs and funds.

Specially Accelerating the green transition would be particularly important for Finland’s and the EU’s carbon neutrality goal and the competitiveness of green technology, Etla estimates.

According to Etla, there is an obvious risk that the temporary support instrument will increase public spending on a large-scale and permanent basis without a clear growth impact.

HS recently reported that Finland had to get EU recovery package EUR 3.2 billion, but according to a recent estimate, there will be half a billion euros less to come.

The decrease is due to the fact that the Finnish economy has suffered less than previously expected from the coronavirus pandemic. The ministerial working group will now have to adjust the plan for the use of grant funds.

Finland’s estimated contribution to the recovery package is still around EUR 6.6 billion.

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