- European Commission has approved a € 500 million program to support Finnish companies
- The scheme allows qualifying beneficiaries to receive limited financial assistance in the form of direct grants, equity, tax and payment benefits, repayable advances, loans, guarantees
- Finnish economy is expected to grow by 2.0 percent, and by 0.6 percent in 2023
- European Commissions support to Finnish companies will help in providing much needed support to Finnish economy
The European Commission has approved a € 500 million program to support Finnish companies impacted by Russia’s invasion of Ukraine. This scheme was approved under the framework of a temporary crisis of state aid adopted by the Commission on March 23, 2022.
A €500 million scheme to support finish companies in the context of Russia’s invasion of Ukraine was notified by Finland to the European Commission. The support will be open to all the companies which have been impacted by current geopolitical instability and crisis. The includes the companies impacted by the Sanctions. However, scheme does not include companies operating agricultural, aquaculture, financials and fisheries sectors.
The scheme allows qualifying beneficiaries to receive limited financial assistance in the form of direct grants, equity, tax and payment benefits, repayable advances, loans, guarantees. The Commission determined that the Finnish programme complies with the Temporary Crisis Framework’s requirements. The help will, in particular, I not exceed €400,000 per beneficiary; and will be given no later than December 31, 2022.
Margrethe Vestager, the Executive Vice-President in charge of competition policy, stated that financial assistance will help Finland in assisting businesses in all sectors that have been impacted by the current crisis and the imposed sanctions. Margrethe Vestager emphasised that This is a critical step in reducing the economic consequences of Putin’s war on Ukraine. The EU will continue to work closely with Member States to ensure that national support measures are implemented in a timely, coordinated, and effective manner while maintaining the Single Market’s level playing field.
“This is an important step to mitigate the economic impact of Putin’s war against Ukraine”
The State Assistance Temporary Crisis Framework was adopted by the Commission on March 23, 2022, to allow Member States to utilise the flexibility provided by State aid regulations to support the economy in the aftermath of Russia’s invasion of Ukraine.
Further EU is also keeping a watch on the fraud in expenditure. The EUAntiFraud report for this year reveals developing fraud tendencies across a wide variety of topics, with case studies of investigations and operations fighting fraud against EU expenditure and revenue. According to the European Anti-Fraud Office, nearly €500 million will be recovered for the EU budget.
OP Financial Group is one of Finland’s largest financial institutions. According to the group economic outlook, in 2022, the Finnish economy is expected to grow by 2.0 percent, and by 0.6 percent in 2023. While the recovery of exports and service consumption from the coronavirus epidemic will sustain economic development, it will eventually slow as a result of growing inflation. Consumer prices are expected to rise by 5.4 percent in 2022 and 2.8 percent in 2023, according to the financial organisation.
The war has had an influence on Finland’s economy. Finland’s exports to Russia have plummeted, while the cost of various raw materials and capital products has risen. European Commissions € 500 million program to support Finnish companies impacted by Russia’s invasion of Ukraine will help in providing much needed support to Finnish economy.