Government appoints working group to renew corporate subsidies

Ministry of Economic Affairs and Employment 28.9.2017 14.13 | Published in English on 4.10.2017 at 18.56
Press release
Government appoints working group to renew corporate subsidies

The Finnish Government has appointed a working group to create a roadmap for the reform of corporate subsidies. The work will be based on earlier studies on corporate subsidies, including tax credits, carried out by the Ministry of Employment and the Economy as well as on other available research data. The position of internationally competitive lines of business will also be assessed in the process.

The roadmap will provide a commonly accepted long-term plan for a corporate subsidy system which is explicit, promotes the regeneration and productivity of businesses, is cost-effective for the public economy and takes into account the goals of the energy and climate strategy.

The process will consist of two phases. In the first phase, by 15 December 2017 the working group will list the current subsidies that should be reduced. In the second phase, the working group will list the general principles of how to redirect the resulting funds for the development of the corporate subsidy system. The new system is expected to take effect gradually between 2019 and 2023.

While the idea of the roadmap is to shift the focus onto the support of long-term productivity of businesses and industries, alternative ways of achieving the goals will also be studied.

Working group members

Mika Lintilä, Minister of Economic Affairs, Ministry of Employment and the Economy (Chair)
Hanna Sarkkinen, MP, Left Alliance Parliamentary Group
Kaj Turunen, MP, Blue Reform Parliamentary Group
Teuvo Hakkarainen, MP, Finns Party Parliamentary Group
Peter Östman, MP, Christian Democratic Parliamentary Group
Harri Jaskari, MP, National Coalition Party Parliamentary Group
Mauri Pekkarinen, MP, Centre Party Parliamentary Group
Lauri Ihalainen, MP, Social Democratic Parliamentary Group
Emma Kari, MP, Green Parliamentary Group
Mats Nylund, MP, Swedish Parliamentary Group
Terhi Järvikare, Director General, Ministry of Finance (Secretary-General)
Ilona Lundström, Director General, Ministry of Employment and the Economy (Secretary-General)
Sanna Ruuskanen, Director of Unit, Ministry of Transport and Communications
Marja Hilska-Aaltonen, Senior Adviser for Forestry, Ministry of Agriculture and Forestry

Permanent experts:

Mika Kuismanen, Chief Economist, The Federation of Finnish Enterprises
Jouni Hakala, Director, Confederation of Finnish Industries
Marko Mäki-Hakola, Director of Business Development, The Central Union of Agricultural Producers and Forest Owners
Jouni Punnonen, Energy Director, Finnish Forest Industries Federation
Pia Björkbacka, International Adviser, Central Organisation of Finnish Trade Unions, SAK (representing SAK, STTK and Akava)
Anni Huhtala, Director General, VATT Institute for Economic Research

The term of office of the working group is from 1 October 2017 to 28 February 2018.

Inquiries:
Olli Koski, Director, Ministry of Employment and the Economy, tel. +358 50 541 9645