Support areas

Labour and other resources are unevenly distributed and for this reason there are differences in business opportunities between regions. The Government may designate least developed areas as support areas. Enterprises may receive higher aid for investments in the support areas than elsewhere in Finland. The aid is provided by ELY Centres.

The support areas are designated on the basis of the criteria laid down by the EU. Population density, GDP, unemployment rate and specific geographical features are used as the main criteria.

Support areas and aid levels 2014 - 2020

The major region of Eastern and Northern Finland is a support area on account of low population density. It comprises the regions of South Savo, North Savo, North Karelia, Kainuu, Central Ostrobothnia, Northern Ostrobothnia and Lapland.

In accordance with the population share laid down for each Member State by the European Commission, the population of the support areas in the rest of Finland may total about 100,000.

This aid is channelled as aid for areas of abrupt structural change. In these areas there is a need for higher aid for SMEs and support schemes for large enterprises are also required. At the proposal of Finland, the European Commission has designated the following municipalities as support areas: Salo, Somero, Viitasaari, Pihtipudas, Äänekoski and Konnevesi.

Eastern and Northern Finland comprise support area I where the aid levels are highest. Support area II comprises the municipalities of Salo, Somero, Viitasaari, Pihtipudas, Äänekoski and Konnevesi. The rest of Finland belongs to support area III where the aid levels are lowest and large enterprises are not eligible for any aid.

Maximum investment aid levels 2014-2020

Support area I

(Eastern and Northern Finland)
Large enterprises                  15% 
Medium-sized enterprises    25%
Small enterprises                  35%

Support area II

(Salo sub-region, Viitasaari-Pihtipudas, Äänekoski sub-region)
Large enterprises                  10%
Medium-sized enterprises    20%
Small enterprises                  30%

Support area III

(Rest of Finland)
Large enterprises                   -   
Medium-sized enterprises     10%
Small enterprises                   20%

Further information hanna-maria.urjankangas(at)tem.fi