Draft act on the State’s new capital investment company sent out for comments

The Ministry of Economic Affairs and Employment will organise a consultation round on the draft act on the new state capital investment company from 10 April to 8 May 2024. The new company will be given an industrial policy task with a stronger focus on economic growth, renewal and promotion of investments. ä.

The Government proposal would amend the Act on Finnish Industry Investment Oy and the Act on Climate Fund Oy. The Act on Business Finland Venture Capital Oy would be repealed. As a result of the arrangement, four companies will form Finnish Industry Investment Ltd, which will operate on market terms. The company’s subsidiary Teollisuustuki Oy will provide state aid funding.

The merger aims to boost company growth, improve the effectiveness of industrial and business policy and create synergies. The Government also seeks to make the most efficient use of its limited resources.

The new company will be given an industrial policy task with a stronger focus on economic growth, renewal and promotion of investments. Another aim is to advance investments and exports related to the opportunities created by new technologies and the clean transition.

The Ministry also examined whether the Finnish Fund for Industrial Cooperation (Finnfund) could be incorporated into the new entity. The draft act does not propose that Finnfund be merged with the new Finnish Industry Investment. 

Finnish Industry Investment to remain a market-based company

The principle of the draft act is that Finnish Industry Investment will, as a rule, be a public capital investment company operating on market terms and guided by market practices and commercial profitability.

Another major principle is that correcting market failures and possibly also evening out cyclical fluctuations will play an important role in the company’s activities. When a certain part of the market starts to operate sufficiently well with private financing, the company will withdraw from the market.

Aim is to submit government proposal in June

After the amendments made based on the consultation round, the Finnish Council of Regulatory Impact Analysis will assess the proposal. The Government plans to submit its proposal on a new capital investment company to Parliament in June 2024. The company will start operations on 1 January 2025. 

The reform is part of the Programme of Prime Minister Petteri Orpo’s Government. 

Inquiries: 
Lassi Noponen, Special Adviser to the Minister of Economic Affairs, tel. +358 50 407 6033
Mikko Huuskonen, Senior Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 29 506 3732