Government allocates EUR 289 million to support regional vitality, growth and defence projects

On 12 February 2026, the Government decided on the allocation of funds for 2026 under the EU’s Regional and Structural Policy Programme, ‘Innovation and Skills in Finland 2021–2027’, and on the allocation of funds from the 2021–2027 Interreg programmes.

Altogether, approximately EUR 280 million of ERDF, ESF+ and JTF funding was distributed to regional councils and Economic Development Centres. The Regional Council of Lapland and the Regional Council of Uusimaa received a total of EUR 8.8 million to finance Interreg programme projects.

Within the ‘Innovation and Skills in Finland’ programme, the EU’s ReArm Europe Plan will open up two completely new policy lines to support investments in the defence industry and the production of dual-use items. The aid will bolster Finland’s defence capability and security of supply.

“With the help of the EU’s new policy lines on regional development funding, we will be able to strengthen security of supply, improve military mobility and enhance the production capacity within Finland’s defence industry and dual-use items. As a result, we can more easily attract investments to the regions and create new jobs,” says Minister of Economic Affairs Sakari Puisto. The Government adopted the new objectives of the ReArm Europe Plan as part of the programme in October 2025.

Under the ‘Innovation and Skills in Finland’ programme, funding from the European Regional Development Fund (ERDF) is used, in addition to the opportunities offered by the new policy lines, for research and development activities, growth and competitiveness of SMEs, energy efficiency, climate change adaptation and the circular economy, and local transport projects in eastern and northern Finland. Meanwhile, the projects of the European Social Fund (ESF+) funded by the programme will support employment, education and the prevention of social exclusion. In the programming period 2021–2027, funding will be provided to projects of the Just Transition Fund (JTF) that strengthen biodiversity and help regions adapt economically and socially to changes in the energy sector.

The national performance targets for EU programme funding have been set in a way that ensure Finland can make full use of its funds. The use of funds must be targeted at economically, ecologically and socially sustainable growth. Funding decisions for the programme are made by the Economic Development Centres, regional councils and the Finnish Food Authority.

Inquiries:
Lotta Laitinen, Special Adviser to the Minister of Economic Affairs, tel. +358 295 049 058
Johanna Osenius, Director for Regional Development, Ministry of Economic Affairs and Employment, tel. +358 295 064 937
Päivi Poikola, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 278

The Ministry’s email addresses are in the format [email protected]