Six areas receive Ministry funding to manage structural change
On 8 December 2023, the Ministry of Economic Affairs and Employment decided to grant a total of EUR 825,000 in coordination funding to six areas to manage structural change and to strengthen their vitality.
The sudden structural changes in these areas are caused by higher interest rates and prices and changes in consumer behaviour, which have negatively affected the construction and forest industry sectors in particular. Russia’s invasion of Ukraine and its ramifications for many sectors, such as tourism, industry and logistics, also put pressure on the areas.
Several locally significant employers have had to adjust their operations, which in turn has affected regional economies and employment.
The Ministry granted coordination funding to six areas based on applications and action plans:
• Forssa sub-regional unit EUR 200,000
• Imatra sub-regional unit EUR 100,000
• Kauhajoki EUR 150,000
• Lieksa EUR 150,000
• Pyhäntä EUR 125,000
• Utsjoki EUR 100,000
The amount of funding granted totalled EUR 825,000.
Operating model for a sudden local structural change
A sudden local structural change refers to an abrupt and unforeseeable situation that does not meet the criteria of an actual and extensive sudden structural change, but that nonetheless causes a local crisis for business, labour market and employment.
The operating model for a sudden local structural change is based on regional cooperation. In the operating model, the Centre for Economic Development, Transport and the Environment (ELY Centre) convenes a regional coordination group with which it prepares a qualitative situation analysis, a statistical evaluation and a preliminary proposal for measures. Coordination funding granted on the basis of applications may not exceed 80 per cent of the cost of the project.
Coordination funding will fund measures related to the promotion of new jobs and investments, for example. In addition, it can be used to improve the industrial operating environment and to develop regional business and industry and companies operating in the area so that they can adopt new and more sustainable practices, for instance.
Inquiries:
Nea Lyytikäinen, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 246
Marjukka Aarnio, Senior Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 295 047 150