Legislation on regional development

Legislation on regional development and the European Union’s regional and structural policy was reformed and entered into force in autumn 2021.  

The Act on Regional Development and Implementation of the European Union’s Regional and Structural Policy (756/2021, so-called implementing act) governs regional development. It contains provisions on the objectives of regional development, the authorities and their tasks as well as on programme work and cooperation procedures. The Act also includes provisions on the drafting and administration of Finland’s regional and structural policy programme, as well as the administration of Interreg programmes and Interreg external border cooperation programmes. 

The Act on the Funding of Regional Development and the European Union’s Regional and Structural Policy Projects (757/2021, so-called funding act) lays down provisions on the following subsidies and the conditions for granting them:

1. subsidies granted by the Ministry of Economic Affairs and Employment and regional councils from the national regional development funds, 
2. subsidies granted by regional councils, ELY Centres and the Finnish Food Safety Authority from the funds of EU regional and structural policy programme, and
3. national counterpart funding under the Interreg programmes and the Interreg external border cooperation programmes.

The Act contains key provisions on application, granting, payment, supervision and recovery of subsidies. The Act also contains special provisions on the implementation of the EU’s regional and structural policy programme in 2021–2027, and provisions on the implementation of national counterpart funding for the Interreg programmes and the Interreg external border cooperation programmes in 2021–2027. Finally, the Act includes provisions on audits on the use of these programmes’ funds in the programming period 2021–2027.

National legislation

• Act on Regional Development and Implementation of the European Union’s Regional and Structural Policy (756/2021): 
• Act on the Funding of Regional Development and the European Union’s Regional and Structural Policy Projects (757/2021)
• Act on Discretionary Government Grants for the Development of Business Operations in 2021–2028 (758/2021)
• Government Decree on Regional Development and Implementation of the European Union’s Regional and Structural Policy (797/2021)
• Government Decree on the Eligibility of Costs Funded by the European Union’s Regional and Structural Policy Funds (866/2021)
• Government Decree on the Funding of Projects of Regional Development and the European Union’s Regional and Structural Policy (867/2021)
• Government Decree on the Entry into Force of the Act on Discretionary Government Grants for the Development of Business Operations in 2021–2028 (821/2021)
• Government Decree on the Subsidy Regions Referred to in the Act on Regional Development and Implementation of the European Union’s Regional and Structural Policy in 2021(795/2021)

EU legislation and guidelines

Along with national legislation, activities financed from the regional and structural policy funds are governed by EU regulations adopted for the programming period 2021–2027. In addition to the Common Provisions Regulation adopted by the European Parliament and the Council, fund-specific regulations have been issued on the European Social Fund Plus (ESF+), the European Regional Development Fund/Cohesion Fund (ERDF) and the Just Transition Fund (JTF) as well as a regulation on European territorial cooperation (Interreg). 

EU legislation

• Common Provisions Regulation (EU no 2021/1060)
• Regulation on Interreg (EU no 2021/1059)
• Regulation on the ERDF and Cohesion Fund (EU No 2021/1058)
• Regulation on the ESF+ (EU no 2021/1057) 
• Regulation on the JTF (EU no 2021/1056) 

Inquiries: johanna.osenius(at)gov.fi