• Fri. Jun 14th, 2024

Finland and the EU Adopt Temporary Stance on State Aid Competition Amid Growing Demand for Green Investments

BySamantha Jones

Mar 27, 2024
France’s nearly one billion euro state aid program approved by EU Commission

The Finnish government has adopted a temporary stance on the EU’s crisis aid, with the European Commission proposing a joint financial instrument as a potential solution to state aid competition. On Wednesday, the European Commission approved a 900 million euro French state aid program to support companies investing in biomass and renewable hydrogen for energy and fuel production, which falls under the crisis and transition period state support framework.

The EU has relaxed its state aid rules temporarily, with crisis flexibilities valid until June 30th and transitional period flexibilities valid until the end of 2025. The French program provides direct grants to cover eligible investment costs, supporting the move towards a zero-emissions economy while ensuring fair competition opportunities in the internal market.

Former Prime Minister of Italy Enrico Letta is set to report to the European Council on the future of the internal market at an extraordinary summit in April. The Finnish Confederation of Business and Industry (EK) has called for new tools to compete for green and digital investments, suggesting tax incentives as an option. EK hopes that Finland will take a position on how the EU can attract strategic investments in the future.

Flexibilities in state aid rules have been extended after 2022 to support green initiatives and renewable energy projects with subsidies available. EK CEO Jyri Häkämies has suggested forming a financial instrument within the EU as a better option than tough competition for state aid to improve Europe’s investment competitiveness.

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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