Summary:
The Ministry for Foreign Affairs of Finland has warned the Finnish business life of a hard Brexit. Terhi Bunders, a Brexit contact person at the Ministry, says that they aim to raise awareness of all alternatives.

Jussi Mustonen of Confederation of Finnish Industries EK points out that the impact of soft Brexit on Finland’s gross domestic product is approximately 0.1-0.2% while in a hard Brexit, the GDP could be cut by 0.3%. According to Mr Mustonen, it would not make Finland fall, but it is awkward and harmful to Finland’s economy.

Juha Kilponen of the Bank of Finland adds that even if there were major problems with trade after Brexit, it would not be a blow to Finland, because only 5% of Finnish export goes to the UK. If uncertainty over the Brexit agreement persists, it could cause problems if it affected the financial markets. An uncontrolled Brexit would also weaken Finland’s growth outlook.

In Finland, particularly the forest industry is worried about Brexit. The industry fears that tariffs will significantly rise from the current zero. However, based on the most recent information, paper, cardboard and pulp would avoid tariffs even if there was no deal on Brexit.

The uncertainty over Brexit is however already affecting some businesses, such as the health technology sector. For example Planmeca, which has noticed a decline in demand, is following the Brexit negotiations with concern.

Media:  Ilkka , YLE Uutiset
Date: 2.10.2018
Journalist: –
Main source: Terhi Bunders, Jussi Mustonen, Juha Kilponen

Summary:
The European Commission has released more specific proposals for the European Union’s 2021–2027 budget term. According to the Commission’s figures, Finland’s regional aid funds would grow by 20% from €1.5bn to €1.8bn. Eastern European countries will see budget cuts worth €37bn.

According to Vice-President Jyrki Katainen and Commissioner Corina Crețu, many factors impact the distribution of funds: youth unemployment, education level, migration, and carbon dioxide emissions.

Minister of Economic Affairs Mika Lintilä and Kari Aalto, Director of the East and North Finland EU Office, were happy with the Commission’s proposals.

Also Prime Minister Juha Sipilä was happy with the European Commission’s proposal regarding Finland’s cohesion funds. The Commission would give Finland cohesion funds worth €1.6bn in the next budget term. Finland and Greece are the only old member states whose funds will increase. Prime Minister Sipilä said the Commission has understood the special circumstances of Finland. It has been important for Finland that dispersed settlement will remain as one of the criteria for receiving funding.

Cohesion funds will be allocated worth €373bn. The European Parliament has accused the Commission for distorting the numbers and maintains that the cuts to the cohesion funds will be larger than stated.

Vice-Chair of the Budget Committee, MEP Petri Sarvamaa (EPP) voiced his disappointment over the Commission’s earlier proposals on Tuesday, saying that in practice, the proposed budget is smaller than the current financial framework which is incomprehensible in Europe’s current situation. MEP Nils Torvalds (ALDE) commented that the Commission looks at regions, not at countries when it grants the subsidies. « Finland is the last of the most developed countries in the EU which actually receives money, because the country is large but sparsely populated. Many municipalities in Eastern Finland struggle with poor economy, » he said.

Media:  Helsingin Sanomat, Maaseudun Tulevaisuus, Vasabladet
Date: 30.5.2018
Journalist: Maria Pohjala
Main source: Prime Minister Juha Sipilä

Summary:
Finland’s government outlined in October that Finland emphasises market discipline and member states’ own responsibility in the development of EMU. Finland does not support reforms that increase joint liability of member states, the government stated. Taneli Lahti of the Federation of Finnish Industries says that when looking at the euro area, Finland is in the minority with its opinion, Verkkouutiset reports. Mr Lahti thinks that the majority of euro member states support some kind of a cyclical adjustment mechanism. The European Commission publishes its proposals on EMU’s future on 6 December. Mr Lahti thinks the Commission could propose a cyclical adjustment mechanism or euro area’s own budget. « During the next weeks or months, EMU will start moving ahead, » Mr Lahti says.

Media:  Verkkouutiset / Nykypäivä
Date: 29.11.2017
Journalist: Sami Metelinen
Main source: Taneli Lahti

Summary:
The export of goods grew in Finland in August. The growth in car export was strong, while in machines and devices, forest industry products and metals the growth was slower. The value of goods export was slightly over EUR 4.7 billion in August, up 18% from a year earlier. Import was valued at EUR 4.9 billion, rising 9% from 2016. Still, there was EUR 150 million deficit in trade balance in August, and EUR 1.4 billion in January-August.

Media:  Helsingin Sanomat
Date: 9.10.2017
Journalist: Heikki Arola
Main source: –

Summary:
Aamulehti writes that during the last year, the European Commission has taken a number of legislative initiatives on energy and climate policy. For Finland, there are many challenges from the perspective of economic growth and climate goals, as the Commission’s proposals are not in line with one another or with Finland’s goals. The means proposed to combat climate change do not take into account the specifics of Finland’s forestry objectives. The EU has no formal competence in the forest policies of the Member States, but in practice, the situation seems to be different. Finland has for a long time been planning to increase the use of wood, but the Commission’s proposals on forest use hinder these efforts.

Media:  Aamulehti
Date: 17.7.2017
Journalist: Pekka Karhunen
Main source: –

Summary:
The National Coalition Party intends to present mandatory electric car charging points at highway service stations in the autumn when budget talks start. According to Foreign Trade and Development Minister Kai Mykkänen, one charging station would cost about EUR 20 000. He estimates that, as a whole, the reform would cost the state at maximum EUR 5 million. The government is committed to reducing greenhouse gas emissions by 2030 by half of the 2005 level. As part of the climate target, the government wants to increase the number of electric cars. This would also require a comprehensive charging network. « Finland could be the country that would first advance its fast-charging network so that service stations along the highways would always have an obligation to provide quick charging, » Mykkänen tells Helsingin Sanomat.

Media:  Demokraatti.fi
Date: 14.7.2017
Journalist: –
Main source: Kai Mykkänen/ foreign trade minister

Summary:
Finland is in third place in the latest annual European Innovation Scoreboard published by the European Commission on 20 June. Sweden and Denmark top the list. Finland places first in the finance and support innovation areas. Compared to 2010, Finland’s innovation performance has, however, weakened.

Media:  Verkkouutiset / Nykypäivä
Date: 20.6.2017
Journalist: Heikki Jantunen
Main source: –

Summary:
Economists celebrated the Statistics Finland’s latest figures regarding the Finnish economy on Thursday. GDP reached 2.7 per cent in the first quarter of the year when compared to Q1 in 2016. The figure was 1.2 per cent when compared to Q4 in 2016. Aki Kangasharju, chief economist at Nordea, tweeted that we have seen the miracle of the Finnish economy growing faster than the Swedish one now. Torbjörn Isaksson, chief analyst at Nordea Markets Sweden, also commented on the subject on Twitter. He was happy about the Finnish economy finally growing and mentioned that the gap between the two countries is not increasing any more. Pasi Sorjonen, chief analyst at Nordea Finland, tweeted back to Mr Isaksson that the gap is something many would like to forget.

Media:  Taloussanomat / Ilta-Sanomat
Date: 1.6.2017
Journalist: –
Main source: –