NordenBladet — The Government submitted its budget proposal for 2022 to Parliament on 27 September. The proposed appropriations for the administrative branch of the Ministry of Education and Culture total EUR 7.41 million. Next year’s budget will continue to focus on improving quality and equity in education and on safeguarding funding for science and research. Funds will also be allocated for rebuilding the cultural sector in the wake of the coronavirus pandemic.Work to strengthen quality and equity in early childhood education and care and in primary, lower secondary and upper secondary education will continue in 2022. A total of EUR 80 million is proposed for an action plan for quality and equity in early childhood education and care  and EUR 60 million for an action plan for quality and equity in primary and lower secondary education. It is proposed that EUR 10 million be allocated in 2022 towards a quality and accessibility programme for general upper secondary education. Efforts to strengthen student welfare services in primary, lower secondary and upper secondary education will continue. It is proposed that the funding allocated to these services be increased to EUR 20 million in 2022. “We will continue to work resolutely to ensure that each child’s neighbourhood school remains among the world’s best schools. One of our priorities is also to ensure that children and young people get all the support they need at school on time,” says Minister of Education Li Andersson.Altogether EUR 65 million will be allocated for continuing the extension of compulsory education and the implementation of upper secondary education that is free of charge. A total of EUR 70 million in additional funds is proposed for recruiting teachers and instructors in vocational education and training. In addition, full index adjustments will be made for all levels of education. “Everyone needs high-quality upper secondary education to cope in today’s society. By extending compulsory education it is possible to improve young people’s networks and obligate the society to walk alongside them throughout upper secondary,” says Minister Li Andersson.Funding level for science and research secured and skilled labour immigration facilitatedThe level of funding for science and research will be secured in 2022 too. The budget authority of the Academy of Finland for research projects in 2022 amounts to EUR 390.5 million, including a supplementary budget authority of EUR 40 million for 2022 decided in the government budget session and an addition to the budget authority of EUR 40.5 million in line with the Sustainable Growth Programme. The level of the authority for 2023 will be decided in the government discussion on spending limits in spring 2022. A total of EUR 15 million is proposed in Recovery and Resilience Plan funds for new student places in higher education institutions. Based on a contribution from the Finnish Innovation Fund Sitra, universities will be capitalised with EUR 67 million in 2022. The capitalisation will be implemented on the basis of universities’ acquisition of funds.The conditions for employment among young people would be improved by temporarily raising the income thresholds for student financial aid for 2022. “The economy is growing fast and many companies are suffering from a shortage of skilled labour. Raising the income limits for student financial aid is one quick way of fixing the situation. Finland can succeed only if we have competent people who explore and create innovations. This is why it is important that the Government is committed to securing funding for higher education and science next year, ” says Minister of Science and Culture Antti Kurvinen.Altogether EUR 330 million is proposed in 2022 for compensating beneficiaries for the proceeds from gambling activities. The compensation for the reduction in the fall in proceeds is EUR 174 million in 2022 for the administrative branch of the Ministry of Education and Culture. The Government has launched parliamentary preparations for organising gambling activities as of 2024. The preparatory work will be completed by the end of 2021 and the decisions are to be made in the government session on spending limits in spring 2022.Support for culture and the creative industriesIn line with the Sustainable Growth Programme, EUR 14 million is proposed for enhancing production and operating models in the cultural and creative sectors. As part of the Government’s future-oriented investments, EUR 7.5 million would be allocated towards the capitalisation of a fund to support the creative industries as well as cultural activities. The rest of the funding reserved for the capitalisation will be decided in future budget processes.It is proposed that EUR 11 million be allocated for compensating for the reproduction of works for private use, which helps secure the financial support that Kopiosto and the Promotion Centre for Audiovisual Culture (AVEK) provide for the creative industries and culture. The exhibition payment model for artists will receive further funding. Next year, the Government has also pledged to reimburse reasonable additional costs arising from appeals involving the renovation and modernisation project of the Finnish National Theatre.“The cultural sector creates jobs and brings vitality everywhere in Finland. It is important in the wake of the coronavirus pandemic to fuel reconstruction in this sector with the help of the recovery package and the new fund. Another essential issue is the sources of income for those in the cultural industries. In this respect, both securing the compensation level for the reproduction of works for private use and ensuring further funding for the exhibition payment model are very positive decisions, ” Minister Kurvinen says.

Source: Valtioneuvosto.fi

NordenBladet — The Government proposes amendments to the Trade Register Act and Business Information Act that aim to facilitate the movement of information between authorities in different EU Member States. The proposed amendments are related to the implementation of the Digitalisation Directive concerning Business Registers and of the Anti-Money Laundering Directive.On 27 September 2021, the Government submitted a proposal to Parliament on amendments to the Trade Register Act and the Business Information Act. The proposed amendments will have concrete impacts on the activities of the Finnish Patent and Registration Office or, in particular, on the Trade Register maintained by the Patent and Registration Office. The legislative amendments will enter into force on 1 August 2022. They do not have any major impacts on businesses.The Digitalisation Directive requires that it must be possible to establish and register a limited liability company in any EU Member State electronically. Similarly, the registration of a branch of a limited liability company electronically must be possible in any EU country. A notification of the establishment of a limited liability company that is submitted electronically should be processed within five working days.The proposal facilitates the movement of information in the registers between the registration authorities of different EU Member States. For example, information on any changes to the persons in charge of a limited liability company will also move to the country where a registered branch of the limited liability company operates. The promotion of electronic services in general facilitates the submission of notifications, speeds up their processing, reduces costs and improves enterprise security. The Anti-Money Laundering Directive of the EU aims to prevent the use of the financial system for the purposes of money laundering or terrorist financing. In Finland the Patent and Registration Office is responsible for registering and updating information concerning the beneficial owners of companies to the Finnish Trade Register. The Anti-Money Laundering Directive requires that information on beneficial owners must be more readily accessible between different Member States. The implementation of the Digitalisation Directive will also have impacts on the budget for 2022. As the Directive requires that the majority of the information of limited liability companies entered in the Trade Register must free of charge to users, half a million euros in compensation will be paid to the Finnish Patent and Registration Office in 2022. 

Source: Valtioneuvosto.fi

NordenBladet — The Government has submitted its budget proposal for 2022 to Parliament.In the budget proposal, the appropriations proposed amount to EUR 64.8 billion and revenue is estimated at EUR 57.9 billion. The budget proposal shows a deficit of EUR 6.9 billion. The main contents of the proposal are summarised in the Ministry of Finance’s Budget Review.

Source: Valtioneuvosto.fi

NordenBladet — The Finnish economy will continue to grow at a rate of 2.9% in 2022 following recovery from the COVID-19 pandemic, estimates the Ministry of Finance in its Economic Survey published on 27 September.The economy has been recovering rapidly from the COVID-19 pandemic since spring this year. The growth spurt was triggered by the release of pent-up demand in a situation where the vaccination programme is progressing rapidly, restrictions on business activities are eased, and both households and companies are optimistic about the future.Economic recovery will continue in the autumn, especially in the sectors that are currently subject to COVID-19 restrictions. As a result, economic growth will remain strong during the second half of the year and will continue in 2022. Gross domestic product (GDP) is forecast to grow by 3.3% this year, by 2.9% in 2022 and by 1.4% in 2023.  In the forecast, economic recovery is not expected to slow down in the event of potential deterioration of the COVID-19 situation, even if the re-opening of society was slower than anticipated in the summer forecast. Uncertainties arising from the COVID-19 scenarios, virus mutations and vaccination coverage add to the uncertainty of the forecast.The imbalance in general government finances will narrow this year and next as the economy grows rapidly and the expenditure needs arising from the epidemic decrease. However, general government finances will still remain in deficit after a short period of economic upturn. “The upturn is part of the natural economic cycle following a dramatic blow and recovery from it. In the longer term, it is essential to use structural policy instruments to support employment, investments, productivity, competitiveness and stable public finances,” says Mikko Spolander, Director General of the Budget Department of the Ministry of Finance.Global economy will continue on a rapid growth pathHelped by fiscal stimulus, release of pent-up consumption demand and progress in vaccinations, the global economy will recover rapidly from the COVID-19 pandemic. Rapid growth will continue in the euro area as the restrictions are eased and the demand for services is increasing. In the United States, strong stimulus measures have led to a rapid increase in private consumption.The quick recovery in world goods trade can be largely attributed to last year’s low reference level. However, trade is hampered by a shortage of industrial components and problems with container transport logistics, which has resulted in temporary supply shortage and price increases. Rapid growth in investments throughout the forecast periodGDP growth is estimated to reach 3.3% in 2021. Faster than average growth is expected to continue until next summer. GDP is projected to increase by 2.0% in 2022, and growth is expected to slow down to 1.4% in 2023. The short period of strong growth driven by global stimulus and the recovery from the COVID-19 pandemic will be over, and the economy will again face the growth constraints identified before the crisis.Private investment will recover significantly, prompted by domestic projects and better growth prospects in the global economy. Funding from the EU’s Recovery and Resilience Facility (RRF) will boost private investment between 2021 and 2023. Housing construction will contract slowly as the number of new housing starts will remain on the long-term average level. A high savings rate and optimism among consumers will create a basis for a rapid growth in private consumption. The savings rate will, however, remain positive throughout the forecast period as consumption will remain lower than disposable income.Global economic recovery, stimulus measures and the demand for Finnish exports in important trade areas will boost exports. Goods export will drive growth this year. Foreign trade in services is expected to show sharp growth in 2022, driven by high activity in pandemic-stricken industries such as travel and tourism once restrictions are lifted and uncertainty fades. Growth in employment has significantly accelerated in the first half of the year. Demand for labour, fuelled by economic growth, can be met in the short term with the large number of unemployed persons and government measures to increase the supply of labour. Earnings growth is expected to accelerate in 2022-2023. Inflation picked up in the first half of the year due to rising energy prices, but prices are rising on a wider scale. Rise in wages will be gradually passed on to prices of services, which will accelerate inflation.Economic recovery will not eliminate the structural imbalance in public financesThe general government deficit will shrink significantly this year and next year due to brisk economic and employment growth. Similarly, COVID-19 related spending and support measures will be wound down, which will strengthen general government finances next year. A temporary economic recovery will not, however, eliminate the structural imbalance affecting Finland’s public finances. As the economic cycle stabilises, the strengthening of the general government budgetary position will slow down and Finland’s public finances will remain in deficit by more than EUR 3 billion in the mid-2020s. The public debt-to-GDP ratio increased by 10 percentage points in 2020 to nearly 70%. During the forecast period, the indebtedness rate will decelerate considerably, and in the mid-2020s, the debt ratio is expected to temporarily stabilise at just over 73 %. However, the growth in health and long-term care expenditure associated with the ageing of the population threatens to put the debt-to-GDP ratio back on a growth path. Economic recovery still linked to the COVID-19 pandemicThe main risks in the forecast are still related to the COVID-19 pandemic and the restrictions introduced to manage it. A failure to manage the pandemic in developing countries would weaken their economies, which would significantly hamper global economic growth.A prolonged epidemic would reduce private consumption and especially demand for services, which would undermine economic recovery. Deterioration of the COVID-19 situation translates into growing uncertainty in the investment environment, which may result in investments being postponed or cancelled.Private investment relative to GDP will increase to nearly 20% during the forecast period. Funding from the EU’s Recovery and Resilience Facility (RRF) may boost private investment to a greater extent than assumed in the forecast. 

Source: Valtioneuvosto.fi

NordenBladet — Finland is hosting a meeting of the Syrian Women’s Advisory Board (WAB) from 26 September to 1 October 2021.The WAB is a network of Syrian women from a variety of socio-economic, political, cultural and geographic backgrounds, that advises the Special Envoy of the UN Secretary-General for Syria Geir O. Pedersen as he mediates a political solution to the conflict, in line with United Nations Security Council resolution 2254. The WAB considers women’s empowerment and rights when advising the Special Envoy and seeks to convey the diverse perspectives of Syrian women, as they relate to the political discussions.In Finland, WAB members will continue their internal discussions on issues related to their advisory role to the Special Envoy, as well as exchange views with Finnish partners about the role of women in conflict resolution and the role of education.Finland is an original supporter to the work of the WAB. This support is part of its overall contribution to UN Women’s Syria program amounting to one million euros over 2020-2021.Additional information: Petra Paasilinna, Senior Adviser on Syria, Unit for the Middle East, tel 050 478 3840. The Foreign Ministry’s email addresses are in the format [email protected]. 

Source: Valtioneuvosto.fi

NordenBladet — First Deputy Prime Minister of Spain, Minister for Economic Affairs and Digital Transformation Nadia Calviño will visit Finland on Monday, 27 September 2021. First Deputy Prime Minister Calviño will be accompanied by Secretary of State for Digitization and Artificial Intelligence Carme Artigas and Secretary of State for Telecommunications and Digital Infrastructure Roberto Sánchez. Deputy Prime Minister Calviño will visit Finland at the invitation of Minister of Transport and Communications Timo Harakka.She will meet Minister of Transport and Communications Harakka, Minister of Finance Annika Saarikko and Minister for Foreign Trade and Development Ville Skinnari.Deputy Prime Minister Calviño and Minister Harakka will discuss, among other things, data economy, cooperation in digitalisation and cyber security.The agenda of the meeting with Minister of Finance Saarikko includes topical economic and financial matters, including the recovery of the European economy.The topic of the meeting with Minister for Foreign Trade and Development Ville Skinnari will be the opportunities provided by the countries’ recovery plans. The main areas of the Spanish recovery plan include the green transition and digitalisation, in which Finland has a lot of expertise to offer.First Deputy Prime Minister Calviño will also take part in a round table discussion with Finnish technology companies. The discussion will be organised by Business Finland.

Source: Valtioneuvosto.fi

NordenBladet — A draft government decree on aid for energy investments under Finland’s Recovery and Resilience Plan in 2022–2026 is now complete. The Ministry of Economic Affairs and Employment is requesting comments on the draft at the Lausuntopalvelu.fi service by 20 October 2021.The aid scheme promotes energy investment and energy infrastructure projects that reduce greenhouse gas emissions in Finland and support the 2035 carbon neutrality target. The scheme also aims to reduce the technological and economic risks related to renewable energy and new energy technologies, for example in hydrogen projects. According to the decree, aid could be granted to energy infrastructure projects specified in the RRP, new energy technology, production and storage of low-carbon hydrogen, carbon dioxide capture and use, and investments to reduce carbon use and electrify industrial processes.The decree would lay down provisions on subsidised projects, the conditions and amount of aid and eligible costs. It would also set time limits for project completion and reporting, based on the deadlines in the EU Regulation on the Recovery and Resilience Facility (RRF) and Finland’s RRP.The Ministry of Economic Affairs and Employment and Business Finland would decide on the allocation of aid, based on the thresholds set in the decree. In addition, Business Finland would grant aid to Important Projects of Common European Interest related to hydrogen.The EU Regulation establishing the RRF was issued on 12 February 2021. It aims to help the Member States to recover from the coronavirus crisis. In order to receive financial assistance, Member States must present national recovery and resilience plans. Finland’s RRP is part of the Sustainable Growth Programme for Finland. It supports growth that is ecologically, socially and economically sustainable in line with the aims of the Government Programme. Under the RRP’s measures related to green transition, aid can be provided to energy infrastructure investments, waste heat recovery, new energy technology, industrial electrification projects and hydrogen projects.

Source: Valtioneuvosto.fi

NordenBladet — On Friday 24 September, the President of the Republic decided to appoint one new non-resident ambassador.The President of the Republic authorised Ambassador Pirkka Tapiola, Head of the Embassy of Finland in Nairobi, to represent Finland also in Eritrea and Somalia. 

Source: Valtioneuvosto.fi

NordenBladet — The Ministry of Finance and the Ministry of Social Affairs and Health have reviewed the grounds for the recommendation on remote work. The ministries propose to lift the recommendation on 15 October. The ministries estimate that by then the vaccination coverage will be close to the goal set by the Government. This would enable a safe transition to combined remote and office work.  The COVID-19 situation and vaccination coverage have improved throughout the country. However, the current vaccination coverage for the working-age population has not yet reached the minimum of 80 per cent specified in the Government’s revised hybrid strategy. In addition, a large number of new infections are still reported.   Return to workplaces may begin earlier if this is possible based on risk assessment and the regional epidemiological situation.  Workplaces are responsible for ensuring health security at work  Extending the recommendation on remote work until mid-October gives workplaces, in consultation with employees, an opportunity to flexibly transition to an increasingly hybrid model that combines remote and in-office work. Various aspects regarding the transition to a hybrid work model are discussed nationwide by the Finnish Institute of Occupational Health, ministries, the Finnish Institute for Health and Welfare, and labour market organisations, and they will be included in guidelines for workplaces. This preparatory work will provide a smoother transition to new routines in workplaces. As the national recommendations on remote work are being lifted, workplaces assume more responsibility for health security at work.  With more people present in the workplace, protection against the coronavirus continues to be necessary.   The Government assessed the different measures to prevent infections in January 2021 and decided on drafting an action plan concerning a gradual process to prepare for opening up society. As part of the action plan for implementing the hybrid strategy, the ministries were tasked with reassessing the grounds for the recommendation and its duration by mid-September. It was also recommended that national preparatory work should begin immediately for the transition from remote work to combined remote and office work.   In their work, the ministries made use of the assessments of the Finnish Institute for Health and Welfare and the Finnish Institute of Occupational Health concerning both the epidemiological situation and its development and impacts of remote work as a measure to prevent COVID-19 infections. 

Source: Valtioneuvosto.fi

NordenBladet — Achieving the UN’s Sustainable Development Goals (SDGs) during this decade will require significant changes to the way the public and private sectors allocate their investments. Finland’s sustainable financing roadmap, which will be published on 24 September 2021, will provide guidelines for the allocation of funding solutions to sustainable investments that need to be increased during this decade.Several national and international initiatives aim to support the transformation of the financial sector and to promote the comprehensive allocation of funding in accordance with the SDGs. The EU has shown great leadership in this matter and, at the same time, several countries have drawn up national strategies and programmes for the systematic promotion of sustainable financing. Finland has played an active role in sustainable finance initiatives internationally, and the Finnish Roadmap for Financing a Decade of SDG Action (to be published on 24 September 2021) will provide guidelines for the Finnish operators to implement the necessary changes. The roadmap is part of the project on Developing Finland’s Sustainable Finance Ecosystems. -Finland has performed very well in international comparisons of sustainable development. Promoting a sustainable financing system offers us an economically cost-effective way of responding to the challenges of sustainable development in Finland. At the same time, it helps us attract more investments and improves our competitiveness in the international market, says Minister of Economic Affairs Mika Lintilä.Success in the necessary transformations requires determined development of sustainable financing skills and coordinated public sector measures to mobilise private funding more comprehensively than now, specifically in line with the UN’s objectives. Implementing the transformation also requires the ability to identify and report on the impact of investments on economic, social and environmental sustainability. Four pilot projects to promote implementation of the roadmap The roadmap provides an opportunity for different operators to recognise their own role in promoting sustainable financing. Four ecosystem projects that help identify concrete sustainable financing solutions are currently underway to speed up the implementation of the roadmap. These include scaling up offshore wind power and sustainable protein production in Finland and promoting climate-smart water solutions and exports of vocational education. The Ministry of Economic Affairs and Employment is responsible for the national coordination of the project. The steering group includes representatives of key ministries and the Finnish National Agency for Education. 

Source: Valtioneuvosto.fi