NordenBladet — COVID-19 support for businesses reduced the likelihood of layoffs. However, allocating aid to sectors most affected by the coronavirus pandemic by means of the support for business development did not produce the desired impact, and companies would have needed support for costs of business sooner.These are the conclusions of two reports published by the Ministry of Economic Affairs and Employment on 20 April 2021: a research report by Aalto University and an annual report of the Research Division on Business Subsidies. Both reports discuss the effects of the coronavirus pandemic on the economy and companies and the impact of the COVID-19 support for businesses. The two reports focus on five forms of aid: support for cost of business granted by the State Treasury; support for business development granted by Business Finland and ELY Centres; support for the food and beverage service sector granted by the KEHA Centre; loan guarantees by Finnvera; and temporary RDI loans granted by Business Finland.“The COVID-19 pandemic was an unprecedented crisis that took us all by surprise. The service sector, in particular, has suffered the consequences of severe restrictive measures, while the industry has fared better. At the beginning of the crisis, it was important to support companies with the tools we had at our disposal. We will be using the research results to develop our support forms and improve our preparedness for future crises,” says Minister of Economic Affairs Mika Lintilä.Major differences in the allocation of support across sectorsThe majority of COVID-19 support for businesses went to accommodation services, food and beverage services, expert services, industry and commerce. In addition, small companies (from 5 to 49 employees) and companies in Uusimaa received most support in euros.A rough sectoral division shows that the most affected sectors received most of the support. Overall, a lot of COVID-19 support was allocated even to sectors with no or little decrease in turnover, such as professional, scientific and technical activities, information and communication services, and construction. However, there are great differences within sectors, and there are many companies in difficulty.COVID-19 loans and guarantees have been used relatively sparingly. In addition, in Finland the smaller-than-expected economic downturn and the well-functioning lay-off system have reduced the need for COVID-19 support compared to many other countries.Most impact from support of less than EUR 200,000It appears that COVID-19 support measures increased turnover and the amount of wages and salaries paid, and to a lesser extent, the number of employees. They reduced the likelihood of lay-offs and they may have prevented redundancies. Small subsidies of less than EUR 200,000 appear to have had the most effect.“Only short-term effects of the support have been studied so far. Despite many uncertainties associated with the impact analysis, the support measures appear to have helped both companies and employees. However, further studies are needed to assess the overall impact of the measures. The challenges in planning and allocating support for businesses during the coronavirus crisis show the need to improve the central government’s ability to collect and deploy up-to-date data,” says Professor Otto Toivanen from Aalto University and Helsinki Graduate School of Economics.About half of the companies that received support for business development from Business Finland and ELY Centres have designed new digital solutions. The effectiveness of COVID-19 support will also depend on whether the support for business development generates genuine innovation.COVID-19 support should have been deployed in reverse orderThe studies show that the different kinds of COVID-19 support for businesses should have been deployed in reverse order. At the beginning of a crisis, the emphasis should be on direct support for companies, such as support for cost of business. Later on, development support could take a stronger role.Allocating aid in the form of development support, granted by Business Finland, to the most affected sectors and companies did not produce the desired effect. Support for business costs, on the other hand, is an effective tool during a crisis, since inflexible overhead expenses can quickly drive a company into problems with profitability when demand suddenly drops. Its problem in the present crisis was that it required new legislation which took a relatively long time to introduce.“We must continue to assess the effects of the COVID-19 support on a broad front. It will help us prepare for future crises and facilitate an early implementation of an effective support policy,” says Seija Ilmakunnas, chair of the Research Division on Business Subsidies.Long-term impacts will be studied nextIn August last year, the Ministry of Economic Affairs and Employment commissioned an independent assessment of the COVID-19 support for businesses. The purpose is to analyse the short and long-term impacts of the measures and provide information to political decision-makers to help them prepare for future crises.The now completed studies focused on the short-term effects of the COVID-19 support for businesses. The Research Division on Business Subsidies, an independent body operating under the auspices of the Ministry of Economic Affairs and Employment, had overall responsibility of the project. It conducted its own assessments and selected Aalto University to perform background research through competitive tendering.Two separate reviews of the long-term effects of COVID-19 support for businesses will be conducted in 2021–2023. The Research Division on Business Subsidies will carry out a policy review of the various support forms to establish whether the selected forms were fit for purpose, to assess the overall role of market-based financing, and to identify which policy measures are suitable for different types of economic crises and specific needs. The impact assessment of COVID-19 support for businesses focuses on the effectiveness of certain forms of support when compared against the objectives set for them, long-term productivity, structural reform of the economy, and economic growth. The Ministry of Economic Affairs and Employment will select an organisation to carry out this assessment through competitive tendering.

Source: Valtioneuvosto.fi

NordenBladet — Building a battery cluster in Finland continues successfully through the measures included in the Battery Strategy and the recent capitalisation of Finnish Minerals Group.“Good news on Finland’s battery cluster continues, with the planned large investment in Vaasa and the earlier news about Finnish Minerals Group’s plan to construct a precursor materials plant. Finnish expertise and a stable investment environment support development based on the national Battery Strategy and investments to Finland,” says Minister of Employment Tuula Haatainen. “The planned investment shows that Finland is an encouraging environment for projects in the battery sector. The investment is partly a result of long-term efforts to support the Finnish battery industry and to attract investments. At the same time, the recent developments underline the importance of the new Battery Strategy in clarifying future prospects. The Strategy focuses on the availability and processing of raw materials resourced responsibly and the production and research activities related to battery materials and recycling. These investments, which are also important for regional economies, will undoubtedly fuel other new investments to Finland,” says Minister of Economic Affairs Mika Lintilä.Finnish Minerals Group announced on 19 April 2021 that it plans to invest in a cathode materials plant planned for Vaasa. Johnson Matthey, a UK-listed chemicals company, will collaborate with Finnish Minerals Group and lead the investment in the plant.  State capitalisation to support investmentsThe budget for 2021 includes additional funding of EUR 300 million for Finnish Minerals Group to promote investments for the production of precursor and cathode active materials used in lithium-ion batteries in Finland.“The purpose of the capitalisation was specifically to find partners for future investments. This news on the investment shows that the decision was right,” Haatainen adds.Battery Strategy shows the way for growthThe National Battery Strategy was published in January 2021. The Strategy identifies a number of Finland’s strengths that support the success of the battery industry and electrification. 

Source: Valtioneuvosto.fi

NordenBladet — Finland will participate in the annual UN Humanitarian Networks and Partnerships Weeks held from 19 April to 7 May 2021. The common theme of the Finnish delegation is comprehensive security.

The Finnish delegation, convened by the Ministry of the Interior and the Ministry for Foreign Affairs, includes representatives of public authorities, companies and higher education institutions. A total of eight organisations are involved in the delegation.“Finland is seen as a reliable partner in the international arena and our expertise is in demand. In particular, there is interest in the Finnish model of comprehensive security. This year we want to highlight it in our own programme,” says Jari Honkanen, Senior Specialist from the Ministry of the Interior.

The event is open to everyone interested in the topics The UN has been organising the Humanitarian Networks and Partnerships Weeks (HNPW) since 2015. This year, the event, which is usually organised in Geneva, will be completely virtual.Every year, the event brings together more than 2,000 global actors from UN Member States, NGOs, the scientific community and the private sector to discuss key humanitarian issues. At the event, participants can share their expertise and best practices and jointly create solutions to common problems.This year’s event will be open to all those interested in its topics. Registration is required to participate in the event.

NordenBladet — In October 2020, the Prime Minister’s Office announced a design competition for the memorial to former President of the Republic of Finland Mauno Koivisto. A total of 111 proposals were received by the deadline.

Kilpailun tulokset julkistetaan keskiviikkona 1. syyskuuta 2021. Kolme parasta ehdotusta palkitaan niin, että voittaja saa 20 000 euroa, toiseksi sijoittuva 15 000 euroa ja kolmanneksi sijoittuva 10 000 euroa. Lisäksi palkintolautakunta voi jakaa kaksi 5 000 euron tunnustuspalkintoa.

Tavoitteena on, että muistomerkki on valmis ja sijoitettu paikalleen Pikkuparlamentin puistoon 25.11.2023, jolloin tulee kuluneeksi 100 vuotta presidentti Koiviston syntymästä.Palkintolautakunnan muodostaa presidentti Mauno Koiviston muistomerkkitoimikunta, jonka puheenjohtaja on pääministeri emeritus Paavo Lipponen.

Jäsenet ovat:
Timo Lankinen, alivaltiosihteeri, valtioneuvoston kanslia (varapuheenjohtaja)
Antti Ahlava, arkkitehti, professori, Aalto-yliopisto
Heikki Allonen, diplomi-insinööri, omaisten edustaja
Pirjo Sanaksenaho, professori, Aalto-yliopisto
Sami Sarvilinna, kansliapäällikkö, Helsingin kaupunki
Maija Tanninen-Mattila, taidemuseon johtaja, HAM Helsingin taidemuseosekä Suomen Taiteilijaseuran nimeäminä taiteilijajäseninä:Kaarina Kaikkonen, kuvanveistäjä
Antti Tanttu, kuvataitelija

Palkintolautakunnan sihteereinä toimivat lainsäädäntöneuvos Sanna Helopuro ja johtava asiantuntija Tiina-Kaisa Laakso-Liukkonen valtioneuvoston kansliasta. Kilpailun välityshenkilönä toimii kilpailuasiamies Aura Lehtonen Suomen Taiteilijaseurasta.

Lisätietoja: alivaltiosihteeri Timo Lankinen, p, 0295 160 300 ja lainsäädäntöneuvos Sanna Helopuro, p. 0295 160 170, valtioneuvoston kanslia sekä johtava asiantuntija Tiina-Kaisa Laakso-Liukkonen, valtioneuvoston kanslia, p. 0295 160 220

NordenBladet — The main topics to be discussed at the April meeting of the EU Ministers of Foreign Affairs are the situation in Ethiopia and Ukraine. Finland’s representative at the informal video conference will be Minister for Foreign Affairs Pekka Haavisto. The Ministers will also hold an informal exchange with the Minister for Foreign Affairs of Ukraine, Dmytro Kuleba.

In connection with the exchange of views on Ethiopia, Minister Haavisto will give a briefing on his second visit as an Envoy of the European Union in the beginning of April, this time to Ethiopia, Saudi Arabia and the United Arab Emirates. The work done by Minister Haavisto is an important part of the EU efforts to end hostilities and acts of war in the Tigray region. In addition, the EU must continue its support to find peaceful solutions in the negotiations on the Grand Ethiopian Renaissance Dam (GERD), and related to the border conflict between Ethiopia and Sudan.

The discussion on Ukraine will focus on the recent escalation of tensions due to increased military presence of Russia close to the conflict area in eastern Ukraine and in the Crimean Peninsula illegally annexed by Russia. The objective for Finland is to ensure the EU’s solid support to Ukraine and its sovereignty and territorial integrity within its internationally recognised borders, and to actions that aim to ease military tensions in the region. Among the topics to be discussed is the reform process in Ukraine. The High Representative of the European Union for Foreign Affairs Josep Borrell has invited the Minister for Foreign Affairs of Ukraine Kuleba to an informal exchange with the Foreign Ministers of the Member States, to be held in connection with the conference.The current affairs to be discussed at the conference also include Mozambique, Belarus, Myanmar, Georgia, EU-India relations, and the situation of the Joint Comprehensive Plan of Action (JCPOA) of Iran.

NordenBladet — On 16 April, the Government amended the decree on voluntary COVID-19 vaccinations. The amended decree will specify Finland’s current order of priority for COVID-19 vaccination. It will also expand the group of people authorised to administer vaccines. In addition, it will make it possible to temporarily target vaccines by region on the epidemiological grounds that are uniform and defined in a transparent manner.

The decree will enter into force on 19 April 2021. Section 2a of the decree concerning the targeted allocation of vaccines to regions will be temporary and remain in force until 31 May 2021.

Vaccines administered by age group
Once vaccines have been given to the three main priority groups — people at risk, older people and healthcare and social welfare workers caring for COVID-19 patients — the rest of the population will be vaccinated by age group. Vaccines will be administered in descending order as follows: 60–69-year-olds, 50–59-year-olds, 40–49-year-olds, 30–39-year-olds and 16–29-year-olds.

The amendment to the decree will also allow vaccine injections to be administered by dentists. In addition, persons studying to be healthcare professionals (doctors, dentists, nurses, public health nurses or midwives) will also be authorised to administer vaccines under the guidance and supervision of a professional. This requires that the person has received the appropriate vaccination training. Previously, vaccines could only be administered by doctors or by nurses, public health nurses or midwifes with appropriate vaccination training.Vaccines can be temporarily targeted by region Under the amended decree, vaccines can be temporarily targeted by region. This was not possible before. The temporary amendment concerning the targeted allocation of vaccines to regions will remain in force until 31 May 2021.

In future, vaccine doses can be distributed in a targeted manner on the basis of uniform epidemiological grounds that are defined in a transparent manner. The principles of targeting set out in the decree take account of the availability of vaccines in Finland and any logistical challenges related to them. The decree will ensure that all regions receive vaccines.In future, the Finnish Institute for Health and Welfare should allocate the batches of the Moderna vaccine and one third of the batches of the AstraZeneca vaccine arriving in Finland to those hospital districts where at least 100 new cases per 100,000 inhabitants have been reported in the 14 days preceding the distribution of vaccine batches. Vaccines will be allocated to these hospital districts based not only on the number of people in the hospital district but also on the number of COVID-19 cases in the previous 14 days and the number of patients in specialised healthcare in the previous 14 days with equal weight given to all three factors.

Targeted allocation will only be possible if all people over 70 years of age and all those belonging to risk groups in the region have had the opportunity to receive their first dose of the vaccine. In addition, targeted allocation must not prevent a person from receiving their second dose of the vaccine that is necessary to achieve vaccination coverage or delay their second dose. The draft decree was circulated for comments between 1 and 13 April 2021. Altogether 51 comments were received.

NordenBladet — The Government has amended the decree restricting the activities of restaurants and other food and beverage service businesses due to the COVID-19 epidemic. The amendment to the decree will enter into force on 19 February at 00.00. 

After the temporary closure of restaurants and other food and beverage service businesses that is in effect from 29 March to 18 April, businesses can reopen with restrictions. The strictest restrictions will be imposed on the areas worst affected by the epidemic.  The regional restrictions will be amended weekly to correspond to the prevailing epidemiological situation. This will be done by amending the government decree.

All the restrictions will be reviewed on the basis of the national epidemiological situation. The first review will be conducted two weeks after the restrictions have entered into force, with a particular focus on the restrictions concerning terraces and patios, restaurants serving food and areas in the acceleration phase. It is imperative that the downward trend in new COVID-19 cases continues so that the restrictions can be eased.Restrictions on food and beverage service businesses in Åland, South Ostrobothnia, Kainuu, Central Ostrobothnia, Lapland, North Savo, North Karelia and North Ostrobothnia from 19 April 2021The amount of customer seating in restaurants that primarily serve alcoholic beverages will be restricted to half the normal number of seats. For other restaurants, 75 per cent of customer seats may be in use. The restriction on the number of customer seats will not apply to Åland.

Restaurants may serve alcoholic beverages until 22.00 and be open between 5.00 and 23.00. In these regions, restaurants must instruct customers to stay seated in indoor premises. This means that dancing and karaoke, for example, are prohibited.Restrictions on food and beverage service businesses in Uusimaa, Kanta-Häme, Southwest Finland, Satakunta, Pirkanmaa, Päijät-Häme, Kymenlaakso, South Karelia, South Savo, Central Finland and Ostrobothnia from 19 AprilThe amount of customer seating in restaurants that primarily serve alcoholic beverages will be restricted to one third of the normal number of seats. They may serve alcoholic beverages between 7.00 and 17.00 and be open between 5.00 and 18.00. For other restaurants, the amount of customer seating will be restricted to half the normal number of seats. They may serve alcoholic beverages between 7.00 and 17.00 and be open between 5.00 and 19.00. The restaurants located in these regions must also instruct customers to stay seated in indoor premises. This means that dancing and karaoke, for example, are prohibited.

NordenBladet — The new temporary amendments to the Communicable Diseases Act will make it possible to impose stricter restrictions on regions regarding the opening hours, licensing hours and number of customer seats of restaurants and other food and beverage service businesses. The President of the Republic approved the amendments to the Act on 16 April. The amendments will enter into force on 19 April and remain in force until 30 June 2021.

The number of customer seats in food and beverage service businesses could be limited to as little as one third of the normal capacity if the conditions laid down in the Communicable Diseases Act are met. Businesses could be required to stop serving alcoholic beverages as early as 17.00 and to close their premises by 18.00.Further provisions on the new restrictions will be laid down separately by government decree as the epidemiological situation requires. The decree can also require customers to make reservations, for example, and place restrictions on singing and playing music in food and beverage service businesses. More information on the government decree and the restrictions on food and beverage businesses will be provided separately.

Provisions  of Communicable Diseases Act that will enter into force after lockdown on 19 April
The amendments to the Act are based on the Government’s hybrid strategy. They will make it possible to introduce necessary and proportionate restrictions on the activities of food and beverage service businesses in line with the Government’s hybrid strategy after the temporary closure of restaurants has ended. Provisions on the closure are laid down by virtue of the Act on Accommodation and Catering Operations. After the closure , provisions on the restrictions will be laid down in the Communicable Diseases Act.

More stringent restrictions may be necessary to prevent the spread of new virus variants
In May 2020, restrictions on the activities of food and beverage service businesses were temporarily added to the Communicable Diseases Act, under section 58a, in order to curb the spread of the COVID-19 epidemic. Despite the intensified hygiene measures and restrictions, major transmission chains and mass exposures originating in food and beverage service businesses were identified in January and February 2021 before the temporary closure of restaurants and other food and beverage service businesses. In some cases, nearly all customers in the establishments in question had become infected. The risk has been particularly high in businesses whose primary source of income is the sale of alcoholic beverages, but there have also been infections originating in businesses that mainly serve food. The increased prevalence of more infectious virus variants has further heightened the risk of transmission in restaurants, bars and other premises where adults meet and gather.

Existing restrictions and general obligations remain in force
Under the Communicable Diseases Act, food and beverage service businesses must continue to follow specific hygiene requirements and ensure sufficient physical distance between customers. They are required to draw up a plan on how to implement the restrictions and obligations. The plan and the maximum permitted number of customers must be displayed where customers can see them.

The Regional State Administrative Agencies are responsible for overseeing compliance with the restrictions and obligations. The restrictions laid down in the Act  do not apply to the activities of staff restaurants or to takeaway sales of food and beverages. The restrictions on opening hours do not apply to food and beverage service businesses operating in connection with service stations or to food and beverage services on ships and airplanes travelling between Finland and other countries or operating abroad.

NordenBladet — Finland supports developing countries to fight against COVID-19 with more than EUR 80 million from its development cooperation appropriations. The sum includes a EUR 2.5 million core contribution paid to Gavi, the Vaccine Alliance, last year. International cooperation is instrumental for defeating the pandemic.

As part of international cooperation against COVID-19, Minister for Development Cooperation and Foreign Trade Ville Skinnari will attend a virtual high-level event, organised by the United States and Gavi. A new round of funding will be launched at the event. Meeting participants will include United States Secretary of State Antony Blinken, Prime Minister of Sweden Stefan Löfven and Prime Minister of Norway Erna Solberg.

The Gavi COVAX Advance Market Commitment (COVAX AMC) is a financing mechanism that supports access to vaccines especially for the world’s poorest countries. The COVAX AMC uses pooling of demand and advance purchase agreements to reduce manufacturing risk, to negotiate lower prices with manufacturers and to ensure equal access for low-income countries.

“We have a duty to ensure that COVID-19 vaccines are available to everyone – everywhere in the world. As we all know, no one will be safe until we eliminate the coronavirus from the whole world. We need vaccines to achieve this,” Minister Skinnari says.

Equal access to COVID-19 vaccines is important both for global solidarity and for health security in Finland. However, there are challenges in ensuring global access to COVID-19 vaccines. Poor countries, in particular, run the risk of lagging behind in vaccinating their population. Here, international cooperation plays a key role.Finland supports the EU’s vaccine solidarity to help third countries gain access to vaccines as soon as possible and favours the use of the COVAX Facility to donate vaccines especially for humanitarian purposes.

To date, more than 30 million doses of vaccines have been delivered to just over 80 countries through COVAX. The goal is to deliver around 250 million vaccine doses to 142 countries by summer. Gavi estimates that 1.8 billion doses could be distributed through COVAX AMC by the end of 2021, if the necessary funding level is achieved.

Altogether 190 countries are participating in COVAX, and the goal is to ensure that two billion doses of vaccines are manufactured by the end of 2021 for use in these countries. There are two ways in which countries can participate in COVAX: as self-financing countries or as funded countries who receive vaccines through COVAX AMC.Last year, Finland granted Gavi a core contribution of EUR 2.5 million. Finland supports vaccine development and deployment also through the Coalition for Epidemic Preparedness Innovations (CEPI) and the International Vaccine Institute (IVI). Finland is using around EUR 84 million to fund the international COVID-19 support. Finland is involved in global work against COVID-19 through the EU and through multilateral organisations and development finance institutions.

NordenBladet — The Government adopted the National Transport System Plan for 2021-2032 and submitted it in the form of a report to Parliament on 15 April 2021.The National Transport System Plan aims to add a longer-term perspective to development of the transport system throughout Finland. The plan was now drawn up for the first time and has been prepared interactively with stakeholders, under the leadership of a parliamentary steering group. The abundant feedback received during the consultation process was taken into account in finalising the plan.

The objective is that the transport system guarantees accessibility to all parts of Finland and responds to the needs of industries, commuting and housing. People should be able to choose more sustainable modes of mobility, especially in urban areas. In addition, the aim is to improve the socio-economic efficiency of the transport system.

Minister Harakka: Together towards common goals
“We are now making history. Finland’s first 12-year transport system plan provides long-term guidance for road and rail investments, maintenance and the development of all modes of transport. Planning that is proactive for a decade and knowledge-based decision-making will help to achieve more in a more efficient and sustainable manner with the same money,” says Minister of Transport and Communications Timo Harakka.

“I would like to warmly thank the parliamentary parties, both the Government and the opposition, who have worked together responsibly to create a common vision for the future. Hundreds of actors around Finland have made valuable contributions. Interaction will also continue in the implementation and in the launch of the next plan when the time comes,” says Minister Harakka.

What is the National Transport System Plan?
– A strategic plan for long-term development of the entire transport system
– The plan is drawn up for 12 years and is updated periodically, every four years
– The plan encompasses all transport modes, passenger and goods transport, transport networks, services and cross-cutting themes of the transport system
– The plan includes an action plan and a central government funding programme
– The plan brings together the measures taken by central and local government.
– Preparation is based on the Highways Act- Impact assessments are an essential part of the planning
– The plan will make decision-making concerning transport more knowledge-based

How is the transport system financed?
The central government will continue to be responsible for financing the state’s transport infrastructure.Pivotal to the financing of the route network is raising the level of funding for basic route operation. In addition, operational approaches are reformed so that EU funding can be used in full.

In the financing of the transport infrastructure, more emphasis is shifted to the railways. This is due to the fact that the rail network, especially towards the end of the decade, will be in great need of renovation. Another factor contributing to this is the wish to make use of EU funding that focuses specifically on the rail network.

However, the share of the road network in maintaining the basic route operation will remain higher than that of the rail network, and the repair deficit will be reduced for the entire route network, including the lower road network. The level of funding for the road network will continue to be higher than for the rail network.

The first National Transport System Plan has been prepared in accordance with the general government finance plan for 2021-2024 and the budget decisions for 2021-2024. For 2025-2032, the plan proposes increases in the financing of the transport system. The costs presented in the plan are estimates, and their implementation will depend on future budget decisions.Next stepsParliament takes a position on the National Transport System Plan.

Implementation of the National Transport System Plan begins. A stakeholder event on implementation is held during spring 2021.Based on the National Transport System Plan and the strategic situational picture of the transport network, the Finnish Transport Infrastructure Agency draws up an investment programme for the state transport infrastructure networks for the next 6-8 years. Drawn up for the first time in 2021, the investment programme is then used in preparing budget proposals.

Preparatory material gathered together in the Gateway to Information on Government ProjectsPreparatory material for the project is available in the Gateway to Information on Government Projects, where a memorandum published by the Ministry of Transport and Communications on 15 April deals with how feedback has been taken into account in finalising the plan and impact assessments. A publication on impact assessments has also been published.