NordenBladet — The Government, in cooperation with the President of the Republic, has declared a state of emergency in Finland due to COVID-19. In its plenary session on Monday 1 March, the Government declared that the country is in a state of emergency as referred to in section 3, paragraph 5 of the Emergency Powers Act. The state of emergency will enter into force immediately.Section 3, paragraph 5 of the Emergency Powers Act states that a widespread outbreak of a serious infectious disease, the effect of which is comparable to a major disaster, meets the definition of a state of emergency. 

The number and incidence of COVID-19 cases in Finland have risen very rapidly since the beginning of February 2021. The number of infections caused by new virus variants has clearly increased, which may further accelerate the epidemic and place significant strain on hospital and intensive care capacity if we are unable to bring the number of infections down. At this stage, there is no immediate need to adopt the powers laid down in Part II of the Emergency Powers Act, which restrict the fundamental rights of citizens, but the need to introduce them will depend on how the epidemic progresses in the near future.

However, the Government estimates that it will be necessary to apply the provisions of sections 106 (communication by the state administrative authorities in emergencies) and 107 (powers in emergencies) of Chapter 15 of the Act once the state of emergency enters into force. The government decision declaring the state of emergency will enter into force immediately and will remain in force until it is repealed. Government proposal on restaurant closures submitted to ParliamentImmediately after declaring the state of emergency, the Government submitted to Parliament a proposal for an Act on the Temporary Amendment of the Act on Accommodation and Catering Operations under section 23 of the Constitution of Finland. The proposal would temporarily close restaurants and other food and beverage service businesses to customers for three weeks. The act would enter into force on 8 March 2021 and remain in force until 28 March 2021. During that time, meals could still be sold to customers for takeaway and delivery. The closure would apply to food and beverage service businesses in areas where the COVID-19 epidemic is in the acceleration or community transmission phase. Staff restaurants and other restaurants not open to the public would be exempt from the closure. Separate provisions on the areas of application will be laid down by government decree.

NordenBladet — A new service opened today provides impartial data on the climate impacts of construction products used in Finland, such as carbon footprint and handprint, material efficiency and recyclability. This information harmonises the calculation of greenhouse gas emissions throughout the life cycle of buildings, facilitating low-carbon building design. The service is free of charge and open to everyone.

Press release of the Ministry of the Environment and the Finnish Environment

The service is a compilation of average data on the most common and typical construction products, and contains no individual environmental product declarations. Its core comprises information on the harmful and beneficial climate impacts of construction products, end-of-life recycling and recovery options, the waste volumes generated on construction sites, and the theoretical usable life spans of frequently replaced products. The database also includes emission data for the most common construction processes and services, such as haulage, construction and waste management.

The information is based on open sources, which are mainly environmental product declarations for construction products that have enabled comparison, selection and calculation of averages in partnership with construction product industry specialists. While catering specifically to construction industry professionals, such as designers, product manufacturers and construction firms, the database information will be useful for researchers and anyone who is interested in the climate impacts of construction.

Product emission details have been set out on easy offprint pages, with further opportunities to examine more detailed background studies. The service will initially be available in English, to be supplemented with content in Finnish and Swedish at a later date.

Construction industry involved in development work
Collaboration with the construction industry has been close, with more than 100 construction professionals contributing to the first release of the database. This co-development will continue, with the next content update scheduled for autumn 2021.

“The construction industry has been commendably involved in creating the service. The benefit has been mutual: we want to ensure that the service is well known and widely used in the industry. The construction industry will benefit from being able to see and anticipate changes in operating conditions and the direction of statutory guidance. We shall continue open development of the service in partnership with the construction industry,” says Senior Specialist Janne Pesu of the Finnish Environment Institute.

The database lays a foundation for statutory guidance of low-carbon construction. The current government programme envisages legislative control of the whole life-cycle carbon footprint of buildings by the year 2025. A low-carbon assessment method for buildings developed by the Ministry of the Environment has been trialled in construction projects since 2019.

A reform of the Land Use and Building Act is introducing statutes to promote low-carbon construction, for example concerning the climate assessment of buildings, and design based on digital information models. The database forms part of work to collate information on the built environment for greater accessibility in a compatible and machine-readable format. The Ryhti project at the Ministry of the Environment and SYKE is constructing a new information system for the built environment that will provide information on such aspects as the climate impact of building.

A pan-Nordic initiative to combat climate change
The Nordic countries have intensified collaboration in recent years with a view to reducing climate emissions from the built environment. The construction emissions database is a practical example of this work. The goal is for low-carbon buildings to be assessed on the same principles, as opposed to parallel development of separate assessment and calculation methods in these countries.Sweden is publishing its own complementary database on the same day as Finland: the information will be country-specific, but collected and collated in the same way. The database user interfaces will also correspond. Open information exchange, joint development and sharing of best practices between countries will help to ensure the comparability and quality of information. The Nordic construction industry in particular will benefit from this collaboration.

The Ministry of the Environment has tasked the Finnish Environment Institute with responsibility for maintaining and developing the database.C02data.fi: Construction emissions databaseQuestions and answers concerning the construction emissions database (in Finnish)

For further details, please contact:
Construction emissions database: Janne Pesu, Senior Specialist, Finnish Environment Institute, tel. +358 29 525 1405,
Statutory guidance for low-carbon construction and Nordic co-operation:  Matti Kuittinen, Senior Advisor, Ministry of the Environment, tel. +358 29 525 0268

NordenBladet — The Nordic countries have intensified co-operation in recent years to curb climate emissions from the built environment. This partnership focuses particularly on working to ensure corresponding principles for assessing and guiding the climate impact of construction in these countries.

Press release from the Finnish Ministry of the Environment and the Swedish Ministry of Finance

The Finnish and Swedish construction emission databases provide impartial and comparable information openly and free of charge concerning the greenhouse gas emissions of construction products and processes. Even though the information in the databases is country-specific, it has been collected and compiled in the same way, in partnership with the construction industries of the respective countries. The Nordic construction sector will benefit in particular from a uniform assessment of the climate impact of construction in the Nordic countries.

“Achieving the global climate target of the Paris Agreement will require a significant societal shift towards low emissions. I am pleased that Sweden and Finland are at the forefront of boosting the transition to more sustainable construction with lower environmental and climate impacts. Together, the Nordic countries can show the potential for combining the climate transition with prosperity and good competitiveness,” says Swedish Minister for Housing Märta Stenevi.

“In autumn 2020 the Nordic Ministers for Housing and Construction approved a new action plan for 2021–2024 seeking a more climate-friendly Nordic construction sector. This initiative is part of work to realise a vision of the Nordic countries as the world’s most sustainable and integrated region by the year 2030. The emission database services opened by Finland and Sweden today are an important step towards ambitious goals for the Nordic construction industry, which has significantly lower environmental and climate impacts,” says Paula Lehtomäki, Secretary General of the Nordic Council of Ministers.

There are major opportunities for Nordic co-operation in harmonising the regulations and standards that govern the construction industry. Many Nordic countries are preparing new legislation and other measures to boost low-carbon construction. The climate impact of the entire life cycle of buildings, from manufacturing building materials to preventing the formation of construction waste through reuse or recycling, must be considered more effectively in future.

One challenge for the construction industry has been disparate building regulations between the Member States, which at worst hinder trade both within the European Union and between Nordic countries. In spring 2020 the Nordic countries set up a joint steering group to co-ordinate the harmonisation of Nordic building regulations. Several new co-operation projects will be launched in 2021 with a view to making the Nordic construction and housing sector more sustainable and competitive.

For further details, please contact:
Timo Juurikkala, Special Adviser to the Minister of the Environment and Climate Change, Ministry of the Environment, tel. +358 40 555 4013,

NordenBladet — On Friday 26 February, on the second day of their meeting, the members of the European Council exchanged views on security and defence and discussed issues related to the Southern Neighbourhood. Prime Minister Sanna Marin represented Finland at the meeting.

In a statement issued after the meeting, the leaders of the EU Member States reaffirmed their commitment to the Strategic Agenda for 2019 –2024. The Strategic Agenda was adopted at the June 2019 European Council and aims to strengthen the EU’s position in a changing environment. With regard to security and defence, the EU leaders wish to promote the Union’s interests and values and ensure its preparedness to effectively tackle all security threats and challenges. The leaders reaffirmed that, in the face of increased global instability, the EU needs to take more responsibility for its security. At the same time, the EU is committed strengthening its partnerships with the UN, NATO and key regional partners. The EU leaders also look forward to cooperating with the new administration of the United States in this area.

The statement outlines a number of steps to deepen security and defence cooperation amongst Member States, increase defence investment and enhance the development of civilian and military capabilities and operational readiness within the Union. The Union is also working to strengthen its ability to respond to hybrid threats, including cyber threats and disinformation. The Strategic Compass, which will guide the implementation of security and defence cooperation, should be adopted by March 2022 at the latest.

The EU leaders also discussed the political and strategic nature of the EU’s partnership with the Southern Neighbourhood. The leaders would like to renew and strengthen this cooperation and partnership with a view to tackling common challenges and taking advantage of shared opportunities.

Source: Valtioneuvosto.fi

NordenBladet — At the presidential session on Friday 26 February, the President of the Republic appointed new Ambassadors and a new Consul General.

The President of the Republic appointed Counsellor for Foreign Affairs Kalle Kankaanpää to serve as Head of Mission at Finland’s Embassy in Zagreb, starting on 15 April 2021. Kankaanpää will transfer to Zagreb from the Ministry, where he has worked as Director of the Unit for Northern Europe since 2015. In the Ministry, he has worked in the Unit for Russia and held positions relating to regional cooperation. His career in the Diplomatic Service includes posts at the Finnish Embassy in Vilnius and at Finland’s Permanent Representation to the European Union in Brussels, where he also served as national specialist at the European External Action Service (EEAS). Kankaanpää joined the Ministry for Foreign Affairs in 1998. He holds a Master’s degree in Social Sciences.

The President of the Republic appointed Counsellor for Foreign Affairs Leena Viljanen to serve as Head of Mission at Finland’s Embassy in Windhoek, starting on 1 September 2021. Viljanen will move to Windhoek from the Asian Development Bank, where she has served as Alternate Executive Director since 2018. In 2014–2018, she served in the Ministry as Director of the Unit for South Asia. In the Diplomatic Service, she has also held posts in Jakarta and Nairobi. Viljanen joined the Ministry for Foreign Affairs in 1990. She holds a Master’s degree in Social Sciences.

The President of the Republic appointed Counsellor for Foreign Affairs Sannamaaria Vanamo to serve as Head of Mission at Finland’s Consulate General in St Petersburg, starting on 15 April 2021. Vanamo will move to St Petersburg from the Ministry where she has been Deputy Director General of the Department for Russia, Eastern Europe and Central Asia since 2017.  In 2014–2017, she served as Director of the Unit for Arms Control. Her career in the Diplomatic Service includes posts in Washington DC, Brussels and Moscow. Vanamo joined the Ministry for Foreign Affairs in 2000. She holds a Master’s degree in Social Sciences.

NordenBladet — The Ministry of the Interior has set up a project to reform the administration of rescue services. The project will prepare for the implementation of the rescue services reform by developing the national guidance system to meet the requirements of the reform. The goal is to transfer the responsibility for organising rescue services from municipalities to wellbeing services counties in a controlled manner.

The project has been set up to prepare the organisation of the national management and guidance system for rescue services. In addition, it will support regional preparation and provide a basis for work related to developing the operations and funding of the wellbeing services counties.The objective is to create a guidance system that is effective enough to ensure the smooth functioning of the national and regional rescue services system once the rescue services reform enters into force.

Project set up to prepare for implementation of rescue services reform

Currently, the responsibility for organising rescue services lies with municipalities and joint municipal authorities. After the reform, the new wellbeing services counties and the City of Helsinki would be responsible for organising both rescue services and health and social services in their respective areas. Rescue services would, however, continue to be a separate sector working in parallel with healthcare and social welfare.The reform would make it possible to provide more harmonised and thus more equal rescue services in all parts of the country. Rescue services could also better prepare for unforeseen threats, exceptional major accidents, emergencies and natural disasters.

The government proposal for the reform is currently being discussed by Parliament. In line with the proposal, the welfare services counties and the City of Helsinki would be responsible for organising rescue services in their respective areas from the beginning of 2023.

NordenBladet — The fight against disinformation is important also from the perspective of the realisation of human rights. Disinformation is a challenging issue, because it has not been defined in international law, and there is not a straightforward way to distinguish misleading information from correct information. The Finnish Coalition Chair will pay special attention to the introduction of normative instruments for internet stakeholders.
The Freedom Online Coalition (FOC) is a partnership of governments that are committed to the promotion of an open and safe internet. In February, a public online event was organised to discuss the FOC Joint Statement on the spread of disinformation. The event was part of Finland’s Chairship of the FOC in 2021.At the end of 2020, the FOC issued a Joint Statement on Spread of Disinformation Online, prepared under the leadership of Finland and the UK. Its aim is to counter the use of disinformation for undermining human rights, democracy and the rule of law.

NordenBladet — A study on the effects of diminished proceeds from gambling activities has been completed. The study examines four options for developing the Finnish gambling system. The working group sets as its primary option a comprehensive overhaul that would place gambling proceeds within the scope of universal coverage in central government revenue and existing beneficiaries would be under the spending limits procedure. The report was published on 26 February.BackgroundThe harmful effects of gambling are considered severe in terms of the wellbeing of society. For this reason, it was deemed necessary to intervene by legislative means and to introduce more measures to make gambling more accountable. Moreover, due to the COVID-19 epidemic, slot machines have been kept closed.The Finnish National Lottery, Veikkaus Oy, estimates that the annual central government proceeds from gambling services will fall by around EUR 300 million as a result of these measures. As the harmful effects of gambling are being reduced, it also means that the funding received by beneficiaries from gambling proceeds will diminish. This puts the present system in a challenging situation where we ought to be able to both curb the harmful effects of gambling and safeguard the future of civil society and other beneficiaries.Four options for the Finnish gambling systemThe working group proposes four different options for the future of the Finnish gambling system: Keep the current system and hope that it is sufficient;A one-off solution where the transfer to a universal budget takes place in one go and all earmarking is removed;A comprehensive overhaul starting in early 2024, carefully preparing the transfer of revenue to universal coverage and placing expenditure within the scope of spending limits budgeting;A partial reform, where part of the expenditure is gradually transferred to universal coverage and part remains earmarked and covered by gambling proceeds.In the first scenario, the level of funding for the existing beneficiaries would stay in line with future gambling proceeds (Veikkaus Oy’s estimate being under EUR 700 million annually). Every year, the need to offset the fall in gambling proceeds and possible additional funding requirements would need to be addressed.In the second option, Veikkaus Oy’s revenue would be fully converted into universal coverage, while expenditure would be covered through the ordinary budget procedure; in other words, funding for the beneficiaries would be transferred to the spending limits procedure in one go. Although this solution is clear-cut from the budgetary point of view, it would generate significant and sharp adaptation issues.In the third option, preparatory work would be initiated with the aim of transferring the gambling proceeds to a universal budget and, correspondingly, resources of at least the same magnitude would be included in the spending limits. The preparation work would be initiated immediately with regard to the required legislative amendments. We would also launch preparations for those activities that are financed by Veikkaus Oy’s proceeds to be transferred within the scope of the spending limits procedure. With regard to the timetable, the primary option would be to complete the reform during the current Parliament, which would make it possible to implement it from the beginning of 2024.In the fourth option, some of the current beneficiaries would receive funding from gambling proceeds and some would be transferred to receive funding through the Budget. In this option, the Government would have to decide separately which items of expenditure would be transferred to a universal budget. This could also lead to a situation where amendments would have to be made to the act on the criteria for the distribution of gambling proceeds at every transition stage. Distribution ratios would have to be reconsidered if beneficiaries were to be transferred in uneven ratios within the scope of the ordinary budget under the responsibility of different ministries governing the beneficiaries.The working group sets as its primary option a comprehensive overhaul that would place gambling proceeds within the scope of universal coverage in central government revenue and existing beneficiaries would be under the spending limits procedure. Converting to universal coverage presents challenges too. Understandably, transferring beneficiaries within the scope of central government spending limits would mean that funding for civil society funding would no longer be dependent on uncertain gambling proceeds. On the other hand, it would make the funding dependent on political decisions and uncertainty. Careful preparation and planning are needed to measure, enhance and evaluate the funding for beneficiaries and non-governmental organisations. In principle, spending limits funding should aim to finance existing beneficiaries and non-governmental organisations in such a way that their activities do not become exposed to unreasonable financial uncertainty and instability. Funding for beneficiaries must not be beyond the reach of democracy; instead, it must be protected from abrupt political cycles.Better financial stability for beneficiaries and civil society could be ensured if the magnitude of funding could be determined for a period that is longer than one parliamentary term. Tulevaisuuden vaihtoehtoja (The Finnish gambling system is changing) Future options

Source: Valtioneuvosto.fi

NordenBladet — In their video conference on 1 March 2021, EU tourism ministers will discuss ways of helping the tourism sector recover from the crisis caused by the coronavirus pandemic. State Secretary Kimmo Tiilikainen will represent Finland at the meeting on behalf of Minister of Economic Affairs Mika Lintilä.The informal meeting will be held at the initiative of the Portuguese Presidency of the Council of the EU. The meeting will discuss the effects of the pandemic on the tourism sector and consider joint EU measures to ensure a sustainable, digitalised and competitive tourism sector in the short and medium term.“The coronavirus pandemic has set health security against economic and social activity. This is the case in tourism in particular. It is therefore important to develop tourism in a more sustainable direction by renewing tourism services,” Tiilikainen says.Collecting and utilising data forms the basis for the development of tourism.
“Decision-making within tourism must be based on up-to-date and timely information. We need more tools, funding and networking opportunities at EU level to develop knowledge-based management, also within tourism,” Tiilikainen says.“It is also important for the recovery of tourism that we are able to maintain a positive attitude towards it during the pandemic, even if the opportunities for travel are limited at the moment,” he adds.Tourism is one of the sectors most severely affected by the coronavirus. About 11.7 million people in the European Union, or 9% of the area’s workforce, earn a living from tourism. In Finland, the tourism sector employs more than 140,000 people.

Source: Valtioneuvosto.fi

NordenBladet — The Government submitted the first supplementary budget proposal for 2021 to Parliament on Thursday 25 February. The supplementary budget makes special provisions for needs arising from the COVID-19 situation.The first supplementary budget proposal for 2021 proposes appropriations to secure additional COVID-19 vaccine procurements and safeguard critical transport connections, security of supply and the transport of Finland’s foreign trade as the pandemic continues. Additional appropriations are also proposed to support the arts and culture sector and for children, young people and families. An increase in appropriations is also proposed to ensure that the municipal elections can be carried out safely.Changes arising from COVID-19An increase of EUR 70 million is proposed for COVID-19 vaccine procurement. The increase is targeted at the procurement of additional batches of COVID-19 vaccines and the advance payments needed to secure them.A total increase of approximately EUR 61 million is proposed for the central government’s share of the earnings-related component of the unemployment benefit and job alternation compensation, and for its share of the basic security component of the unemployment benefit. The need for an additional appropriation arises from a proposal to extend the temporary legislative amendments currently in force in unemployment security by three months, i.e. until the end of June 2021, due to the ongoing pandemic. The increase in costs is due to the continuation of the increased exempt amount of the employment benefit and the right of entrepreneurs to receive labour support, among other factors.An allocation of EUR 23.2 million is proposed to support the operation of cargo and passenger vessel shipping companies. The goal of this additional appropriation is to safeguard Finland’s essential transport connections, security of supply and transport of foreign trade as the coronavirus pandemic continues and to guarantee regular freight and passenger transport between Southwest Finland, Åland and Sweden, between Helsinki and Estonia and between Vaasa and Umeå.An additional appropriation of EUR 15 million is proposed for the operating costs of the Arts Promotion Centre. The additional appropriation aims to mitigate the effects of COVID-19 on individuals and others in the arts and culture sector. The appropriation will be allocated in the form of grants. In addition to these, the Government proposes an additional appropriation of EUR 5 million for film production companies to help manage the financial losses caused by COVID-19. The package will be financed by reallocating support for business costs.An increase of EUR 17.6 million is proposed for the operating costs of courts, public legal aid and guardianship districts, the enforcement service and bankruptcy supervision, the Consumer Dispute Board, the National Prosecution Authority and the Criminal Sanctions Agency to cover the costs arising from the COVID-19 situation. An increase of EUR 1.3 million is proposed to ensure that the municipal elections can be carried out safely under the exceptional circumstances caused by the pandemic.Several additional appropriations are proposed to support children, young people and families. A total of EUR 2.5 million is proposed for increasing and developing young people’s recreational and summer activities and to support summer entrepreneurship and working life skills among young people. EUR 17.5 million is proposed for measures to support vocational education and training. These support measures aim to prevent students from dropping out of their studies, improve student wellbeing and to reduce disparities in students’ skills. A further allocation of EUR 17.5 million is proposed for the development of municipal healthcare and social service structures to better support children, young people and families during and after the COVID-19 pandemic.Other changesThe supplementary budget proposal proposes amendments to support for the management of young forest stands and the collection of small-diameter wood under the Act on the Financing of Sustainable Forestry and to the related tasks of the Finnish Forest Centre. An increase of EUR 4.0 million is proposed for increasing the use of small-diameter wood in energy production.An increase of EUR 10 million is proposed for phasing out oil heating.The supplementary budget proposal proposes increasing the budget authority for items under the EU’s regional and structural policy and other cohesion policy programmes by EUR 295 million and increasing the appropriation by EUR 130 million. These increases are due to the REACT-EU funding allocated to Finland’s Structural Funds Programme “Sustainable growth and jobs 2014-2020” for 2021–2023 as part of the EU recovery instrument.Changes in revenue estimatesThe Government proposes increasing the tax revenue estimate by EUR 415 million based on tax receipt data and the macroeconomic forecast updated in December. Economic activity is expected to develop more favourably than previously predicted. Earned income tax and capital income tax revenue is expected to grow by EUR 207 million more than previously anticipated. Based on the most recent trends, the estimate for inheritance and gift tax revenue has been increased by EUR 138 million. Based on tax receipt data, revenue from the asset transfer tax is also expected to increase by EUR 70 million more than previously projected.Impact on central government debt and the balance of central government financesTaking into account the increase of EUR 415 million in actual revenues and the increase of EUR 394 million in appropriations, the first supplementary budget proposal for 2021 reduces the central government’s net borrowing requirement by EUR 21 million. The central government’s net borrowing in 2021 is estimated to be EUR 11.7 billion. The amount of Government debt at the end of 2021 is estimated to be approximately EUR 137 billion, which is around 56 per cent of gross domestic product (GDP).

Source: Valtioneuvosto.fi