FINLAND

252,700 unemployed jobseekers in November

By
Helena-Reet Ennet
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NordenBladet — The number of unemployed jobseekers decreased by 61,800 from November last year. The number of new vacancies reported in November totalled 93,100. In all, the number of unfilled vacancies amounted to 168,100, which is 76,800 more than a year ago.At the end of November, a total of 252,700 unemployed jobseekers were registered at the Employment and Economic Development Offices and municipalities participating in the local government pilots on employment. This is 61,800 less than a year earlier, but 24,100 more than in November two years ago. The number of unemployed jobseekers was down by 6,300 from the previous month. Of the unemployed jobseekers, 134,900 were customers of municipalities participating in the local government pilots on employment. The number of unemployed jobseekers also includes those fully laid off. These figures are from the Employment Bulletin of the Ministry of Economic Affairs and Employment.At the end of November, the number of people laid off was 27,800 in the whole country, which was 48,600 fewer than at the same time the year before. The number of people fully laid off totalled 18,600, representing a decrease of 39,300 from November the year before. The number of people fully laid off decreased by 1,100 from October.106,200 unemployed in the long termThe number of long-term unemployed — that is those who had been unemployed without interruption for at least a year — amounted to 106,200, up 20,900 on the previous year. The number of unemployed jobseekers aged over 50 was 99,800, or 16,100 fewer than at the same time a year earlier.The number of unemployed jobseekers aged under 25 was 26,500, representing a decrease of 9,500 from November last year. Of the unemployment periods of youths, 61.1 per cent ended before reaching three months between January and November. This is 3.0 percentage points less than the year before.Increase in new vacanciesThe number of new vacancies reported during November totalled 93,100, or 43,700 more than in November the previous year. In all, the number of unfilled vacancies in November amounted to 168,100, which is 76,800 more than a year ago.At the end of November, the number of persons covered by services included in the activation rate amounted to 115,000, down 5,200 on the previous year. These services include pay subsidies, labour market training, work trials and self-motivated studies.Statistics Finland: The trend of the unemployment rate 6.9%According to the Labour Force Survey issued by Statistics Finland, in November the number of people in employment was 62,000 more than on the previous year. The trend of the employment rate was 72.8%, which was 1.8 percentage points higher than in November the year before. According to the Survey, the unemployment total was 164,000, which is 24,000 less than a year ago. The trend of the unemployment rate was 6.9%, or 1.3 percentage points lower than the previous year.Key differences between Employment Service Statistics and the Labour Force Survey This information is based on the Ministry of Economic Affairs and Employment’s Employment Service Statistics and the Labour Force Survey of Statistics Finland. The Employment Service Statistics of the Ministry are compiled on the basis of the information in the Employment and Economic Development Offices’ customer register, while the Labour Force Survey of Statistics Finland is based on sampling. In the Ministry’s Employment Service Statistics, people that are not in an employment relationship or employed in business are listed as unemployed. Persons fully laid-off but not full-time students are also categorised as unemployed in the Employment Service Statistics. The Labour Force Survey of Statistics Finland has a stricter definition of being unemployed: a person is unemployed if he or she has actively sought employment during the preceding four weeks and is available for work over the coming two weeks. The figures of the Labour Force Survey of Statistics Finland are internationally comparable and thus they are the official Finnish unemployment statistics. Further information on the differences in the statistics https://tilastokeskus.fi/til/tyti/tyti_2019-09-13_men_001_en.html

Source: Valtioneuvosto.fi

Commission approves changes to state aid scheme to support companies by up to EUR 2.3 million due to the epidemic

By
Helena-Reet Ennet
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NordenBladet — The European Commission decided on 20 December 2021 that the changes to the state aid scheme sought by Finland are compatible with the EU internal market. The state aid scheme is one of the instruments available to the Finnish authorities to support companies during the coronavirus crisis. The key changes relate to the maximum amount of company-specific aid and the duration of the programme. The maximum amount of aid will rise from EUR 1.8 to EUR 2.3 million, with the scheme remaining in force from the end of 2021 until 30 June 2022.The objective of the scheme is to support companies suffering from sudden liquidity impairment or loss of liquidity due to the coronavirus outbreak. In addition, it allows companies to continue and develop their activities, and maintain employment. The aid scheme enables the introduction of national business support measures in several administrative sectors in Finland. In addition to central government authorities, municipalities may also grant aid. The amendments adopted by the Commission will also help Finland implement the fifth application round for business cost support. Legislation concerning the fifth application round for business cost support is based on the more flexible rules of the state aid scheme.Aid scheme based on temporary flexibility in EU state aid rulesThe Finnish state aid scheme is based on the Commission’s temporary changes to the state aid rules adopted on 19 March 2020. The changes allow EU Member States to use the full flexibility provided by the state aid rules to support the economy during the coronavirus epidemic. The Commission approved Finland’s original state aid scheme in April 2020. With the exception of the higher maximum amount of aid, the rules of the aid scheme will remain largely unchanged. For example, aid cannot be granted to medium-sized or large companies that were already in difficulty on 31 December 2019, that is, before the outbreak of the coronavirus epidemic. Support granted under the aid scheme may be combined with de minimis aid. De minimis aid refers to aid that may be granted to companies by various entities up to a maximum of EUR 200,000 over three fiscal years.All aid granted under a Commission decision must be reported to the Commission afterwards. The Commission also requires transparency related to aid granted under the temporary framework if its amount exceeds EUR 100,000. Member States are required to make available online all relevant information on each individual form of aid granted under the aid scheme exceeding EUR 100,000, such as the beneficiary and the amount of the aid.The amendments sought by Finland are based on the Commission’s Communication of 18 November 2021.  Based on the Communication, the temporary state aid rules have been extended until the end of June 2022 and the maximum amount of aid has been raised to EUR 2.3 million.

Source: Valtioneuvosto.fi

Description of the enterprise architecture for promoting health and wellbeing published

By
Helena-Reet Ennet
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NordenBladet — The objective of the description of the enterprise architecture for promoting health and wellbeing is to support the development of digital services that are reliable, accessible and easy to find. Meeting this objective requires a common view and a framework for national, regional and local cooperation.Aiming to provide better opportunities for people to promote their own wellbeing and the wellbeing of their family and friendsThe purpose of the enterprise architecture for promoting health and wellbeing is to create a common view, a target state and a framework to support national, regional and local development. The objective is to support the development and interoperability of information management and digital services.The expected benefits include accessible and effective digital services people can use to promote their own health and wellbeing and those of their family and friends.Reliable information, accessible and supportive digital servicesIn the vision for the enterprise architecture for promoting health and wellbeing, digital services are reliable and offer their users encouragement and support. Services must provide reliable, understandable and easily accessible information on how to promote health and wellbeing, and on services and activities available. People must be provided easy and safe access to their personal health and wellbeing information. Information management and accessible digital services are designed to encourage and help people find ways of promoting their health and wellbeing in different life situations.  A late startThe progress made in building health and wellbeing related information management, digital services and information systems has not been as swift as the progress made in building national, regional and local healthcare services. However, digital services offer significant potential as a tool for promoting health and wellbeing and for preventive action. 
Areas in need of development include: 1) making digital services reliable and easy to find for ordinary people and for professionals 2) strengthening digital inclusion 3) developing information management and digitalisation in cooperation with national, regional and local players.

Source: Valtioneuvosto.fi

Call for applications for funding to promote the green transition in energy system and industry starts

By
Helena-Reet Ennet
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NordenBladet — The first application round for energy investment subsidies under the Sustainable Growth Programme for Finland will take place from 20 December 2021 to 4 March 2022. Funding will be available for energy infrastructure projects, 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 aim is to reduce Finland’s greenhouse gas emissions, support Finland’s carbon neutrality targets and encourage businesses to adopt renewable energy and new energy technology. The first application round is intended for energy investment and infrastructure projects with investment costs exceeding EUR 5 million.“The energy investment subsidies will be allocated to large-scale projects that have real effectiveness. The funding now available will promote the green transition by launching major investments in energy and hydrogen in Finland,” says Minister of Economic Affairs Mika Lintilä.Companies and corporations eligible for energy investment aidThe funding will be directed to investments related to green transition, which is the first pillar of the Sustainable Growth Programme. A total of EUR 520 million has been reserved for this funding.Using the same application form, funding can be applied for investments in energy infrastructure,investments in new energy technology,capture and use of hydrogen and carbon dioxide, anddirect electrification and decarbonisation of industrial processes.Aid may be granted to companies and corporations, and only to projects or parts of projects that would not be launched without the aid.The projects must be completed by 30 June 2026.First aid decisions likely to come in spring 2022Applications for funding will be submitted through Business Finland’s electronic services, but the Ministry of Economic Affairs and Employment will make the funding decisions. In considering the applications, the Ministry will pay particular attention to energy and emission impacts of the projects, cost-effectiveness, feasibility, novelty value of the technology included in the projects, replicability of the technology or project, and other impacts of the projects. The applications must also comply with the “do no significant harm” principle, meaning that the implementation of investments must not cause significant harm to environmental objectives.The schedule of aid decisions depends on the number of applications and the need for processing. The Ministry aims to make the first decisions in spring 2022. The Ministry will organise an information event on the call for applications on 14 January 2022.

Source: Valtioneuvosto.fi

Legislative project launched to bring police cooperation agreement between Finland and Sweden into force

By
Helena-Reet Ennet
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NordenBladet — The Ministry of the Interior has today set up a legislative project to prepare a government proposal for adopting and bringing into force the agreement on police cooperation in the border area between Finland and Sweden.The Finnish and Swedish interior ministers signed the agreement on police cooperation in October. The agreement is applied in Finland in the territories of the municipalities of Enontekiö, Kolari, Muonio, Pello, Tornio and Ylitornio. In Sweden, the agreement is applied in the territories of the municipalities of Haparanda, Kiruna, Pajala and Övertorneå.The agreement covers urgent situations related to prevention of serious crimeThe agreement is applied only in urgent situations and it contains mainly two types of cooperation: measures carried out on request and without a request. A request can be made to the neighbouring country if urgent assistance is needed to prevent a serious criminal offence involving danger to the life, health or physical integrity of an individual. Such serious offences include rape, aggravated assault and homicide. However, the parties may also deny the request.In the government proposal, Parliament will be requested to adopt the agreement. The proposal will also include a bill to bring into force the provisions of a legislative nature in the agreement. The project will also examine national legislation and, if necessary, relevant contents will be brought in line with the agreement.  The project will run from 20 December 2021 to 31 May 2023.

Source: Valtioneuvosto.fi

Finland’s presidency of N5 and NB8 end with Foreign Minister meetings on 20 and 21 December

By
Helena-Reet Ennet
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NordenBladet — In 2021, Finland chaired the Nordic (N5) cooperation on foreign and security policy and the Nordic-Baltic (NB8) cooperation. Minister for Foreign Affairs Pekka Haavisto will host the last meetings of the two presidencies as virtual meetings on 20 December (N5) and 21 December (NB8).At their meetings, the foreign ministers will discuss topical foreign and security policy issues, such as Belarus, Ukraine, arms control ahead of the conference to review the Treaty on the Non-Proliferation of Nuclear Weapons, the rule of law, and questions related to the UN and the OSCE. “Finland’s presidencies of N5 and NB8 have been a great experience, as these cooperation arrangements offer an important opportunity to discuss key international policy issues among our close partners. Video conferences are useful, but it was especially great that we were able to hold the NB8 Foreign Ministers’ meeting in Finland at Vanajanlinna in September,” says Foreign Minister Haavisto. Next year, the N5 presidency will be held by Norway and the NB8 presidency by Lithuania.

Source: Valtioneuvosto.fi

General picture of the economy stable, despite the acceleration in the pandemic

By
Helena-Reet Ennet
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NordenBladet — The economy will grow rapidly in 2021 and 2022, although growth will be slower than was expected at the turn of the year, due to the acceleration in the COVID-19 pandemic and restrictive measures, the Ministry of Finance projects in its Economic Survey, published on 20 December.This year, gross domestic product (GDP) is expected to grow by 3.4%. Moreover, GDP is expected to grow by 3.0% in 2022, by 1.5% in 2023 and by 1.4% in 2024. The economic recovery will continue, and growth will accelerate in 2022, particularly in those sectors where output has not yet reached pre-pandemic levels, for example in accommodation and food service activities.Uncertainties arising from the manner in which the disease develops, virus mutations and vaccination coverage have increased further. The forecast assumes, however, that the deterioration of the disease situation will only momentarily slow down the economic recovery. The general government deficit will decline sharply and the debt-to-GDP ratio will fall temporarily in 2021–2022. Rapid economic growth will not, however, remove the imbalance between general government revenue and expenditure. As economic growth slows, the debt ratio will once again begin to rise. “The epidemic will recede in time, but the demographic and economic transformation will be prolonged. Navigating the transformation successfully will require from us frontline competitiveness, expertise, new technological solutions and substantial private investment as well as prudent public spending,” says Director General Mikko Spolander.Growth outlook for global economy overshadowed by pandemic and accelerating inflation The growth outlook for the global economy is overshadowed by, among other things, the protracted pandemic and rapidly accelerating inflation. The pick-up in consumer price inflation is due, among other things, to rising energy prices. Inflationary pressures are projected to ease during 2022, however.The growth prospects for world trade are undermined by supply chain disruptions for various reasons as well as slowing growth in the global economy. In the euro area, the outlook for trade in goods is weaker than in the United States or the emerging economies. Economic recovery to continue, driven by domestic demand GDP is expected to grow by 3.4% in 2021. The deterioration in the COVID-19 pandemic at the end of 2021 is increasing uncertainty among economic agents and slowing economic growth in the final quarter. GDP is expected to grow by 3.0% in 2022, but economic growth will be slow in the first quarter of the year. However, as the uncertainties surrounding the COVID-19 pandemic ease, economic growth will pick up once again. The high savings rate and consumer confidence have created conditions for rapid growth in private consumption. Private consumption will continue to grow in 2022, and private investment will also grow rapidly. Funding received rom the EU’s Recovery and Resilience Facility (RRF) will boost private investment, and research and development investment, in particular, is expected to benefit. The investment outlook for Finnish industry is also good. In 2022, export growth will continue strongly due to growth in the global economy. A recovery in exports of services will also accelerate export growth.Economic growth will maintain demand for labour, which may also be met in the short term, as the number of unemployed remains high and the Government is taking steps to increase the labour supply. Employment is forecast to grow by 1.5% in 2022 and the employment rate to rise to just over 74% in 2024. Inflation will accelerate to 2.6%, at national consumer prices, in 2022. Underlying this is the price of energy, which will sustain inflation around the turn of the year but will gradually decline during 2022. The acceleration in inflation is expected to be temporary. In Finland, inflation will slow to 1.8% in 2023–2024.Public finances are recovering from the crisis, but indebtedness will continue to increaseThe imbalance between general government expenditure and revenue will sharply decline in 2021 but will still be well above the pre-pandemic level. Public finances have been strengthened, particularly by the rapid growth of tax revenues and social security contributions as a result of buoyant economic growth and improved employment. In addition, the pick-up in the economy from the downturn has reduced the need for recovery and support measures. The COVID-19 pandemic, on the other hand, continues to impose a burden on health and social services, in particular. The general government deficit will not be eliminated completely, however, even though the economy will recover and the pandemic will ease over time. There is a structural deficit in general government finances, which the good economic conditions will not correct. The general government deficit is expected to be around 1% of GDP in the mid-2020s.Rapid GDP growth and the falling deficit will result in a decline in the debt ratio in 2021. As economic growth slows, however, the deficits of central government, local government and the wellbeing services counties will again turn the debt ratio to growth from 2023 onwards. The debt ratio is expected to be approximately 69%, i.e. roughly 10 percentage points above the pre-pandemic level, in 2026. Rapid deterioration of pandemic the main threat to economic growth The most significant risks to the forecast continue to be related to the COVID-19 pandemic and the development of the restrictive measures taken to manage it. Virus variants are changing the outlook for disease control in a more uncertain direction, and the pandemic situation may deteriorate rapidly despite the progress of vaccinations. If development in the emerging economies is poor and their pandemic management is unsuccessful, this will be a major blow to global economic growth. A prolongation of the epidemic would reduce private consumption and demand for services, in particular, which would undermine the economic recovery. The deterioration of the disease situation is also reflected in increased uncertainty in the investment environment, which may delay investments or prevent their implementation. The pick-up in inflation is expected to be a temporary phenomenon and inflation will slow again from the second half of next year. It is possible, however, that inflation will continue to be high for a longer period. A key concern with regard to expectations of rising inflation is that wages will also rise along with prices. A price-wage spiral in the economy would be a self-sustaining and longer-term phenomenon that would slow economic growth.The fact that the EU’s Recovery and Resilience Facility will generate more private investment than projected in the forecast can be viewed as a positive risk.

Source: Valtioneuvosto.fi

Ministry of Social Affairs and Health requests comments on draft government proposal to expand use of COVID-19 passport

By
Helena-Reet Ennet
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NordenBladet — The Ministry of Social Affairs and Health requests comments on a draft government proposal according to which the nationwide use of the EU Digital COVID Certificate, i.e. the COVID-19 passport, would also be possible by law when there are no restrictions in force.The draft also proposes that municipalities and Regional State Administrative Agencies, which make official decisions in accordance with the Communicable Diseases Act, could, in certain cases, issue a decision obliging operators to require their customers and participants to present a COVID-19 passport. Similarly, the Government could issue a decree obliging restaurants to require their customers to present a COVID-19 passport. In practice, municipalities and Regional State Administrative Agencies as well as the Government in the case of restaurants could make the use of the COVID-19 passport mandatory for certain operators and in certain situations.Expanding the use of the COVID-19 passportExpanding the nationwide use of the EU Digital COVID Certificate, i.e. the COVID-19 passport, would mean in practice that the COVID-19 passport could also be introduced on a voluntary basis in situations where operators are not subject to restrictions. Operators could thus require their customers or participants to present a COVID-19 passport in order to prevent the spread of COVID-19 infections. The COVID-19 passport could also be introduced in sectors other than the food and beverage service sector and the event sector, for example. At present, the COVID-19 passport serves as an alternative health security measure only when the event or facilities in question are subject to restrictions.As under the current legislation, people aged 16 years or older could be required to present a COVID-19 passport.The obligation to present a COVID-19 passport could not apply in connection with statutory services (such as libraries, early childhood education and care, pre-primary education and primary and lower secondary education, liberal adult education, basic education in arts, vocational education and training, general upper secondary education, higher education), essential services (such as health and social services) or acquiring supplies or materials (food, medicines). In addition, the obligation to present a COVID-19 passport could not prevent people from fulfilling their rights and obligations. Operators could only require a COVID-19 passport of customers, participants or the public. Operators could not, however, require their employees to present a COVID-19 passport under this regulation. Section 58j of the Communicable Diseases Act lays down provisions on processing the data contained on the EU Digital COVID Certificate and verifying the person’s identity.Comments can be submitted until 17 January 2022Comments on the draft government proposal can be submitted between 17 December 2021 and 17 January 2022. Comments are requested to be submitted in the lausuntopalvelu.fi service (available in Finnish and Swedish).The Act is scheduled to enter into force as soon as possible and it would remain in force until 30 June 2022.

Source: Valtioneuvosto.fi

Restrictions on entry at Finland’s external borders to continue and health security measures to be tightened

By
Helena-Reet Ennet
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NordenBladet — In line with the Government decision of 16 December, the restrictions on entry at Finland’s external borders will continue and health security measures will be tightened as of 20 December. The decision will remain in force until 16 January 2022According to the decision, passengers arriving from outside the EU and the Schengen area will be required, as of 21 December, to show a negative COVID-19 test certificate issued less than 48 hours before their arrival in addition to proof of a full course of vaccination.This requirement applies until 31 December 2021 to those born in 2005 or earlier, and as of 1 January 2022, to those born in 2006 or earlier.The requirement does not apply to persons living in Finland or in another EU or Schengen country when they return to their country of residence, nor to persons who have an essential reason for entry, such as compelling family matters or another compelling personal reason.However, all passengers are required to present certificates as laid down in the Communicable Diseases Act and comply with the decisions made by the Regional State Administrative Agencies on compulsory health examinations.People may enter Finland from EU and Schengen countries without travel restrictions as before.Visit the website of the Finnish Border Guard for more information about the restrictions on entry and the website of the Finnish Institute for Health and Welfare for more information on health security measures. 

Source: Valtioneuvosto.fi

EU environment and climate ministers to discuss climate package

By
Helena-Reet Ennet
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NordenBladet — The EU ministers responsible for the environment and climate change issues will meet in Brussels on 20 December to discuss the EU’s climate package (Fit for 55 package), the Battery Regulation and the Soil Strategy. State Secretary Terhi Lehtonen will represent Finland at the meeting.In July 2021, the Commission issued an extensive package of proposals for climate legislation. The proposals of the Fit for 55 package implement the obligation in the European Climate Law to reduce net greenhouse gas emissions of the EU by at least 55% by 2030 compared to 1990 levels. The Presidency will present a progress report on the proposals that are the responsibility of the Environment Council (Emissions Trading Directive, Effort Sharing Regulation, LULUCF Regulation, Regulation setting CO2 emission performance standards for cars and vans, and Regulation establishing a social climate fund). The Environment Council discussed these proposals in October 2021 as well. In addition, the Presidency will present a report on the progress made in all proposals included in the Fit for 55 package in different Council configurations. The Government’s positions on the proposals have been presented in separate Union communications.“The key issue here is that the package as a whole will be sufficient to achieve and exceed the emission reduction target of at least 55 per cent. Finland considers it important that the package will not be weakened as the negotiations proceed but, rather, it will become even stronger. This is why one of our proposals is that the CO2 standards for vehicles should be tightened faster than in the Commission’s proposal,” State Secretary Terhi Lehtonen says.The ministers will also discuss the European Commission’s proposal for a new Battery Regulation, issued by the Commission a year ago. The proposed regulatory package will promote a sustainable European battery industry and the circular economy of batteries, while at the same time securing a high standard of environmental and health protection. The previous time the ministers discussed this proposal was at the June Environment Council. Since then the proposal has been discussed in several working groups, but the progress has been very slow. In general, Finland considers the proposed regulation as good and welcome. A regulation framework that offers a high standard of environmental protection will also promote the competitive position of the Finnish battery industry within the EU.The topics to be discussed also include the Communication on the new EU Soil Strategy issued by the Commission in November 2021. The vision of the new EU Soil Strategy is that all soil ecosystems in Europe will be healthy by 2050. The aim is to ensure the protection, restoration and sustainable use of soil. Finland considers it important and necessary to update the strategy. However, in the initiatives related to soil it is important to take into account the different natural conditions and circumstances in different Member States. Finland’s positions regarding the Soil Strategy will be formulated in more detail in the Europe communication that is being prepared.

Source: Valtioneuvosto.fi

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