Government report on Sustainable Growth Programme for Finland submitted to Parliament – Focus on reforms and productivity
Government Communications DepartmentMinistry of Finance 27.11.2020 12.12PRESS RELEASE 751/2020
The Sustainable Growth Programme for Finland will focus on achieving a fast-track recovery, structural reform of the economy and public services reform. The reforms and investments proposed in the Sustainable Growth Programme will accelerate the fight against climate change, boost productivity and economic growth potential, and ensure inclusiveness in society. This is the conclusion of the government report submitted to Parliament on Friday 27 November.
The report was prepared by the Ministry of Finance. Assisting in this work was the inter-ministerial coordination group appointed by Prime Minister Sanna Marin in September 2020. The preparation also involved close dialogue with regional organisations, local government, the business sector and the scientific community.
The report gives Parliament the opportunity to take a view on how to best use the financing from the EU’s recovery instrument. The plans must be ready at the very start of 2021 to allow Finland to prepare for the next steps in the EU’s decision-making and to benefit quickly from the opportunities provided by the recovery instrument.
Green transition and digital transformation to be boosted by innovative solutions and new technologies
The Sustainable Growth Programme for Finland will support economic, social and environmental sustainability goals in a variety of ways. A key element of the Programme is to accelerate the green transition and digital transformation through innovative solutions and new technologies. At least half of the Sustainable Growth Programme will focus on investment and reform packages for the green transition.
The investment and reform packages are designed to have positive impacts in the long term. They are substantial packages of effective and mutually supportive investments and reforms. The idea is also to attract private investment through financing.
Priority will be given to measures which improve employment, competitiveness and the sustainability of public finances, and which help with net emissions reductions, strengthening the circular economy and adaptation to climate change. Attention will also be given to how these measures can support Finland’s recovery from the COVID-19 crisis. How quickly the investments and reforms can be put into place is also an important consideration.
Sustainable growth by working together
Partnerships, widespread involvement and interministerial collaboration are essential for the Sustainable Growth Programme to succeed. This also requires flexibility and reform in the public sector and a new kind of interaction. Finland’s recovery and resilience plan will also take into account other aspects of the EU recovery instrument, the necessary national match funding, the measures already outlined by the Government, the needs of future-oriented investments, and the proposals of the post-crisis management and reconstruction groups.
Programme preparation on long-term basis
Preparation of the Sustainable Growth Programme for Finland by the coordination group is taking place in the latter part of 2020 and will continue during 2021. A ministerial working group led by the Minister of Finance is being set up to guide this work. The plan for projects to be implemented in Finland will be submitted to the EU in spring 2021. The Sustainable Growth Programme will be further refined and updated later as necessary. The implementation of measures under the Programme can continue until the end of 2026.
The Ministry of Finance will provide further information on the projects in connection with the spending limits and budget procedures for central government finances.
Caption: Sustainable Growth Programme timeline
The Sustainable Growth Programme for Finland is intended to be financed using funding provided from the EU stimulus package in 2021–2023. The Programme takes into account not only the finance from the Recovery and Resilience Facility (RRF), but also other EU programmes and instruments receiving additional funding via the stimulus package.
Finland, through its EU membership contributions, is participating in the funding of the recovery instrument in the long term. The impact on the Finnish economy in the coming years will depend on how effectively this financing is used for investments and for accelerating reforms. The European Commission estimates that as a consequence of the stimulus package, the EU’s real gross domestic product (GDP) will be as much as 2 per cent higher than without the package.