The intensified competition between the United States and China is pushing the EU to consider more radical solutions regarding business subsidies. While subsidies are not typically paid in a market economy, finding a balance between being right and acting rationally is a challenge for the EU. The concern is that if Finland adheres strictly to orthodox principles and does not attract investments, what will be the consequences?
Amidst these debates, there are concerns over the effectiveness of the EU common fund and how funds will be allocated. Risto Murto, CEO of Varma, criticizes the overly optimistic view of the EU common fund, emphasizing the need for a merit-based project funding approach. Economists like Vesa Vihriälä stress the importance of increasing funding for research and development activities to address Europe’s shortcomings in scaling cutting-edge technologies.
While Finnish growth companies received significant capital investments last year, Swedish business figure Jacob Wallenberg expresses a more pessimistic outlook. He highlights the negative impact of the US government’s support on green transition investments flowing to Europe, favoring the US. Wallenberg suggests that the EU should respond to competition from the US and China with a corona-era recovery mechanism.
The debate over the EU common debt is escalating as member countries have differing views on its necessity. Director of Labore Mika Maliranta believes that Finland can still secure green investments with small tax breaks while some within
