The government plans to put the controversial business subsidies on the table in a budget debate that will soon begin.

The time is the most difficult possible, when the interest rate crisis has revolutionized the economic situation in Finland and the world since the entries in the government program.

At the table, there is at least emissions trading compensation on the table.

It is running out from 2022 onwards.

According to a government source in Taloussanomat, the starting point is that compensatory aid will not continue in its current form.

Instead, EU recovery funds would be available to replace low-carbon investments.

Of the actual business subsidies, there is energy taxation in particular on the government table.

Instead of a much-tarnished energy tax cutter, industry would receive an electricity tax rebate, which would save companies € 245 million a year.

The electricity tax rebate applies to a larger number of companies than the current energy tax rebate model.

From the beginning of 2021, the electricity tax would be reduced as low as allowed by the EU Energy Directive.

At least in the light of these changes, the industry would therefore not suffer particularly heavy losses of subsidies.

The changes are based on the government program of Prime Minister Sanna Marin (sd), which has agreed on a target of a proposal to reduce business support by one hundred million euros at the 2023 level.

The changes are driven by the need to reduce industrial carbon emissions in line with climate goals.

Emissions trading compensation is money paid to companies in energy-intensive industries.

It replaces the price of allowances in electricity.

The industry wants to stick to it, but from the point of view of climate goals, compensatory aid erodes the effectiveness of emissions trading.

Last year, EUR 29 million in compensatory aid was paid to 40 companies.

Since 2017, a total of EUR 94 million has been paid in support.

The forest industry benefited the most from the aid, as its facilities accounted for half of the beneficiaries.

Leaders ’outputs are confusing

The Finnish operating environment has been criticized in recent days by UPM's and Kesko's top management.

In an open letter, UPM's President and CEO Jussi Pesonen criticized the taxation of Finnish industry and the labor market.

VAT claims of Marita Laukkanen, a VATT researcher, corrected Pesonen's allegations concerning diesel taxation.

According to him, the tax was raised by 6.5 cents a month ago, but its real price has not risen since 2012.

He wrote on a messaging service on Twitter that the August increase will have an impact on manufacturing costs of 0.03 percent.

In his speech (which was later clarified), Kesko's President and CEO Mikko Helander compared Finland to North Korea and Greece, referring to left-wing economic policy and public debt.

Pesonen also said in Talouselämä on Thursday that in a couple of decades, politicians' understanding of the role of industry as a builder of well-being has weakened.

The fate of the Kaipola plant was affected by profitability and logistics costs.

Have companies been sufficiently supported in Finland?

Patrizio Lainà, chief economist at STTK, marvels at the outputs of business leaders.

- Special comment from [Pesone] in view of the reduction in the electricity tax rate, which is also a significant business subsidy and all corona subsidies combined.

Quite a lot has been taken into account the concerns of companies, even large ones.

The definition of business support is not clear and it is difficult to calculate the total number of forms of support.

The state's own listing a few years ago lists 71 different types of corporate subsidies, including agriculture and forestry.

In November last year, Lainà calculated that in the 2010s, companies have received EUR 22 billion in various handshakes.

Companies have at least benefited from a reduction in corporate tax, the abolition of the Kela tax, the extension of working hours brought about by the Competitiveness Agreement and reductions in social security contributions.

Statistics Finland said on Thursday that EUR 150 million in direct business support was distributed in January-March, compared to EUR 106 million a year earlier.

However, most of the supported companies were micro or small enterprises.

According to the Ministry of Employment and the Economy, the total amount of state interest rate financing in March-June was about 22 billion euros - the same as Lainà's calculation for the entire 2010s.

As a result, interest-rate subsidies - albeit less than half of recoverable money such as loans and guarantees - will double all aid to businesses to a whopping € 44 billion from 2010 to 2020.

Lainà points out that the short-term notification and negotiation periods for redundancies have been forgotten among the forms of interest rate subsidies on display.

These are generally not included in the total amount of corona subsidies.

He has calculated that the benefit to companies from reducing layoffs is estimated at € 850 million.

The calculation is based on the assumption that time in companies was reduced by an average of four weeks.

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