France’s nearly one billion euro state aid program gains approval from the EU Commission

Finland Calls for Temporary Aid to Protect Competition in EU while Commission Proposes Joint Financial Instrument

The European Commission has recently approved a 900 million euro French state aid program to support companies investing in renewable energy sources. This move is seen as a significant step towards a zero-emissions economy while ensuring fair competition in the EU internal market. The Finnish government, however, has emphasized the need for temporary crisis aid to avoid distorting competition and weakening the internal market.

The Commission has suggested that a joint financial instrument of the EU could be an alternative to state aid competition, but Finland remains adamant that temporary aid is necessary. Discussions on the future of the internal market are ongoing, with a focus on competitiveness and attracting green and digital investments. The Finnish Confederation of Business and Industry has called for new tools to enhance Finland’s competitive position, including tax incentives and new investment instruments at the EU level.

Looking ahead, discussions on strengthening Finland’s competitive position will continue, with a proposed tax relief or exemption model to attract foreign investments. The European Council is expected to address these issues at an extraordinary summit in April, aiming to secure strategic investments for the future. The EU’s state aid rules have been extended multiple times, with a focus on promoting green technologies and transition to renewable energy sources. Former Prime Minister of Italy Enrico Letta is currently reporting to the European Council on the internal market’s future.


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