The debate over the EU common debt and the role of business subsidies in its future are intensifying, as member countries have differing views on their necessity. 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.
Finland’s strict adherence to orthodox principles may result in consequences if it does not attract investments. However, some, like Director of Labore Mika Maliranta, believe that Finland can still secure green investments with small tax breaks. In contrast, Swedish business figure Jacob Wallenberg expresses pessimism and highlights the negative impact of US government 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.
Risto Murto, CEO of Varma, criticizes the overly optimistic view of the EU common fund and emphasizes 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.
Looking ahead, decisions by the next EU commission and parliament will have significant implications for member countries like Finland. With different perspectives within the EU and the business community, finding a consensus on the best approach for supporting businesses in the face of global competition is a complex challenge.
