Brussels, 25 January 2024
Today, the Commission has endorsed a positive preliminary assessment of Finland’s first payment request for €202 million in grants under the Recovery and Resilience Facility (RRF), the key instrument at the heart of NextGenerationEU.
On 10 November 2023, Finland submitted to the Commission a payment request based on the achievement of the 20 milestones set out in the Council Implementing Decision for the first instalment.
These cover a set of transformative reforms such as tax reforms to promote the electrification of industry and encourage investment in low-carbon technologies, tax incentives to promote sustainable transport and the use of electric vehicles, improvements to employment opportunities through matching continuous learning opportunities with labour market needs and key legislation in the context of the social, healthcare and rescue services reform.
The milestones also include key investments in support of the green and digital transition, such as the transformation of energy infrastructure and new energy technologies and the production and use of low-emission hydrogen. Other key investments target the reduction of climate and environmental impacts of buildings and support precision forestry to promote climate resilient measures and environmental sustainability.
With their request, the Finnish authorities provided detailed and comprehensive evidence demonstrating the fulfilment of the 20 milestones. The Commission has thoroughly assessed this information before presenting its positive preliminary assessment of the payment request.
The Finnish recovery and resilience plan includes a wide range of investment and reform measures in 14 thematic components. The plan will be financed by €1.95 billion in grants. To date, Finland has already received €271 million in pre-financing.
Payments under the RRF are performance-based and contingent on Member States implementing the investments and reforms outlined in their respective recovery and resilience plans.
Next steps
The Commission has now sent its positive preliminary assessment of Finland’s fulfilment of the milestones and targets required for this payment to the Economic and Financial Committee (EFC), asking for its opinion. The EFC’s opinion, to be delivered within a maximum of four weeks, should be taken into account in the Commission’s assessment. Following the EFC’s opinion, the Commission will adopt the final decision on the disbursement of the financial contribution, in accordance with the examination procedure, through a comitology committee. Following the adoption of the decision by the Commission, the disbursement to Finland can take place.
The Commission will assess further payment requests by Finland based on the fulfilment of the milestones outlined in the Council Implementing Decision, reflecting progress on the implementation of the investments and reforms.
The amounts disbursed to the Member States are published in the Recovery and Resilience Scoreboard, which shows progress of the implementation of the national recovery and resilience plans.
Members of the College said:
President of the European Commission Ursula von der Leyen said:
“Today I am happy to announce excellent news for Finland. Once EU countries give their agreement, Finland will receive a first grant payment of €202 million under the Recovery and Resilience Facility. Finland has kicked off important reforms and investments, such as tax incentives to promote clean mobility, reforms to improve employment opportunities and investments in low-carbon technologies. Hyvä, Suomi. We walk this road together.”
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Quotes
Today I am happy to announce excellent news for Finland. Once EU countries give their agreement, Finland will receive a first grant payment of €202 million under the Recovery and Resilience Facility. Finland has kicked off important reforms and investments, such as tax incentives to promote clean mobility, reforms to improve employment opportunities and investments in low-carbon technologies. Hyvä, Suomi. We walk this road together.
Congratulations to Finland for meeting the first 20 milestones set out in its recovery and resilience plan. Many of these will contribute to Finland’s green transition. It is making investments to transform its energy infrastructure and boost new energy technologies, also setting out tax reforms to promote the electrification of industry and phasing-out of fossil fuels. On the social side, Finland is boosting job opportunities by matching continuous learning opportunities with labour market needs. And we welcome its focus on welfare by improving access to health and social services. Once the Commission’s assessment is reviewed and approved by Member States, Finland should receive €202 million in grants to help create a more resilient economy that will benefit its people and businesses.
Today’s positive preliminary assessment of Finland’s first payment request marks an important step in the implementation of its recovery and resilience plan. Finland has successfully implemented the 20 milestones linked to this payment request. These include key measures to green the transport system, energy infrastructure and building stock; to ensure workers have the skills they need in an evolving labour market; and to improve social, healthcare and rescue services. Once the relevant procedures are finalised, we will be able to make a payment of €202 million in grants to Finland, providing strong EU support for this important reform and investment programme.
Q&A on Finland’s disbursement request under NextGenerationEU
Brussels, 25 January 2024
How did the Commission assess Finland’s first payment request?
On 10 November 2023, Finland submitted to the Commission a request for the disbursement of €202 million in grants under the Recovery and Resilience Facility (RRF). The request was based on the achievement of the 20 milestones for the first instalment, as outlined in the Council Implementing Decision approving the Finnish plan.
These cover a set of transformative reforms such as tax reforms to promote the electrification of industry and encourage investment in low-carbon technologies, tax incentives to promote sustainable transport and the use of electric vehicles, improvements to employment opportunities through matching continuous learning opportunities with labour market needs and key legislation in the context of the social, healthcare and rescue services reform.
The milestones also include key investments in support of the green and digital transition, such as the transformation of energy infrastructure and new energy technologies and the production and use of low-emission hydrogen. Other key investments target the reduction of climate and environmental impacts of buildings and support precision forestry to promote climate resilient measures and environmental sustainability.
With their request, the Finnish authorities provided detailed and comprehensive evidence demonstrating the fulfilment of the 20 milestones. The Commission has thoroughly assessed this information before endorsing the positive preliminary assessment of the payment request.
What are the next steps?
The Commission has now sent the positive preliminary assessment of Finland’s fulfilment of the milestones and targets required for this payment to the Economic and Financial Committee (EFC), asking for its opinion. The EFC’s opinion, to be delivered within maximum four weeks, should be taken into account in the Commission’s assessment. The Commission will adopt the decision on the disbursement of the financial contribution, in accordance with the examination procedure, through a comitology committee. Following the adoption of this decision by the Commission, the disbursement to Finland would take place. The amounts disbursed to the Member States will be published in the Recovery and Resilience Scoreboard. The Commission has also shared its positive preliminary assessment with the European Parliament.
How do the milestones achieved by Finland so far effectively support the green transition?
The green transition is supported by targeted taxation reforms to promote the electrification of industry, the phasing out of fossil fuels and to encourage more investment in low-carbon technologies, as well as to raise the tax on fossil heating fuels. In addition, a tax reform on sustainable transport introduces tax incentives to promote sustainable transport and incentives to encourage the use of electric vehicles, public transport and bicycles in employee transport. Finland also adopted a roadmap for fossil free transport. This includes instructions and guidelines for the preparation of measures to reduce greenhouse gas emissions from domestic transport by 50% by 2030 compared to 2005 levels. The roadmap is complemented by a government decision to conduct an impact assessment on possible additional measures for fossil-free transport to reduce emissions.
The milestones also confirm progress towards the completion of investment projects related to new energy technologies and energy infrastructure investments, such as the production and use of low-emission hydrogen and carbon dioxide capture and use. The decarbonisation of industry through direct electrification is also covered, as well as the low-carbonisation of industrial processes and recycling and reuse of industrial waste and side streams, such as batteries, plastics, textiles, electronic equipment and other materials.
Further investments contribute to reducing the climate and environmental impacts of buildings through low-carbon built environment projects and climate-resilient measures in the land use sector through precision forestry projects. Research Development and Innovation, research infrastructure and piloting are also funded to increase competences in sectors that are key for the green transition.
How do the milestones achieved by Finland so far effectively contribute to the digital transition?
Many milestones contain important elements that will contribute towards the digital transition, for example in the context of industrial reforms and investments supporting the green and digital transition. The milestones also advance the digitalisation programme for continuous learning. Investments in RDI activities related to digitalisation and digital transformation are also covered, as well as support for innovation in crisis-impacted sectors, such as the cultural and creative sector.
How do the milestones achieved by Finland so far contribute to improving Finland’s economic and social situation, and its resilience?
The important investments and transformative reforms related to the green transition will contribute to improving Finland’s future resilience. Moreover, key legislation establishing 22 new welfare areas (21 regional as well as the City of Helsinki) for organising social, healthcare and rescue services will further bolster Finland’s economic and social resilience and improve access to health and social services. The reform of continuous learning and related digitalisation programmes and the funding for cultural and creative sectors that were heavily impacted by the COVID-19 pandemic are also important in this context.
Does the achievement of these first milestones contribute to an effective implementation of the Plan?
The milestones fulfilled constitute significant steps in the implementation of Finland’s recovery and resilience plan and its ambitious reform agenda.
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Source – EU Commission