Commerce sector pleased with the government’s RDI investments – structural reform and measures to strengthen employment still lacking 

The commerce sector expected the government’s budget framework session to provide solutions that support purchasing power, promote growth-enhancing regulatory reform and take into account all potential and cost-effective energy production methods in response to the prevailing energy security and climate challenges.

“The government’s decisions are mostly a step in the right direction, but are lacking in terms of reform,” says the Managing Director of the Finnish Commerce Federation Mari Kiviniemi.

According to Kiviniemi, bringing the social security index increase forward, the decisions expected later this spring ensuring the availability of affordable energy and the index adjustments to income tax are necessary, but rather modest for ensuring purchasing power.

“It is understandable that, in response to the consequences of Russia’s military actions and ensuring Finland’s security, the government will take on more debt. Actions to ensure Finland’s defence, cybersecurity, and security of supply are needed now. However, at the same time, credible plans to control debt and change course in the next few years would also have been needed. The need for structural reform is constantly growing,” Kiviniemi emphasises.

The Finnish Commerce Federation would have also wanted to see decisions that improve employment and dismantle incentive traps. Raising the income level for study grants is only a small, albeit very welcome, way of improving work incentives.

Creating sustainable growth and reforming the economy require regulatory reform. It is a positive that authorisations for investments are being sped up and green transition projects are being prepared in an accelerated timeframe. However, the need for making authorisation quicker is extensive.

“In addition to these, there would have been a need to pave the way for dismantling monopolies. In particular, the pharmacy market should be reformed in the interests of consumers and society on the basis of the proposals for measures presented by the Finnish Competition and Consumer Authority. Reforming the markets in the same way as other Nordic countries would also ensure lower medicine prices, which is particularly important as other costs of living rise,” Kiviniemi says.

Increasing Business Finland’s RDI grant authorisation and increasing funding for leading companies are good decisions for supporting the reform of the corporate sector. It would be important to speed up Finland’s transition to a modern service economy and also focus support on developing consumer services, according to the Finnish Commerce Federation.

“The government’s goal of increasing energy self-sufficiency and moving away from fossil energy is vital. The commerce sector has a waste heat potential of nearly one terawatt-hour, which should be used as part of reaching that goal. The energy transition requires experts, and thus we support additional investments in vocational training,” Kiviniemi emphasises.

Further information: 
Mari Kiviniemi, Managing Director, Finnish Commerce Federation, 050 511 3189, mari.kiviniemi(at)kauppa.fi