A recent article by correspondent Jyrki Palo shed light on the EU stimulus package, specifically in relation to providing aid to Spain. While the topic has not received much coverage in the Finnish media, despite the availability of information on the subject, the legal basis of the stimulus package has been questioned. However, EU leaders made decisions within the framework of multi-year financial plans, making opposition to the package challenging.
The stimulus package allocated roughly 390 billion euros of its 750 billion euro pot as grants, with the remaining 360 billion as loans. Finland’s share of the total pot is approximately 12 billion euros, depending on whether all member countries choose to take loans. The distribution of funds among member countries has been a subject of criticism, especially due to similar regional distribution of aid money. Countries like Spain, Italy, and Poland are set to receive substantial sums of money from this package, but concerns have been raised about how this money will be utilized effectively.
For instance, support for tourism, industry, small and medium-sized enterprises and digital infrastructure are some specific examples of how these funds will be allocated. Despite some modifications in their allocation strategy much of the aid is still focused on business support, renewable energy and innovation initiatives.
Finland is expected to receive approximately 3.8 billion euros from these initiatives including support for projects such as peat sinking. It’s important to view discussions about additional stimulus packages in context with the EU’s evolving role as an income transfer union with a focus shifting towards large stimulus and sovereignty packages.
