Our Key Messages
Chemical Industry Federation of Finland’s Key Messages for Finnish Policy Makers.
Boosting Investments in a Competitive Operating Environment
1. Accelerating Investments
We need an industrial policy strategy that extends beyond government terms, supported by an operating environment and financing mechanism that ensure the realization of industrial investments. An investment tax incentive is a suitable measure. To support this, a financing program with the proposed 400 million euros industrial policy allocation is a good start. This should be expanded to share the risk associated with the adoption of new technologies. Through this financing program, Finland will become a more attractive investment destination. The decision to end support for electrification should be reversed, and the fuel distribution obligation should be restored to the previously decided level.
2. Streamlining Permits
The smoothness and predictability of permitting are crucial for attracting and advancing investments in Finland. Companies need to trust that the environmental permit granted by the authorities will hold and not be overturned or delayed by appeals for years. The resources for environmental permit processing need to be increased, and binding deadlines (a maximum of 12 months) should be set for processing permit applications. Similarly, the processing of appeals should be expedited by increasing judicial resources. The new state permit agency should have efficient and swift processing procedures and adequate expertise.
3. Business-Driven RDI Funding
Research, development, and innovation are the engines of our society’s renewal and the foundation of our well-being. Without RDI I activities, there are no new products, services, or business models – all of which make Finland competitive. The government should focus funding on chemical industry companies through Business Finland’s financing instruments and technology programs, as they are crucial for achieving the clean transition. For example, hydrogen, batteries, chemical recycling, biotechnology, and innovative drug development are all part of the chemical sector and essential drivers of renewal and growth in Finland.
4. Lowering the Employment Threshold
Finland needs legislation for an export-driven labor market model within the government’s set timetable. An export-driven model supports Finland’s cost competitiveness and employment. The government program includes significant and important labor market reforms that support economic growth and competitiveness, particularly affecting SMEs. It is excellent that changes to lower the employment threshold are being advanced. It is also possible to reduce indirect labor costs, as unemployment insurance reforms will inevitably lower unemployment insurance premiums in the future. If this benefit were to accrue to employers and employees, the employment threshold would decrease, and purchasing power would increase.
5. Implementing the STEM Strategy
The measures of the STEM strategy, outlined in the government program, should be prioritized and initiated without delay. Teachers’ STEM competencies need to be developed, and the weekly hours of mathematics should be increased for the second grade of basic education. Learning outcomes are declining. It is necessary to investigate what is done differently in comparison countries, such as Estonia. Flexibility must be created in vocational qualifications to meet the needs of the labor market and the skill requirements of investments in batteries and hydrogen. The retraining of adult career changers and foreign professionals must be ensured so that they can enter the workforce quickly.
6. Stronger EU Advocacy
Finland’s EU advocacy needs a reboot. Finland’s current EU policies are good, but it is time to move from words to actions. We need a comprehensive approach that includes the entire EU agenda and a proactive stance. So far, advocacy has been too reactive. The government, together with the business sector, should anticipate national themes of importance that Finland wants to influence and engage in advocacy as early as possible. Competitiveness should be at the heart of EU decision-making, focusing on implementing existing legislation rather than continuous new regulations.
