3 July 2022

Share of EU recovery funds will turn attitudes more negative

Finland´s share from the EU recovery (from COVID-19) funds is reduced by 300 million euros. Therefore, our share of funding is 4,2 billion euros less than our payment on the package. 

The reason for our reduced share is the economic recovery of Finland that being more positive than predicted. The basis for this conclusion is the development of the national GDP, which in 2021 increased by 3.5 percent from year 2020. 

Therefore one - e.g. the Prime Minister of our country - might think that the reduction in Finnish share is a fair decision. Unfortunately I must point out three facts. 

First, the economic growth of Finland was made by increasing its indebtedness considerably - by decisions made by a government led by the above mentioned prime minister. Second, the economic growth of Finland is predicted to slow down during the ongoing year. Third, the future of the Finnish forest industry - responsible of ca. 20 percent of the export value - has been challenged by the commission despite its high sustainability compared to other EU countries.

It should also be noted that the taxation burden on Finnish taxpayers is among the highest in EU, and increasing quickly. Therefore I would not be amazed if the attitudes among ordinary people in Finland would turn more negative towards EU in the becoming years. 

Previous thoughts on the same topic:
A Finnish Professor would raise inheritance tax up to 65 percent
A new justification is needed for environmental activists
Will an attitude lead Ukraine into EU?

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