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Draft budget of the Ministry of Economic Affairs and Employment focuses on promotion of employment, renewal and low-carbon economy

Ministry of Economic Affairs and Employment
Publication date 5.8.2022 10.35
Press release

Appropriations of around EUR 3.78 billion are proposed for the administrative branch of the Ministry of Economic Affairs and Employment for 2023, which is EUR 236 million more than in the 2022 budget. In connection with the implementation of the EU’s Recovery and Resilience Plan, a total of EUR 346.13 million in appropriations and EUR 101.5 million in budget authority will be allocated to the administrative branch of the Ministry of Economic Affairs and Employment.

Employment and entrepreneurship

A total of EUR 195 million is proposed for public employment and business services appropriations. This is EUR 89 million less than in the 2022 budget. The fall in the level of appropriations is mainly due to technical reasons, such as transfers of appropriations and removal of fixed-term appropriations from the budget. Despite this reduction, the amount of services will not change significantly compared to earlier years, because appropriations transferred from previous years under the item can be used to fund services in 2023. 

A total of EUR 58.5 million is proposed for measures to extend working careers of people aged 55 or over to promote their employment. From 2023, training to prepare for protection in the event of restructuring will be introduced, together with employment support for those aged 55 or over. In addition, the subsidies for payroll costs paid to municipalities for their obligation to provide employment to certain unemployed jobseekers over 57 years of age would be budgeted under the item. These subsidies are currently part of the expenditure for pay subsidy.

A budget authority of EUR 10 million is proposed for supporting regional research, development and innovation activities under the item ‘Support for business development projects’. Funding will be allocated to improve cooperation between higher education institutions and research institutes and companies. In addition, funding will be targeted to support innovation activities of small companies, SMEs operating in value networks and research-based start-ups and to speed up the utilisation of existing technologies and new solutions.

Regeneration and carbon reduction 

A budget authority of EUR 499 million is proposed for Business Finland to support research, development and innovation activities. This includes an increase of EUR 20.85 million to extend the audiovisual production subsidy in 2023. This incentive aims to attract foreign production companies to carry out their productions in Finland and to promote internationally funded projects, in particular.

EUR 315.1 million is proposed as the budget authority for energy subsidies. The budget authority includes EUR 62 million in funding of the Sustainable Growth Programme for Finland, which focuses on investments in energy infrastructures, new energy technology, low-carbon hydrogen and electrification and decarbonisation of industry. In addition, investments to improve energy self-sufficiency and security of supply will increase the authority by EUR 225 million.

EUR 150 million is proposed for aid for electrification of energy intensive industry. This aid will compensate the indirect costs caused to the price of electricity from emissions trading in sectors where the risk of carbon leakage is significant. The electrification aid aims to lower the risk of carbon leakage, ensure the cost competitiveness of industry and encourage industrial operators to develop carbon neutral production methods. The operator must use at least 50 per cent of the aid granted for development measures that contribute to making its activities carbon neutral.

Inquiries:
Piritta Jokelainen, Special Adviser to the Minister of Employment, tel. +358 29 504 7353 
Ann-Mari Kemell, State Secretary to the Minister of Economic Affairs, tel. +358 29 504 7332
Anu Jänkälä, Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 29 506 3602

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