EU’s Renewed Commitment to State Aid: Temporary Crisis Aid in France and Finland’s Competitive Position

France’s nearly one billion euro state aid program gains approval from the EU Commission

The European Commission has recently approved a 900 million euro French state aid program to support companies investing in renewable energy sources. This move falls under the crisis and transition period state support framework, which has temporarily relaxed state aid rules until the end of 2025. The Finnish government has emphasized the need for temporary crisis aid to avoid distorting competition and weakening the internal market.

The EU’s crisis aid has been a contentious issue for Finland, with the government adamantly advocating for temporary support only. However, discussions on the future of the internal market are ongoing, with a focus on competitiveness and attracting green and digital investments. The Finnish Confederation of Business and Industry has called for new tools to enhance Finland’s competitive position, including tax incentives and new investment instruments at the EU level.

Looking ahead, discussions on strengthening Finland’s competitive position will continue, with a proposed tax relief or exemption model to attract foreign investments. The European Council is expected to address these issues at an extraordinary summit in April, aiming to secure strategic investments for the future. The EU’s state aid rules have been extended multiple times, with a focus on promoting green technologies and transition to renewable energy sources. Former Prime Minister of Italy Enrico Letta is currently reporting to the European Council on the internal market’s future.

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