Key themes in regional development for next government term: growth, investments and security

The Advisory Council on Regional Renewal has published its views on the regional development objectives for the next government term. Some Finnish regions will benefit from investments in industry and energy production, while others will suffer from a shrinking population and a reduced tax base. As there is not enough public funding available to cover all needs everywhere, growth must be built on regions’ own strengths.

“A decision on investment is always a decision on location. Power connections, network capacity, building sites, skilled labour and transport connections are located in certain municipalities. For this reason, regional policy means ensuring that the strengths of each region, such as energy, raw materials, competence clusters or location, are used in the most productive way possible,” says Minister of Economic Affairs Sakari Puisto, who chairs the Council.

The publication highlights four focus areas: regional segregation and the future of young people, sustainable renewal of business and industry, geopolitics and comprehensive security, and climate, environmental and energy issues. Within security, the Advisory Council emphasises energy and transport infrastructure, security of supply and resilient supply chains. In eastern Finland, the suspension of cross-border traffic has changed the operating conditions for business and industry as well as transport connections.

“The availability of energy, seamless logistics, industrial production and sustainable use of natural resources are not just business issues. They determine how Finland will be able to cope in an abnormal situation,” Minister Puisto says.

According to the report, growth opportunities are offered by the data economy and the defence industry, in particular. In order to increase investments, the Council proposes a new national service channel for the implementation of investments in Finland.