30.09.2021
The decision on EU regional and structural policy funding secures the continuity of development work in Northern Ostrobothnia
At its meeting on 30 September 2021, the Ministerial Committee on Economic Policy outlined the regional distribution of funding for the EU's regional and structural policy programme Renewable and Skilled Finland 2021-2027. In the coming programming period, the relative share of Northern and Eastern Finland in funding will decrease slightly compared to Southern and Western Finland.
The 2021-2027 funding comes from three funds: the European European European Regional Development Fund (ERDF) (ERDF) (ERDF), the European European European Social Fund Plus (ESF+) Plus (ESF+) (ESF+) and the Just Transition Fund (JTF).
From the point of view of Northern Ostrobothnia, the financing solution has both pros and cons. Northern Ostrobothnia will continue to receive the largest regional and structural policy funding from the regions, EUR 317 million, including EU and national contributions. The EU contribution covers €249.4 million of funding. As a significant weakening, Northern Ostrobothnia will face a cut of up to EUR 86 million in the European European European Regional Development Fund (ERDF) (ERDF). This is a weakening of the region's research, development and innovation activities and the financing of business subsidies.
For the new JTF, Northern Ostrobothnia, as a peat region, will receive the nation's largest pot, up to EUR 106 million. This represents 20% of Finland's funding. The JTF is intended to alleviate the negative effects of the decline in peat use on the regional economy and employment. The use of the county's JTF funding is outlined in the county's Just Transition Plan, which is currently being prepared under the leadership of the Regional Assembly of Oulu Region.
The Regional Director of Northern Ostrobothnia, Pauli Harju, considers the level of funding to be reasonable from the perspective of Northern Ostrobothnia, but there are threats related to the usefulness of the money.
“The risks relate in particular to the usefulness of the Just Transition Fund (JTF) money. A national solution for the allocation of core funding will be needed in the future to better manage risks", Harju says.
The Renewable and Skilled Finland 2021-2027 programme will be approved by the Government during October and submitted to the European Commission for approval. The programme is expected to start in November 2021.
