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The letters OULU in pink in front of Tuira, each decorated in honour of the summer and the year of the Capital of Culture.

news

22.05.2025

Declaration of the Advisory Board of Eastern and Northern Finland of 21 May 2025: Close to growth – Cohesion policy strengthens local entrepreneurship and skills

in cooperation with this declaration, the Advisory Board of Eastern and Northern Finland emphasises the importance of cohesion policy for regional development and wishes to bring forward perspectives on the Commission's proposal for a mid-term review of regional and structural policy. In addition, we raise issues related to the specificities of the EU's eastern border, which are relevant for the stability and competitiveness of the Union as a whole.

Few populations still need attention in EU policy

A key objective of cohesion policy is to reduce disparities between the levels of development of the Member States and their regions. The achievement of this objective will strengthen the stability and vitality of the Union as a whole. Cohesion policy can also support the strategic competitiveness of regions and common objectives such as the clean transition, the bio- and circular economy and overall security.

The Advisory Board considers it very important that the special characteristics of Eastern and Northern Finland – such as long distances and sparsely populated areas – remain recognised in EU cohesion policy also in the next programming period. Taking special circumstances into account is not only regional, but also in the interest of Finland as a whole. Consideration of sparsely populated areas is central to the success of Finland's cohesion policy as a whole.

Focus on local entrepreneurship and skills 

The role of small and medium-sized enterprises as drivers of regional vitality and innovation is key. Cohesion policy should continue to support industrial restructuring and knowledge-based development. It is important that trends in EU industrial policy also support regional growth and strengthen the competitiveness of the EU as a whole in a diversified way.
Investments in RDI infrastructure make it possible to aim for an increase in the level of RDI to 4% of GDP. The access of SMEs to the latest research data needs to be further strengthened. Cohesion policy plays an important role in increasing RDI intensity, especially in Eastern and Northern Finland. in cooperation without cohesion policy funds, it is impossible to raise the level of RDI.

In Eastern and Northern Finland, the availability of corporate finance is in some cases characterised by challenges due to economic uncertainty and collateral conditions, which may limit the opportunities for export growth, among other things. Tackling these bottlenecks requires coherent cooperation between the regions, the national level and the EU.

Programme changes must be implemented in cooperation within regional frameworks

The Commission's mid-term review proposes to shift 15% of regional and structural funding to new priorities: defence, strategic competitiveness, emission reductions, affordable housing, sustainability of water resources and energy transition. This requires a programme change.
The Advisory Board considers that possible financial transfers should be made in cooperation within the regional frameworks, also taking into account the needs of national measures. This will allow regions to allocate resources to those activities that have the greatest impact locally in the new policies, such as RDI infrastructures and ecosystems that support both civilian and defence needs.

Cohesion policy is above all a strategic and long-term development and investment policy. It's not crisis finance, it's an investment in a common future. The East and the North are not in need of special treatment, but of fairness in the equilibrium of circumstances and differences in development.

Involve regions in the preparation – together for more effective development

The Commission's emphasis on strengthening the role of regions in programme changes and in the future Multiannual Financial Framework (MFF) is welcome. The regions have the best local knowledge and the ability to reconcile regional and national objectives. It is therefore important to ensure the involvement of the regions both in the reorientation of existing programmes and in the planning of the new programming period. The OECD also recommends that regions play a strong role in the design and implementation of programmes.

The regions of Eastern and Northern Finland are committed to a constructive dialogue that combines common European goals in cooperation with regional development and strong local know-how.

Helsinki, 21 May 2025
Tytti Määttä
Regional Director, Northern Savonia
Heini Utunen
Regional Director, South Savo
Riikka Pirkkalainen
Regional Director, Kainuu
Anssi Lahnalampi
Director of Administration, Central Ostrobothnia
Hannu Takkula
vs. Regional Director, Lapland
Markus Hirvonen
Regional Director, North Karelia
Jussi Rämet
Regional Director, Northern Ostrobothnia

Additional information: Jussi Rämet, Regional Director, tel. +358 40 586 3877