In a recent article by correspondent Jyrki Palo, the EU stimulus package was discussed, particularly in relation to providing aid to Spain. This article brought attention to a topic that has not received much coverage in the Finnish media, despite the availability of information on the subject. The legal basis of the stimulus package has been questioned, but EU leaders made decisions within the framework of multi-year financial plans, making opposition to the package challenging.
Roughly 390 billion euros of the package’s 750 billion euro pot was allocated as grants, with the remaining 360 billion as loans. Finland’s share of the total pot is approximately 12 billion euros, depending on whether all member countries choose to take loans. The distribution of the funds among member countries has been a subject of criticism, especially due to the similar regional distribution of aid money. The bigger beneficiaries include Italy, Spain, and Eastern Europe countries relative to their populations.
Countries like Spain, Italy, and Poland are set to receive substantial sums of money, but concerns have been raised about how this money will be utilized effectively. Specific examples of how the funds will be allocated include support for tourism, industry, small and medium-sized enterprises, and digital infrastructure. Despite some modifications, much of the aid is focused on business support, renewable energy, and innovation initiatives.
It is evident from the discussions that the EU is evolving into an income transfer union, with the focus shifting towards large stimulus and sovereignty packages. Finland is expected to receive approximately 3.8 billion euros from these initiatives, including support for projects such as peat sinking. The article emphasizes the need to view discussions about additional stimulus packages in the context of the EU’s evolving role as an income transfer union.