Finland warns EU on excessive state subsidies harming market

In Brussels, Finland's Economy Minister Wille Rydman expressed concerns that the European Union's state aid policies, which allowed governments to provide financial support to companies during crises, have become excessive. He highlighted that these measures, initially implemented to address the economic fallout from the Covid-19 pandemic and the energy crisis following Russia's invasion of Ukraine, are leading to unhealthy competition among EU nations. Countries like Germany, Spain, and Italy are advocating for the continuation of these state aid frameworks, while Finland and Sweden are pushing for a return to stricter regulations. Rydman emphasized that the current situation undermines the integrity of the single market and could harm competitiveness in the long run. He called for a reevaluation of state aid policies to ensure they remain limited and do not favor larger economies over smaller ones. The European Commission is currently phasing out temporary aid measures, but some governments are seeking to make certain forms of aid permanent, particularly for green transition initiatives. This ongoing debate reflects a broader tension within the EU regarding the balance between supporting economic recovery and maintaining fair competition among member states.