Guardians of Fair Competition: Finland’s Stand Against State Subsidies

Fair competition is essential for a healthy economy. When businesses compete on an equal footing, it drives innovation and efficiency. It also benefits consumers, who get better products and services at lower prices.

Unfortunately, state subsidies can distort competition and create unfair advantages for some businesses. This can lead to higher prices for consumers and less innovation.

Finland is a small country with a strong economy. However, we are not immune to the dangers of state subsidies. In recent years, there have been a number of proposals to introduce new subsidies or increase existing ones.

We must be careful not to follow this path. State subsidies are not a sustainable way to build competitiveness. They can lead to a loss of jobs, a decline in innovation, and a decrease in consumer welfare.

Instead, we should focus on creating an environment in which businesses can compete fairly. This means investing in education and skills, promoting innovation, and reducing regulation.

We should also be wary of proposals to give state-owned companies an unfair advantage. State-owned companies should compete on an equal footing with private businesses.

By defending fair competition, we can build a strong and sustainable economy that benefits all Finns.

Here are some of the negative effects of state subsidies:

They can distort competition: When some businesses receive subsidies, it gives them an unfair advantage over their competitors. This can lead to higher prices for consumers and less innovation.
They can lead to a loss of jobs: When businesses receive subsidies, they may be less likely to invest in new technologies or hire new workers. This can lead to job losses in the long run.

They can be a drain on the public purse: State subsidies can be expensive. The money that is used to fund subsidies could be better spent on other priorities, such as education or healthcare.
They can create moral hazard: When businesses know that they may receive subsidies, they may be less likely to take risks or innovate. This can stifle economic growth.

Here are some of the things that Finland can do to defend fair competition:

Invest in education and skills: A well-educated and skilled workforce is essential for a competitive economy. Finland should continue to invest in education and skills to ensure that our workforce has the skills they need to succeed in the global economy.
Promote innovation: Innovation is key to driving economic growth and creating new jobs. Finland should promote innovation by investing in research and development, providing tax breaks for innovative businesses, and creating a supportive environment for startups.

Reduce regulation: Excessive regulation can stifle competition and innovation. Finland should review its regulatory framework to ensure that it is not unnecessarily burdensome on businesses.

Ensure that state-owned companies compete on an equal footing: State-owned companies should compete on an equal footing with private businesses. This means that they should not receive any unfair advantages, such as subsidies or preferential treatment.
By taking these steps, Finland can defend fair competition and build a strong and sustainable economy that benefits all Finns.