TSI report recommends actions Finland should take to improve resilience and competitiveness of its eastern border regions

TSI report recommends actions Finland should take to improve resilience and competitiveness of its eastern border regions

A new OECD report, prepared at the request of the European Commission, sets out a roadmap to strengthen resilience, competitiveness and security in Finland's eastern border regions. The report was launched in Helsinki on 10 December.

The joint project led by OECD experts addressed the changed circumstances in Finland's eastern regions following Russia's war of aggression against Ukraine. The project also aimed to influence funding under the next programming period of the EU's regional and structural policy, known as the cohesion policy. The European Commission financed the project through its Technical Support Instrument (TSI).

"The TSI project provided by the Commission is an integral part of our endeavour to find new initiatives for boosting the growth and vitality of Finland's eastern border region. The report also supports preparations for the EU's next cohesion policy programming period, where Finland has emphasised the importance of the regions along the EU's external borders and their future prospects," said Minister of Economic Affairs Sakari Puisto at the seminar held to launch the report.

The roadmap in the TSI report links closely to the programmes the Government has launched for northern and eastern Finland. These programmes aim to fully harness regional potential for economic growth, regional vitality, investment promotion, skills development and labour availability.

The report starts from the premise that Russia's war of aggression against Ukraine has had economic and geopolitical consequences that collapsed cross-border trade and tourism, particularly in the eastern border regions. Combined with demographic pressures, this development is transforming the economy and security environment of the area.

The TSI report recommends key actions to strengthen the competitiveness and resilience of Finland's eastern border regions:

• integrate security and recovery measures into regional development,
• provide targeted funding and more flexible EU support mechanisms,
• diversify into clean energy, cybersecurity, bioeconomy, defence manufacturing and sustainable tourism,
• invest in dual-use products, energy and digital infrastructure,
• strengthen skills policies to meet sector-specific demand, and
• establish a joint coordination body to align regional actions and strengthen advocacy at national and EU level.

Despite the challenges, the report notes that eastern and northern Finland hold strong potential in technology, tourism, the green transition and, given the changing security landscape, dual-use products.

Eight Finnish regions were closely involved in drawing up Finland's application for project funding. They are Lapland, North Ostrobothnia, Kainuu, North Karelia, North Savo, South Savo, South Karelia and Kymenlaakso.

Inquiries:
​​​​​​​Lotta Laitinen, Special Adviser to the Minister of Economic Affairs, tel. +358 295 049 058 (questions to the Minister)
Johanna Osenius, Director for Regional Development, Ministry of Economic Affairs and Employment, tel. +358 295 064 937
Hanna-Maria Urjankangas, Chief Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 127