20.08.2024
Regions at the heart of the green transition
Region Norrbotten visited Council of Oulu Region on Monday and Tuesday. We hade joint meeting on current matters in Region Norrbotten and Oulu Region.
We discussed especially about logistical cross-border connections, cohesion policy and industrial policy of the European Union.
Starting international daily train traffic between Oulu and Haaparanta
The electrification of the Laurila-Tornio-Haaparanta line will be completed at the turn of 2024–2025.
The Council of Oulu region has proposed to the Finnish government that the 2025 budget should include funding to start international daily train traffic between Oulu and Haaparanta. 2.1 million euro should be allocated to the state budget to the purchase service contract of the Ministry of Transport and Communications from 2025.
Opening passenger traffic across the border would enable the development of tourism, and the rail connection would also serve the Bothnian arc working area.
European Capital of Culture year 2026 in Oulu and in the region would also greatly benefit for better train connection to Sweden.
Northern Sparsely Populated Areas and cohesion policy
The most important goal in EU cohesion policy is to preserve the special role for Northern Sparsely Populated Areas.
In addition to the importance of traditional cohesion policy, new funding and implementation needs can also be identified in cohesion policy. The problem with fully utilizing the Recovery and Resilience Fund, RRF, is that it has been done at the expense of regions. RRF is centrally managed, and state led. Instead of national implementation, development should continue to be regional.
Cohesion policy supports the EU’s single market. The EU’s internal market is a common market of 450 million consumers, where goods move freely.
This represents 60% of Finland’s exports go to the internal market area.
The EU must also consider the situation of the EU’s eastern border. The loss of cross-border funding should be compensated for the Eastern Finland on EU external border.
Increasing cooperation between Norrbotten and Oulu regions on joint initiatives
In the discussion proposals to submit joint proposals for EU funding on areas of mutual interest in industrial development was also raised. These includes regional hydrogen valleys at the Bothnian Arc, Mining and extraction of critical minerals and chips and wireless technology.
Both regions have significant heavy industry such as SSAB in our regions.
Finland and Sweden with Nokia and Ericsson companies are the global leaders in 5G- ja 6G- development together with Chinese Huawei.
Socio economic impacts in green transition in the Region Norbotten
Region Norrbotten has published report “Socio economic impacts in green transition”. Main message of the report was, that the new industrialisation in the region increase national level GDP by 2-3 %, tax income by 1,5 – 3,5 billion euros and export value by 10 billion euros. It provides new jobs, and it will significantly reduce carbon dioxide emission.
The effects on the regional economy are enormous, but also need for new housing and infrastructure are big. New industrialisation also means sharp increase in demand of energy.
During the summer, the Swedish government published its own Northern Sweden strategy.
Link to English report of Norrbotten’s industrial transition and its socio-economic impacts.
