The energy transition, data centers and artificial intelligence have emerged as the engines of growth in Finland. A record number of green transition investments were secured last year, and new projects worth tens of billions of euros are waiting to be implemented. The Construction Industry Association RT reminds us that this development should not be taken for granted: the government must keep the investment environment attractive.
The Construction Industry Association (RT) expects the government to refrain from making decisions that are negative for the investment environment in its budget debate in early September. The permitting and zoning reforms must be completed and additional resources must be allocated to both permitting authorities and courts to prevent harmful bottlenecks. In addition, already promised projects must be completed, such as the clean transition investment tax credit, the restoration of the right to deduct interest on large energy investments, and tax support for data centers that utilize waste heat.
"Investments in the data economy and renewable industries based on Finland's energy competitiveness can continue well into the next decade, as long as we keep the operating environment predictable and attractive. The current economic turnaround is based on these investments," CEO of the Finnish Construction Industry Association RT Aleksi Randell says.
The amount of subsidized housing production must be secured
Privately financed housing production has still not taken off, and the number of housing transactions and the prices of old homes continue to decline. After 2022, housing starts have remained well below 20,000 homes each year. Finland needs approximately 31,000–36,000 new homes annually to support economic growth and urbanization.
The government should continue to resolutely ease the regulation of housing and housing construction financing and implement the decisions already made without delay. In addition, in order to strengthen the perspective of the real economy and growth financing, it is justified to add consideration of growth and competitiveness to the tasks of the Financial Supervisory Authority.
The authority to grant interest-subsidized loans for state-supported housing production has decreased from EUR 1,750 million (2025) to EUR 1,135 million (2026) and further to EUR 500 million for next year. The authority to grant interest-subsidized loans was allocated to the early years of the government term as a cyclical measure, which is why the authority allocated for next year is now decreasing sharply. The Construction Industry Federation (RT) considers it important that the decrease in the granting authority announced for next year is not implemented as is.
Various guarantee loan models should be developed to be more functional than they are now, so that their terms and usability better reflect real needs. EU funding opportunities to support housing production should also be explored.
"We recognize the exceptionally tight room for maneuver in public finances, which was further narrowed by the fact that interest-subsidized loans were changed to be included in the statistics as part of public debt in Finland. This should be renegotiated without delay between Finnish and EU statistical authorities," Randell states.
The renovation construction grant should be used in full and the household deduction should be restored to its previous level.
The government decided on a new fixed-term grant for the renovation of residential buildings in the spring budget session. The decree on the grant is still not in force, which is why the portion reserved for this year risks being unused, as housing companies do not have time to organize general meetings and apply for grants for their renovation projects. The unused portion must therefore be carried over to next year.
The Construction Industry Federation (RT) proposes restoring the household deduction to at least the level of 2024. The deduction is an effective way to maintain household demand for renovation and repair, as well as employment in the sector.
RT's proposals for the government's budget debate
- The investment environment should be kept predictable: permitting and zoning reforms completed and the already promised tax subsidies implemented.
- The regulation of housing and housing construction financing must be purposefully relaxed, and the tasks of the Financial Supervisory Authority must include taking growth and competitiveness into account.
- The reduction in the authority to grant interest-subsidized loans should be curbed for next year, and guaranteed loan models should be developed.
- The unused portion of the renovation construction grant will be carried over to 2027.
- The household deduction should be restored to at least the level of 2024. In addition, RT and INFRA ry have taken a position in favor of financing basic road maintenance.
Additional information
Aleksi Randell
CEO
aleksi.randell@rt.fi +358 9 129 9201Confederation of Finnish Construction Industries (CFCI)
Assistant: Lotta Räty
Lauri Pakkanen
Director, Public Affairs
lauri.pakkanen@rt.fi +358 50 522 7797Confederation of Finnish Construction Industries (CFCI)
Artificial intelligence has been utilized in creating the summary.