The amount of aid given through each form of support is calculated to be equivalent to grants, thus e.g. only the subsidy element of favourable loans is included in the figure. State aid to industry was at a relatively high level in Finland in the first years of the 1990s. This was mainly due to the severe depression that the country experienced at the time. It should be noted, however, that even in those years Finland was no more generous in subsidizing its manufacturing companies than the EU countries on average. The level of subsidies has been reduced since then, and it is the government s policy to continue this trend.
State aids have several different motives.
General horizontal subsidies form the bulk of aid in Finland, while regional aid dominates in the EU countries on average. General aid refers to subsidies for which all firms are eligible regardless of sector or geographical location. General aids include i.a. assistance for research and development, environmental protection, energy and investment.