The Ministry of Economic Affairs and Employment has granted separate funding of 2.25 million euros to alleviate the sudden structural change situations in South Karelia and Vakka-Suomi. Of this funding, 1.5 million euros is allocated to Vakka-Suomi. The decision directly addresses the needs that regional stakeholders have actively highlighted in response to the structural change. The cities of Uusikaupunki and Laitila, the Regional Council of Southwest Finland, and the Centre for Economic Development, Transport and the Environment of Southwest Finland submitted a regional structural change proposal to the ministry in the latter part of last year.
The funding is important for mitigating the effects of layoffs and dismissals at the Uusikaupunki automotive plant and for strengthening the vitality of the region. The change negotiations created a serious regional structural change pressure, to which regional stakeholders have sought solutions in cooperation.
The state funding allocated to Vakka-Suomi is directed to two key areas. Of the funding, 500,000 euros is allocated to supporting re-employment and skills development. The support enables rapid measures to assist those workers whose daily lives have been most severely affected by the structural change. The funding can be used for labor market training, joint procurement training, and skills development, among other purposes.
From the European Regional Development Fund (ERDF), one million euros is granted to strengthen the investment and growth conditions of businesses in Vakka-Suomi. The objective is to create new jobs and strengthen the sustainable vitality of the region.
The Regional Council of Southwest Finland thanks the Ministry of Economic Affairs and Employment for its rapid response and significant additional investment. The support strengthens the capacity of regional stakeholders to respond quickly to the challenges posed by the structural change. The Ministry of Economic Affairs and Employment is also preparing an application to the European Globalisation Adjustment Fund (EGF), which would provide the regions with access to even more substantial additional resources to strengthen employment and skills.
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