Southwest Finland is seeking solutions for the 2027–2031 government term that strengthen sustainable growth, competitiveness, security and resilience across Finland. The region’s government programme objectives place particular emphasis on transport and logistics connections, security of supply, improving the state of the Archipelago Sea, and growth driven by expertise, research and investments.
Southwest Finland Builds Growth, Security and Western Connections for Finland
Southwest Finland is one of Finland’s key economic and growth regions. A significant share of the country’s population, business activity and economic value creation is concentrated in the region. Located at the heart of the Baltic Sea region, Southwest Finland serves as Finland’s gateway to the West and forms an integral part of the Northern European core transport network corridor.
The region’s importance for security of supply and comprehensive security has become increasingly significant due to the changing security situation in Europe and the closure of Finland’s eastern border. Well-functioning connections along the western coast are strategically essential for Finland’s foreign trade and crisis resilience.
Southwest Finland’s strengths include a diverse economic structure, a high level of education and research capacity, strong maritime and health technology clusters, a developing food and bioeconomy sector, and the internationally unique Archipelago Sea.
During the next government term, the Government Programme must recognise Southwest Finland’s role as a platform for economic growth, a guarantor of western connections, and a driver of the green transition. This requires targeted investments in transport infrastructure, expertise, research, development and innovation (RDI) funding, and measures to improve the state of the environment.
Southwest Finland serves as Finland’s gateway to the Nordic countries and Europe. Through its ports and the Helsinki–Turku–Stockholm corridor, Finland is connected to the Nordic economic area and European markets. Developing the ports of Southwest Finland and their hinterland connections is critical for the security of supply of the entire country.
Strengthening Finland’s accessibility requires an integrated and sufficiently high-capacity rail network across the growth triangle of Helsinki, Tampere and Turku. Rail investments in Finland’s growth centres must be recognised as a single strategic entity that improves labour market efficiency and productivity, supports business investments, and enables the full utilisation of EU transport funding. The rail network of the growth triangle also supports efforts to reduce transport emissions.
The state bears the primary responsibility for the national transport infrastructure network, and municipalities’ financial contributions to road and rail projects must not be increased. The Government must ensure an adequate level of transport development funding through a separate programme reinforcing the financing of the national Transport 12 Plan. In public transport investments in major urban regions, the state funding share should follow the 30 per cent principle. At the same time, the original purpose of MAL agreements must be upheld: integrating land use, housing and transport as a tool for sustainable growth. To increase the share of sustainable mobility, the Government must secure the conditions for walking and cycling as part of the transport system.
Several key projects in Southwest Finland are located along the Scandinavian–Mediterranean core network corridor of the European TEN-T network, and making full use of this status is essential. Projects included in the TEN-T core network must be completed by 2030, and projects within the extended core network by 2040.
The Helsinki–Turku–Stockholm Corridor as Part of the Nordic Growth Corridor
The Government will strengthen Finland’s western connections by developing the Helsinki–Turku–Stockholm corridor as part of a Nordic growth corridor extending to Oslo. Based on the preliminary study to be completed by the Finnish Transport Infrastructure Agency in 2027, the Government commits to advancing further planning, assessing the economic impacts of the corridor, and seeking a joint Nordic status for the corridor together with Sweden and Norway.
The Turku–Stockholm connection has been identified as one of the four key transport links serving both civilian and military purposes in the Nordic joint transport system strategy for preparedness. The connection will strengthen Finland’s integration with Sweden and the wider Nordic region, while enhancing interaction between labour markets, businesses and innovation hubs. The objective is to create a unified economic area of approximately seven million inhabitants.
At the EU level, Finland aims to have a fixed Turku–Stockholm connection included in the TEN-T core network as part of the 2028 regulation revision, enabling the project’s strategic importance and opportunities for EU funding to be fully utilised.
Investment Decision and Implementation of the Second Phase of the West Rail Project
The Government commits to the West Rail project and will make an investment decision on the second phase of the project. Following the first phase, construction will continue with a new rail alignment between Salo and Lohja, as well as additional double-track sections between Turku and Salo.
The West Rail project is the most significant infrastructure investment in Finland’s growth region. It will create a reliable and fast connection between two major growth centres and expand the labour market area of Southern Finland to more than 1.5 million people. The full benefits of the project can only be realised once both phases have been completed.
The estimated cost of the second phase is approximately EUR 1.7 billion. The project will benefit from its status within the extended core network of the TEN-T transport network, under which projects may receive up to 50 per cent of their funding through the Connecting Europe Facility (CEF). The West Rail project forms part of the Helsinki–Stockholm transport corridor. Its implementation will strengthen the functionality, security of supply and resilience of Finland’s westbound transport system as a whole.
Launching Regional Commuter Rail Services in Southwest Finland
During the government term, regional commuter rail services will be launched in Southwest Finland as part of the state-subsidised passenger rail services to be renewed in 2031. Services will be introduced in phases on all four rail corridors from Turku to Uusikaupunki, Loimaa and Tampere, Salo, and Naantali. Following the pilot implemented between 2028 and 2030, the long-distance rail connection to Raisio will continue as a publicly purchased service if commercial operations do not continue on market terms.
Southwest Finland is Finland’s third largest region and the only region in Southern Finland without any state-supported regional passenger rail services. The Government will address this imbalance by extending state support for regional passenger rail purchases to Southwest Finland as part of the service procurement model starting in 2031.
The development of a sustainable transport system in Southwest Finland is based on a region-wide public transport network connecting regional centres with Turku and long-distance rail services. Regional rail transport supports the expansion of commuting areas, strengthens business competitiveness and promotes low-emission mobility.
Modernisation of the Turku–Uusikaupunki Railway
The Government will designate the modernisation of the Turku–Uusikaupunki railway as a national priority project for security of supply. The railway is included in the Finnish Transport Infrastructure Agency’s prioritised investment programme, has been identified as one of the most urgent repair projects within the rail network, and is ready for implementation from a planning perspective. The modernisation must be carried out without delay to ensure the safety and operational reliability of the line.
The Uusikaupunki railway serves major industrial and port operations, as well as the transport of hazardous materials. In particular, the fertiliser plant and port in Uusikaupunki form a key hub for domestic food production and Finland’s security of supply. Ensuring the operational reliability of the railway is essential for national security and preparedness for emergency conditions.
The modernisation will also support green transition investments and create the conditions for launching passenger rail services between Turku and Uusikaupunki. The estimated cost of the project is EUR 162 million. In addition, the state must participate in the joint financing of station and stop infrastructure along the route together with the municipalities located along the railway corridor.
Development of the Naantali Railway
As part of the development of Southwest Finland’s rail network, the Naantali railway will undergo modernisation and electrification. The Port of Naantali is one of Finland’s key hubs for freight transport and energy supply, and upgrading the railway is essential for securing port operations, industrial transport and investments related to the green transition.
The development of the Naantali railway will enable regional rail services on the Naantali–Turku–Tampere corridor as well as the continuation of long-distance rail services from Helsinki to Naantali in accordance with the MAL agreement. The investment complements the modernisation of the Turku–Uusikaupunki railway as part of an integrated development package and creates the conditions for launching passenger rail services on one of Finland’s most economically viable new rail connections (Salo–Turku–Naantali).
The project is ready for implementation, and its estimated cost is EUR 19 million.
Development of the E18 Turku ring road between Naantali and Raisio
The section of the Turku Ring Road (Regional Road 40 / E18) between Naantali and Raisio requires expansion to four lanes and improvements to junction capacity and traffic flow. The project forms part of the broader development of the Turku Ring Road and continues the ongoing improvements in the Raisio town centre area.
The road plan is currently in the approval process, and the project will be ready for implementation in 2027. The estimated cost of the project is EUR 269 million. Traffic volumes between Naantali and central Raisio reach up to 18,000 vehicles per day. The project is part of the European TEN-T core network corridor, whose service level must meet the required standards by 2030.
The project can be implemented in phases. The most critical sections from the perspectives of traffic flow and safety, such as the grade-separated interchanges at Ruonantie and Armonlaaksontie, can be carried out during the first phase. The preliminary estimated cost of this interchange project is approximately EUR 25–30 million.
Improving the safety and traffic flow of Highway 8
Ensuring smooth traffic flow on the busy route connecting the ports of Finland’s west coast requires replacing the at-grade intersection between Highway 8 and Regional Road 43 in the centre of Laitila with a grade-separated roundabout interchange. The five ports located between Turku and Pori, the absence of a railway connection, and the heavy freight and commuter traffic increase the urgency of the project. The traffic volume at the centre of Laitila is approximately 8,000 vehicles per day, with a high proportion of heavy traffic. The road plan for the project was approved in 2025, and the project is ready for implementation. The estimated cost of the project is approximately EUR 48 million, and it is considered economically viable based on its cost-benefit ratio. In addition, improving the operability of Highway 8 requires advancing the plans for the Mynämäki section and the Mynämäki–Nousiainen stretch during the current electoral term.
Improving Highway 9 as a Key Transport Corridor within Finland’s Growth Triangle
Highway 9 is a major inland transport route and an important freight corridor for export industries connecting to the ports of the Turku region. The section between Lieto and Aura is one of the most deteriorated and hazardous parts of the main road network within Finland’s growth triangle. The following priority projects on Highway 9 must be implemented in a phased order: upgrading the wide-lane road section between Lieto station and Aura into a four-lane highway, constructing three overtaking lane sections between Aura and the Humppila border in Loimaa, and building a grade-separated interchange in Aura.
Road plans for the four-lane upgrade and the overtaking lane sections have already been completed. The road plan for the Aura interchange will be finalised in autumn 2027. The estimated cost of the four-lane upgrade is EUR 67 million. The overtaking lane sections can be implemented in phases, with estimated costs of EUR 16.3 million, EUR 23.0 million and EUR 32.0 million respectively.
Implementation of the Second Phase of the Eastern Bypass of Salo
The purpose of the improvement project for the Eastern Bypass of Salo, Regional Road 52, is to redirect through traffic away from the street network in central Salo and improve transport connections for businesses and industry. The first phase of the project, between Perniöntie and Road 110, was completed in 2016.
The second phase covers the section between Somerontie and Road 110. The road plan was completed in 2025, and the project is ready for implementation. The estimated cost of the project is approximately EUR 85 million.
Improving the Capacity and Safety of Highway 10
Highway 10 is an important part of the transport network of Southwest and Southern Finland and serves as a key connection between two regions. Traffic volumes on the highway are particularly high between Turku and Lieto, with average weekday traffic reaching approximately 14,000 vehicles per day between the Turku Ring Road and central Lieto. Capacity constraints on the road cause congestion and create traffic safety concerns.
A land use reservation plan is currently underway for the four-lane upgrade of the highway between Regional Road 40 (the Turku Ring Road) and Loukinainen in Lieto. The road plan, and if necessary a preliminary general plan, can be initiated in 2027. The estimated cost of preparing the road plan is approximately EUR 1 million.
Developing Archipelago Transport and the Archipelago Trail
Archipelago transport services are a nationally significant public service funded and organised by the state. Functional connections are essential for maintaining permanent settlement in the archipelago, ensuring the continuity of local livelihoods and enabling the sustainable growth of tourism. The majority of Finland’s ferry crossings are located in the Turku Archipelago, and the Archipelago Sea is served by an extensive network of commuter and connection vessels. Securing sufficient funding for archipelago transport is essential in order to maintain the service level and respond to growing demand, particularly during the tourism season.
In Southwest Finland, walking and cycling are a key part of the sustainable transport system and the promotion of sustainable tourism. Improving traffic safety requires investment in regional cycling routes as well as the further development of the Archipelago Trail and the Small Archipelago Trail. These routes are nationally significant tourism destinations whose development supports year-round tourism in the archipelago, strengthens local business activity and promotes sustainable mobility. In Pargas and Naantali, projects related to the Archipelago Trail are ready for implementation, with a total funding requirement of approximately EUR 10 million.
In Pargas, the ferry connection between Houtskär and Kivimo can be cost-effectively replaced with a bridge. Replacing the short ferry crossing with a bridge would improve traffic flow, safety and security of supply, while also reducing operating costs. The road plan for the project is ready for implementation, and the estimated cost is EUR 11 million. The project is included in the Finnish Transport Infrastructure Agency’s investment programme and has been assessed as economically viable in terms of its cost-benefit ratio.
Strengthening the Competitiveness and Accessibility of Ports
The fairway dues system must be comprehensively reformed so that the basis for the charges better reflects the actual use of fairways and icebreaking services. Alternatively, the Government will examine separating icebreaking costs from fairway dues and allocating these costs according to the polluter pays principle. The introduction of remote pilotage must also be enabled. These reforms will ensure fair competition between ports and safeguard the functionality of Finland’s key western transport connections.
The ports of Southwest Finland form a critical hub for Finland’s foreign trade and western connections. However, the current fairway dues system places the region’s ports at a competitive disadvantage. More than half of the fairway dues paid by vessels consist of icebreaking costs, even though the need for icebreaking services in Southwest Finland’s ports is very limited. At the same time, vessels calling at these ports incur pilotage costs for long archipelago routes based on travel distance rather than the actual cost of providing the service.
In addition, the Government aims to extend the TEN-T core network to ports themselves, not only to urban centres. The Government will also ensure that the next revision of the EU military mobility criteria takes into account the specific conditions of the Baltic Sea region, so that requirements related to fairway depth and quay length do not exclude ports from EU funding opportunities.
Safeguarding the strategic position of Turku Airport
In addition to Helsinki Airport, Turku Airport is Finland’s second airport included in the TEN-T core network. Measured by international passenger traffic, it is Finland’s fourth busiest airport. All commercial traffic at the airport operates on market terms. More than half a million people live within one hour’s travel time from the airport, and nearly 300,000 passengers pass through the airport annually. Turku Airport has a significant regional economic impact.
The Government will secure the role of Turku Airport as a strategically important airport as part of the reform of Finland’s national airport network. In addition to serving regional business life, tourism and international accessibility, the strategic importance of Turku Airport is linked to public authority functions and comprehensive security. The airport plays a key role in border security, maritime rescue operations and cooperation between authorities, and its around-the-clock operational capability is essential in both normal conditions and emergency situations.
Good air connectivity is also a prerequisite for tourism growth. More than two million tourists visit the region annually. Tourism revenue, currently amounting to approximately EUR 500 million, is expected to more than double over the next ten years. Turku Airport also serves as an alternate airport for Helsinki Airport and is therefore an essential part of the operational reliability of Finland’s entire air transport system.
2. The Archipelago Sea and the Green Transition
The Southwest Finland archipelago is the largest in the world in terms of the number of islands, and the Archipelago Sea is an exceptionally valuable ecological, economic and cultural area for all of Finland. Maintaining the vitality of the archipelago requires improving the condition of the Archipelago Sea. A clean Archipelago Sea enables the renewal of tourism and local livelihoods, strengthens underwater biodiversity, improves conditions for fishing and creates a foundation for the green transition.
The Archipelago Sea is the most eutrophied and environmentally degraded marine area along Finland’s coastline and Finland’s only remaining hotspot site on the Baltic Marine Environment Protection Commission HELCOM list. Diffuse agricultural nutrient loading within the catchment area is one of the sea’s most significant environmental pressures. Improving water quality and reversing eutrophication require scalable solutions and the cost-effective targeting of funding to high-risk areas.
Improving the condition of the Archipelago Sea is a national environmental and regional vitality mission. Water protection is also climate action, and the work supports the green transition particularly through strengthening the sustainability of the food system and improving nutrient recycling. The shared sustainability objective is a closed nutrient cycle combined with profitable agriculture.
In Southwest Finland, the green transition represents a broad industrial, energy and economic transformation affecting the entire region. The region plays a central role in Finland’s transition towards a carbon-neutral future, a hydrogen economy and more resilient industrial production. Achieving this transition requires securing the conditions for investments and resolving bottlenecks in electricity transmission capacity.
Southwest Finland aims to become a carbon-neutral region by 2035. Achieving climate objectives requires long-term cooperation between the state, regions and municipalities, shared commitment and the prioritisation of effective measures.
Continuing the Archipelago Sea Programme Beyond Government Terms
The Government commits to continuing the Archipelago Sea Programme and securing its funding beyond individual government terms. Reducing nutrient loading to a sustainable level requires more effective steering mechanisms and the cost-efficient targeting of resources.
Improving the condition of the Archipelago Sea and removing diffuse agricultural nutrient loading from the list of the Baltic Sea’s largest pollution sources are among Finland’s key objectives for saving the Baltic Sea. According to the National Audit Office of Finland, existing steering mechanisms and funding for water and marine management have not produced the desired results in reducing nutrient loading.
The Government will ensure that measures already piloted and proven effective within the Archipelago Sea Programme are established as permanent practices and scaled up for wider use. During the next government term, the Government must earmark and double the programme’s funding. In addition, research infrastructure related to the Archipelago Sea must be strengthened, and opportunities for business participation must be expanded.
As part of the Archipelago Sea Programme, the Government will continue and establish funding for gypsum treatment in the Archipelago Sea catchment area beyond 2028. In addition, gypsum treatment must be made possible on organic farmland, and support schemes for structural lime and wood fibre treatments must be extended to fields where gypsum treatment is not suitable.
Designating the Archipelago Sea Catchment Area as a Strategic Special Area in Finland’s NRP Programme
The Government will designate the Archipelago Sea catchment area as a strategic special area within Finland’s National and Regional Partnership Plan for 2028–2034 (NRP Programme). Agri-environmental payments will be increased and targeted, based on data-driven criteria, to the most polluting agricultural plots representing approximately 15 per cent of total arable land area. This will ensure that funding is allocated cost-effectively to areas where the environmental impact is greatest. The targeting of support will be based on existing risk data, including erosion sensitivity, models for targeting winter vegetation cover, and gradually expanding nutrient data.
The disclosure of plot-specific nutrient data will be a prerequisite for receiving higher support levels. Measures eligible for increased support include organic farming, genuine winter vegetation cover, buffer zones, catch crops, crop rotation, increasing organic matter in soil, improving field water management, nutrient recycling, and promoting the transfer and processing of manure.
The agricultural support system and agri-environmental payments will in future be developed in accordance with performance-based principles.
Launching a Natural Value Market Pilot in the Archipelago Sea Catchment Area
The Government will launch a pilot project in the Archipelago Sea catchment area to identify and restore the most environmentally burdensome agricultural areas on a voluntary basis, and to acquire these areas for temporary or permanent water protection and nature conservation use. The pilot will be based on the Danish model, where nutrient loading is reduced through land use changes, particularly in coastal and catchment areas where environmental benefits are greatest.
The pilot will be implemented using catchment-area-specific loading and risk data, with the objective of achieving permanent reductions in nutrient loading, strengthening biodiversity and supporting climate change adaptation. The state will allocate dedicated funding for the pilot and will be responsible for national coordination of the model in cooperation with regional actors. State pilot funding will serve as seed funding for a further-developed fund primarily based on private financing.
The results of the pilot will be used to expand the operating model to other nutrient-loaded coastal areas and additional habitat types.
Strengthening Biodiversity and the Management of Traditional Biotopes
The Government will strengthen biodiversity by continuing and providing long-term funding for the Helmi Habitats Programme, the Municipal Helmi funding scheme and the METSO Forest Biodiversity Programme as part of the national restoration plan currently under preparation. The long-term objective is to halt biodiversity loss and improve the condition of habitats by 2050. The Archipelago Sea and its catchment area are home to a nationally significant concentration of endangered habitat types and species whose condition requires immediate improvement.
The Government will reverse the negative impacts caused by previous policies on endangered traditional biotopes by strengthening their management and continuity, enabling longer-term management agreements, including for grazing, and creating a more flexible support system. The area of managed traditional biotopes has declined sharply in recent years because the current national agricultural support system does not adequately support biodiversity values. The forthcoming NRP Programme provides an opportunity to address this challenge.
Finland’s Commitment to Green Hydrogen and Ammonia Production
Finland commits to a controlled and phased transition from imported ammonia to green, domestically produced ammonia. This transition will strengthen the security of supply for food production, industry and transport. Domestic ammonia production will improve Finland’s self-sufficiency in fertiliser production.
Developing domestic green ammonia production is essential for reducing Finland’s dependence on imports from countries involved in war or located in geopolitically unstable regions. The strategic importance of the planned green ammonia production plant in Naantali, the only facility of its kind planned in Finland, must be recognised as part of this transition.
In addition to supporting energy investments, state aid and risk-sharing mechanisms must also be directed towards the use of ammonia as a fertiliser. Support policies and regulation must enable the emergence of a market for green ammonia during the transition phase, when the raw material is not yet cost-competitive with fossil-based alternatives.
Strengthening Electricity Supply and Transmission Capacity in Southern Finland
The Government will secure electricity supply in Southern Finland and create the conditions for green transition investments by prioritising the development of the national transmission grid in Southwest and Southern Finland and by streamlining permit procedures related to transmission network investments. Regulation must ensure a predictable and economically viable investment and operating environment.
Southwest Finland is a key investment area for industry, the hydrogen economy and data-intensive solutions, but limitations in the transmission grid capacity are constraining growth. In developing the national grid, priority must be given to connections linking electricity production along the western coast to the growth centres of Southern Finland. In Southwest Finland, the most urgent development project is the Lieto–Raisio transmission grid connection. The next major development needs concern the Rauma–Uusikaupunki–Raisio and Lieto–Salo–Virkkala transmission grid connections.
The Government will also review and update the legislative framework governing the electricity market to enable offshore wind power generated in the territorial waters of Åland to be connected to mainland Finland’s national grid. This is of critical importance for securing electricity supply in Southwest Finland and other high-consumption areas of Southern Finland.
Securing Permanent Funding for Maritime Spatial Planning in Finland’s Coastal Regions
Under the Land Use Act, the Regional Councils of Finland’s coastal regions have been assigned a statutory responsibility for maritime spatial planning without dedicated state budget funding. Maritime spatial planning for Finland’s eight coastal regions is coordinated by the Regional Council of Southwest Finland. At present, the work is financed through project-based funding.
The importance of maritime spatial planning is increasingly emphasised in the EU’s new maritime policy guidelines, and forthcoming EU policies will place new demands and challenges on maritime spatial planning. The state must allocate sufficient permanent funding to the Regional Councils of the coastal regions to ensure the implementation of maritime spatial planning tasks.
Adequate national resources must be secured for preparedness planning and post-incident response related to oil and chemical spills in marine areas.
3. Vibrant Southwest Finland
Growth in Southwest Finland is built on strengthening industrial ecosystems, high-level expertise, research and innovation activities, and international connectivity. The region is experiencing positive migration and rapid growth, where business investments, high-quality education and well-functioning labour markets support Finland’s overall economic growth, competitiveness and capacity for renewal.
In Southwest Finland, industrial growth is outpacing the national average, companies’ RDI investments are increasing strongly, and sectors such as the maritime industry, health technology, artificial intelligence, smart manufacturing and the food system form nationally and internationally significant centres of expertise. The region’s strengths are also closely linked to comprehensive security, the strengthening defence and dual-use industry, security of supply and the green transition.
A key factor in sustaining this positive development is ensuring that education, research and innovation policy, labour policy, and regional development funding and support systems are increasingly guided by effectiveness and impact. Resource allocation must be based on labour market needs, the conditions for innovation activities and the actual development stage of regions.
Strengthening growth requires effective higher education and RDI solutions, clear talent pathways from vocational education to higher education, the development of lifelong learning, stronger financial capacity for municipalities and employment regions, better integration of international talent into Finland, and a regional development policy that supports growth, investments and the management of structural change also in Southern and Western Finland.
Higher Education and RDI Policy that Drives Growth
The Government will strengthen the role of higher education and research, development and innovation (RDI) activities as the foundation of Finland’s economic growth, competitiveness and capacity for renewal. The Government remains committed to the parliamentary RDI target and to maintaining index-linked core funding for higher education institutions. From the perspective of growth, it is essential that the implementation of the national higher education vision guiding higher education and RDI policy is based on directing resources according to competence needs, performance and impact.
The allocation of higher education study places, core funding and RDI investments must correspond to student demand in growing regions, labour market needs, changes in the economic structure and the strengthening of centres of expertise. In growing regions, investments in competence and education most effectively support rising educational attainment, the availability of skilled labour, business-driven innovation and the commercialisation of technologies.
The higher education system will be developed with a focus on raising the level of education, improving the quality and impact of research, and avoiding unnecessary administrative reforms that consume resources. The value chain between research and business will be strengthened so that RDI investments more systematically lead to commercially viable and scalable solutions.
The funding model for higher education institutions will be simplified and its steering effects clarified. At the same time, the Government will strengthen the capacity of higher education institutions and regional RDI actors to utilise competitive EU research and innovation funding as part of Finland’s growth and international impact.
Raising the Competence Level of the Maritime Industry
The Government will strengthen technical education and research in the Turku region as well as the research entities formed by higher education institutions in the maritime sector. The Government will increase the number of study places and fast-track education pathways in critical areas of maritime expertise, enable flexible education models for working professionals and career changers, and strengthen joint education programmes between higher education institutions, vocational education providers and companies. The Government will ensure the continuity of RDI funding directed to the maritime industry and support the development of strong ecosystems in sustainable maritime transport, smart manufacturing and Arctic marine technology.
Maintaining the competitiveness of the maritime industry and retaining production in Finland require long-term investments in expertise, RDI activities and workforce availability. The sector’s strong order books, including the long-term framework agreements of the Turku shipyard, icebreaker projects at the Rauma shipyard, and the strong growth of the shipyards in Teijo and Uusikaupunki, demonstrate the international competitiveness of Finland’s maritime industry and the need to secure the continuation of this positive development.
The Government will strengthen the maritime cluster covering the whole of Southwest Finland and launch development programmes for maritime comprehensive security and the low-altitude economy, with a focus on strengthening research and testing environments and removing legislative barriers.
Strengthening Medical Research and a Women’s Health Innovation Hub
The decline in basic research funding and the number of clinical drug trials in recent years has weakened the impact of health sector research and innovation activities, Finland’s international competitiveness and attractiveness as an investment environment, as well as patients’ access to new treatments. To address this situation, the Government will strengthen funding for both basic and applied research, reassess the effectiveness of current funding instruments and incentives, and increase both the quantity and quality of clinical drug trials. The allocation of public R&D funding will prioritise the strategic focus areas identified by the Research and Innovation Council.
The Government will improve the efficiency and predictability of permit procedures by accelerating the national implementation of the EU Clinical Trials Regulation, ensure the secure research use of health and biobank data, and strengthen physician–scientist training. The integration of research and healthcare will be reinforced by deepening cooperation between universities and university hospitals, while the full role of wellbeing services counties as enablers of research will be strengthened by increasing dedicated research funding for university-level wellbeing services counties.
The Government recognises the promotion of women’s health as one of Finland’s future growth and export sectors. An internationally significant centre of expertise in research, diagnostics and health technology will be built around the Women’s Health Hub Finland initiative, with the resources necessary to support its operations. The hub will build on the strong existing ecosystem and global anchor companies in the Turku region. Women’s health represents a major unmet global need to which Finland can respond through innovation policy, export promotion and development policy instruments.
The Archipelago and Events Will Double Tourism Revenue
The Government will support the development of sustainable archipelago tourism and tourism infrastructure, accelerate investments by tourism companies and improve the accessibility of archipelago areas. The key priorities are promoting year-round tourism and strengthening the visibility of the archipelago, with the objective of doubling tourism revenue and establishing a strong position for the region as part of Finland’s tourism exports.
As a continuation of the national tourism strategy, the Government will prepare a concrete growth programme to strengthen tourism investments, international accessibility and sustainable growth. The programme will focus on tourism growth destinations identified in Finland’s tourism marketing, with the Turku Archipelago as the primary target area. The programme’s main objectives are to promote year-round tourism and enable seamless travel chains. Accelerated development of archipelago tourism will be supported through higher investment aid levels for companies due to long distances, transport and logistics costs, seasonality and fragmented infrastructure.
In addition to the archipelago, Southwest Finland’s international attractiveness is strengthened by significant cultural, sports and architectural destinations as well as Turku’s status as a historic and European city of culture. The Government recognises Turku’s cultural attractions and international events, such as the Paavo Nurmi Games and Ruisrock, as well as other key regional attractions including the Paimio Sanatorium, as major drivers of tourism revenue, international visibility and regional vitality.
Immigration and Integration as Support for Workforce Availability
Economic growth, security of supply and regional vitality in Southwest Finland require sufficient access to labour. Internationalisation is a key competitiveness factor for Southwest Finland, and immigration policy must support the ability of skilled professionals and workers to settle in Finland and integrate quickly into working life and society.
The Government will amend the exemption rule related to permanent residence permits so that it applies not only to holders of a higher university degree, but also to those who have completed a university of applied sciences degree in Finland. The integration of international talent into the labour market will be strengthened by supporting career guidance and employer cooperation within higher education institutions, enabling international professionals to begin language studies before arriving in Finland, and developing recruitment and internship support models for companies.
The Government will direct funding for integration training towards work-integrated education models and enable more flexible pooling of funding between employment regions, municipalities and higher education institutions.
The Government will assess and address the impact of family reunification income thresholds on workforce availability. Excessively high income requirements make permanent settlement more difficult and increase workforce turnover, particularly in sectors where salary levels are moderate but labour needs are critical, such as agriculture and the food industry.
Strengthening the Financial Sustainability and Investment Capacity of Municipalities
The Government will comprehensively reform the system of central government transfers to local governments to ensure that municipal funding corresponds to statutory responsibilities and demographic changes. The Government will strengthen municipalities’ investment capacity and financial resilience so that investments supporting vitality, infrastructure and growth can also be implemented during economic downturns. The state must ensure that any new responsibilities imposed on municipalities are fully funded and that decisions affecting municipal finances are assessed as a whole. The Government will clarify the funding system so that the division of responsibilities between municipalities, state steering and wellbeing services counties is transparent and coherent.
Part of the calculated costs used in determining central government transfers is based on the archipelago status of municipalities. The reform of the Archipelago Act has updated the legislation to reflect the changed operating environment, but the reform remains incomplete due to the failure of the broader central government transfer reform. The Government will ensure that the Archipelago Act and the classification criteria related to archipelago status are fully taken into account in the central government transfer system, and that funding is transparently allocated to municipalities and regions where archipelago conditions create genuine and permanent additional costs for organising services.
Reforming Regional Development Funding and the Regional Aid Map
The Government will reform the national funding system for regional development and the regional investment aid scheme for businesses. The Government will influence EU regional aid policy to increase the effectiveness of funding and prevent distortions in competition between regions. Regional development and support needs must be assessed on the basis of actual economic and labour market conditions, rather than solely on sparse population density or rigid NUTS regional classifications that fail to reflect internal regional differences in development and population density. By placing greater emphasis on the effectiveness of structural funds, stronger benefits can be generated for the national economy.
Regions themselves have the best understanding of regional conditions and the most effective development measures. Regions must therefore play a strong role in allocating regional development funding. Funding should be directed directly to the Regional Councils, which have the statutory responsibility for regional development.
The current differentiated levels of business investment aid, based for example on sparse population and geographical location, should be phased out, as they distort competition between companies. If regionally differentiated aid intensities continue to be used, higher aid levels must also be made available for structural change regions in Southern and Western Finland. The specific conditions of archipelago areas must also be separately recognised.
The Government will strengthen the national mandate to allocate and revise support areas during programme periods in situations of sudden structural change, and will influence EU state aid regulation and its interpretation to ensure that regional aid supports balanced regional development throughout Finland.
Reforming the Employment Services System
The financing model for unemployment benefits, the rigid structure of the service system and the limited availability of services for people in the weakest labour market position have created challenges for municipalities in implementing the employment services reform. The so-called incentive-based financing model for unemployment benefits is placing significant pressure on municipal financial sustainability. Current legislation governing statutory services does not sufficiently support the development of local solutions or the cost-effective targeting of services. Municipalities also lack adequate tools to support jobseekers who have been unemployed for long periods. The employment-promoting services defined in the current legislation are too limited to effectively support those in the most vulnerable labour market positions.
The Government Programme will include a corrective reform package for the employment services system. The financing model for unemployment benefits will be revised to ensure greater fairness in relation to cyclical economic risks and structural unemployment factors. Municipalities will be given greater flexibility in organising services and targeting them to jobseekers who benefit most from them. Services for employment service clients in particularly challenging labour market situations will be safeguarded.





