Government Launches Pilot for Special Economic Zone in Eastern Finland

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The Finnish Ministry of Economic Affairs and Employment has appointed a working group to prepare a time-limited pilot project for a special economic zone in eastern Finland. The initiative aims to attract investments, improve access to skilled labour, and accelerate project launches in the region, which has faced economic challenges in the 2020s, including the impact of Russia’s war of aggression (Yle).

The working group, established on 17 August 2026, will define the pilot’s areas, objectives, measures, and duration, as well as draft the necessary legislation. Key measures under consideration include tax relief and faster permitting processes to stimulate economic activity. The group will also develop a plan to assess the pilot’s impacts and ensure compatibility with the EU’s National and Regional Partnership plan, which promotes regional vitality (Finnish Ministry of Economic Affairs and Employment).

Focus on Imatra and Kajaani

Special representative for eastern Finland, Harri Broman, has proposed Kajaani and the Imatra region as the pilot areas. The proposal has received unanimous support from regional councils, central cities, chambers of commerce, entrepreneurs’ organisations, and educational institutions across all six eastern regions. Broman emphasised that the selection is final at this stage, stating, “It would be a great surprise if the package were to be reopened now” (Yle).

The working group has until the end of March 2027 to complete its preparations, including a draft act and an assessment memorandum. Following this, the proposal will undergo public consultation. The group’s term extends until 31 December 2027, with progress reported to a steering group of State Secretaries (Finnish Ministry of Economic Affairs and Employment).

Next Steps Depend on Future Government

While the pilot is included in the eastern Finland programme submitted to Prime Minister Petteri Orpo, the legislation will not be presented to Parliament during the current government’s term. Broman expressed confidence that the project will be incorporated into the next government’s programme, regardless of its political composition. “Based on the discussions I have had, I strongly believe that the pilot will be included in the next government programme,” he said (Yle).

The initiative follows a government decision in April 2026 to launch the legislative preparation for temporary special economic zones, as part of broader efforts to strengthen regional and industrial policy in Finland (Finnish Ministry of Economic Affairs and Employment).

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