Corporate law professor Petri Kuoppamäki, who is approaching his 60th birthday, believes that the easing of EU state subsidies is necessary due to increased competition for investments. He views this as a significant shift in state aid policy and competition law within the European Union. Kuoppamäki compares the EU to an elderly person who has fallen off a sled, emphasizing the need to adapt to changing circumstances.
The global competition for investments has intensified, with countries like the US and China offering generous funding to their companies. In contrast, the EU has strict regulations prohibiting state subsidies. However, Kuoppamäki points out that industrial policy considerations are becoming increasingly important, especially following the challenges posed by the coronavirus pandemic.
Despite temporary relaxation of state aid regulations during the pandemic, the EU continues restrictions on granting subsidies, which could disadvantage small open economies like Finland. Kuoppamäki highlights how member states such as France and Germany have changed their attitudes towards state subsidies, reflecting a shift in economic policy within the EU.
The need for public funding to support investments in combating climate change and developing new technologies is crucial. Kuoppamäki argues for promoting green investments through state support as it may be challenging for them to compete initially in the market due to cost differentials.
Kuoppamäki acknowledges the role of the European Commission in loosening the interpretation of prohibited state aid but warns against going too far in allowing subsidies. He also addresses competition issues in international markets where differing rules and practices can impact companies’ operations.
As a seasoned legal expert and academic, Kuoppamäki brings a wealth of experience and insights to the evolving landscape of corporate law in the EU.