Hjallis Harkimo: Selling 49 percent of Veikkaus – 2024-04-05 16:19:23

Chairman of Liike Nyt and the only member of parliament Harry “Hjallis” Harkimo hit the counter with his growth package in the parliament on Thursday.

According to Harkimo Petteri Orpon (kok) the savings and workforce reforms made by the government are indeed important, but he strongly criticizes the government for not being able to present at least such economic growth measures that would pass the filter of Harkimo, who has an entrepreneurial background.

Harkimo strongly criticizes, for example, the chairman of PS, the Minister of Finance Riikka Purraa that Purra did not talk about the factors of growth in the interview with Ilta-Sanomi, but focused too much on cuts and savings.

According to Harkimo, this way of thinking is the problem of the whole politics in general and that it hurts the Finnish economy.

Harry Harkimo presented his economic growth package in parliament on Thursday. Mika Koskinen

Business tax down

According to Harkimo, the corporate tax should be reduced from the current 20 percent to 15 percent.

– A decrease in corporate tax lowers the return requirement on investments and improves the return on capital, which leads to an increase in capital stocks. This, in turn, also raises the wage level, production, labor demand and supply, and leads to an increase in the number of jobs, Harkimo outlined in his press conference in parliament on Thursday.

Harkimo relies on the Ministry of Finance for the reduction of corporate tax. According to Harkimo, the Ministry of Finance estimated the self-financing rate of the reform of the corporate tax rate to be 50% a few years ago.

Bold support models should be created from Harkimo, because they encourage investment in Finland.

– In the current model, Finland’s total investment of 400 million euros goes directly to one company in France. There is such a significant difference that there is no need to wonder where the investments will go when the market is closer, he relates.

– The goal must be, among other things, the most efficient licensing in the world, a stable labor market, predictable costs of electricity and logistics, i.e. overall competitiveness must be world class, Harkimo enumerates.

Less business subsidies

Harkimo cut business subsidies.

– Business subsidies should be removed in the amount of one billion. They can be taken away, as the decrease in corporate tax compensates them for companies.

According to him, business subsidies need to be renovated and targeted better.

– The whole of Finland must be made a special economic zone and special attention must be given to Eastern Finland, already because of security. In this special economic zone, Finland must grant tax support and direct support to companies for investments, Harkimo says.

– We have to understand that Finland competes with other countries for investments. That’s why we have to have something to offer so that we can compete with other countries, he continues.

According to Harkimo, the state should invest in investments by transferring the current four billion euro rail investments, including Turku’s one-hour train, and by selling state assets.

Harkimo would partially make Veikkaus Oy fat and take the company to the stock exchange.

– 49% of Veikkaus is for sale. About 3–4 billion will be obtained from it. A pot of 8 billion in total, which will be scaled and distributed to companies, Harkimo will enjoy the money from the sale of shares from Veikkaus and the money saved from rail investments.

Harkimo would leverage this 8 billion euro pot.

– Investors will be acquired so that all investments will be 20 billion, i.e. the state will invest 8 billion and the investors 12 billion. With this, we can get the investments started and ready, says Harkimo.

Is Finland Congo?

According to Harkimo, Finland’s future cannot be the “Congo of Europe.”

– The turnover of the mining industry in Finland is 2–3 billion a year, and it must be taken over by Finland immediately. Foreign companies are not allowed to excavate on Finnish soil.

– Suomen malmijalostus Oy does the excavations and the state finances the excavations, which are around 100 million euros per year. About 100 million are invested in the military industry and different types of ammunition are developed. This is the industry’s assessment, Harkimo says.

According to Harkimo, every big investment for which Finland is competing must be separately processed and find out how Finland will get it.