EU Update: Effective transport connections as enablers of European competitiveness and overall security

Legislators in the European Union are currently working closely on various regulatory texts for the future Multiannual Financial Framework (MFF) among other things. As a whole, the future of transport funding is particularly important for Europe, Finland, and Tapere Region. Transport funding from the EU is increasing, but its allocation requires national prioritization.

The EU’s transport links form the backbone of the Union. The core of the EU is based on the single market and the free movement of people, services, and capital. Effective transport links by land, sea, and air therefore form the basis for the EU’s prosperity and unity. Increasingly, this is also a question of overall security and the development of defense capabilities.

This topic is particularly relevant this spring. Last summer, the European Commission published its proposal for the EU’s next MFF, and the Member States and the European Parliament are now negotiating their positions on the various proposals in the package. In terms of transport, a key part of the package is the Connecting Europe Facility (CEF) programme. According to the Commission’s proposal, funding for the programme would increase from €33 billion to €81 billion for the period 2028–2034.

There has been quite a lot of legislative work around the CEF this spring. At the end of last year, the Council of the European Union (Ministers of the Member States) approved a compromise proposal by the Danish Presidency, which also aligned with Finland’s position. The Warsaw–Helsinki–Tampere route and the Stockholm–Turku–Helsinki route were added to the list of important European routes. As the Umeå-Oulu route was already included in the Commission’s proposal, Finland now has three routes considered important at the European level. Parliament will negotiate the regulation at committee level over the coming months.

In negotiations, it is important to recognize the geographical characteristics of different European countries. The compromise text of the Council of the European Union highlights island states in particular, but it is also important to recognize the challenges faced by countries such as Finland in building cross-border connections. Due to the situation on its eastern border, Finland is in practice a European island state, with the exception of its northern connection. In any case, we are at the bottom of the pile. When allocating funds through the CEF, attention is focused on improving cross-border connections in Europe. Finland is therefore at a disadvantage due to its location, a fact that should be clearly recognised in the text of the regulation. While it is true and desirable that transport funding should be based on open competition, it is also important to recognise the challenges faced by countries such as Finland in building cross-border connections. At the same time, however, the position of countries facing difficulties, particularly as a result of Russia’s war of aggression, must also be considered. However, there is no reason to allow GDP-based weightings in this financial instrument.

Finland has not been particularly successful in the current period of the CEF-program. In the coming period, there will be more money available, but in order to take advantage of the program, Finland must also prioritize the most important rail projects in terms of increasing competitiveness and promoting security of supply. Given the state of public finances, not all projects can be implemented, but at the same time, EU funding opportunities must be utilized as effectively as possible. EU funding covers only part of the projects receiving funding, so national matching funds must be secured for the most important projects.

The position of Tampere and Tampere Region as a rail node brings with it the need to develop fast rail connections both from Helsinki to Tampere and beyond. The priorities and focus areas of the upcoming CEF-programme are currently being negotiated in Europe, and Finland appears to have a good chance of securing increased EU funding for transport connections. Therefore, at the same time, Finland must define its national priorities.