FINLANDUPDATED | 11| 2014

2014 | 2020EU BUDGETS

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Global Europe

Administration

Compensation

Security & Citizenship

€ 199.828

€ 959.988in current prices: € 1.082.555

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The five European Structural and Investment Funds;

| The European Regional Development Fund

| The European Social Fund

| The Cohesion Fund

| The European Maritime and Fisheries Fund

| The European Agricultural Fund for Rural Development

ESI FUNDSTHE 5

| EU Member States are required to draw up and implement

strategic plans with investment priorities covering the five ESI

Funds.

| These Partnership Agreements (PAs) are negotiated between the

European Commission and national authorities, following their

consultation of various levels of governance, representatives from

interest groups, civil society and local

and regional representatives.

AGREEMENTSPARTNERSHIP

The new map will be in force between 1 July 2014 and 31 December 2020. It covers sparsely populated areas accounting for 24.18% of Finland's population.

| Finland has also designated the Salo sub-region as an area undergoing a major structural change with a total population of 64,087 or 1.181% of the national population.

| As Finland was entitled to a population ceiling of 1.85% under this latter category, this leaves a reserve of 0.669% for designating other areas in need.

AID PERCENTAGESMAXIMUM

| The maximum level of aid that can be granted to investment projects carried out by large companies is 15% of total investment costs in sparsely populated areas and 10% in the Salo subregion. For investments carried out by SMEs, these percentages can be increased.

| While the population coverage is lower than in the previous aid map (by around seven percentage points), the overall aid intensities have remained the same, with the Salo subregion being designated for the first time.

| This is in line with the objectives of the new regional aid guidelines, which aim at focusing support on the most disadvantaged regions of Europe..

AID PERCENTAGESMAXIMUM

CU

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STA

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STotal number

of OP s submitted

per country

Countries have

their OP s

adopted:21 OP >Denmark

1 OP >Lithuania

| Partnership Agreement Adopted 07 – 10 – 2014

| 2 Operational Programme’s submitted

| Adoption of OP’s by European commission in Q4 2014

| Exp.1st grant calls Q1 2015 for funding priorities related to OP’s

OPs should be submitted by Member States within 3 months following the

submission of the Partnership Agreement.

The Commission makes observations within 3 months and adopts the OP

no later than 6 months from the date of its submission.

PLANNING

The PA focuses on the following priorities:

|• promoting innovative and competitive business and research environment

•| increasing labour market participation through improved employment,

social inclusion and education policies

•| reinforcing sustainable and efficient use of resources for environment

friendly growth

PRIORITIESFUNDING

ESI Funds will assist Finland in achieving national targets of

EU2020 and its flagship initiatives:

•| R&I expenditure in relation to GDP is to increase from 3.73% (2011)

to 4.0% (2020).

|• Funds will contribute to diversifying the economic base of Finnish

regions via smart specialization.

RESULTSEXPECTED

•| Internationalization and competitiveness of SMEs is strengthened.

•| In relation to energy objectives, ESI Funds will provide a significant

contribution to increase the share of use of renewable energy from

33% (2011) to 38% (2020).

•| The Funds will contribute to an increased employment rate (target

78%) and reduced poverty and exclusion (by 150 thousand

inhabitants).

RESULTSEXPECTED

In 2014-2020 Finland is allocated around €1.47 billion for

Cohesion Policy (ERDF and ESF) including €161.3 million for the

territorial cooperation.

| Additional €2.38 billion will be devoted to development of the agricultural

sector and rural areas from the EAFRD.

| The allocation for EMFF amounts to €74.4 million.

ALLOCATIONSFINANCIAL

Cohesion policy delivery will be simplified through a reduction of

the number of operational programmes from seven in the previous

period to two in the 2014-20 period;

| There will be two multifund operational programmes (OPs), co-financed

by ERDF and ESF (OP mainland Finland and OP Åland Islands).

| Moreover there are two Rural Development Programmes financed by

EAFRD (mainland Finland RDP and Åland Islands RDP) and one Maritime

and Fisheries Fund programme financed by EMFF.

ARCHITECTUREPROGRAMME

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THEMATIC OBJECTIVE& BY FUNDALLOCATION BROKEN DOWN BY