Finland to pilot special economic zones in Imatra and Kajaani

The Finnish government has agreed to prepare legislation for a trial of special economic zones, though timelines and details remain unclear, Yle reports.

Eastern Finland’s special representative Harri Broman interprets the government’s budget framework decision as a commitment to implement the zones. “I see this as confirmation that the special economic zone will indeed be realised,” Broman said.

The zones aim to attract investment through tax incentives and streamlined permitting. Finland has not previously tested such zones. While Broman proposed Imatra and Kajaani as pilot locations, he noted the trial could later expand to other regions.

Uncertainty over timing and scope
No concrete proposal yet exists for the zones’ content or implementation schedule. Broman expects more clarity during the autumn 2026 budget negotiations. “By then, we’ll have far more specifics,” he said.

Imatra, heavily reliant on Russian shopper tourism before the Ukraine war, has suffered severe economic impacts from border closures and layoffs. The city holds Southeast Finland’s highest unemployment rate. Mayor Matias Hildén called the government’s decision a “long-awaited, positive signal,” though he doubts laws will pass during this electoral term. Optimistically, the zone could launch by 2028.

Potential for forestry, biotech, and energy investments
Broman believes the zone could draw investments in forestry, biotech, and energy—sectors where LUT University offers world-class expertise. Kajaani, meanwhile, has recently attracted major data centre projects, but Kainuu regional director Riikka Pirkkalainen stresses the need for broader economic activity. “We already have strong momentum, especially in data centre ecosystems, but we need more businesses and workforce solutions,” she said, citing demographic challenges.

South Karelia’s regional director Satu Sikase urged state intervention to counter geopolitical economic pressures. “This is our turn. The region needs government support to reverse its difficult situation.”