Finnish government urged to revive construction sector with renovation subsidies

Finnish construction industry groups are calling for state-funded renovation subsidies to create up to 6,000 jobs and revive the struggling sector, reports national broadcaster Yle. The proposed support—modeled after a 2009 scheme where the government covered 10% of housing association renovation costs—could inject up to €1 billion into stalled projects, according to estimates.

Industry leaders warn that without intervention, the sector’s prolonged downturn will persist. “This is the right time for the state to step in,” said Aleksi Randell, CEO of the Construction Industry Federation, noting that repair construction has seen nine consecutive quarters of decline. The sector has also faced unsold housing stock and the loss of tens of thousands of workers.

Kimmo Palonen, chair of the Construction Trade Union, estimates that a €100 million subsidy could unlock €1 billion in projects, generating €400 million in tax revenue and creating 5,000–6,000 jobs. “Every million invested in construction creates about 14 person-years of work,” he said.

Targeted support for housing associations is also under discussion. Marianne Falck-Hvilstafeldt of the Property Managers’ Association stressed that aid should prioritize associations struggling with loan access—not those already planning renovations or burdened by excessive debt.

Political backing for the proposal has emerged, with leaders from the Christian Democrats and Centre Party recently signaling openness to the idea. The government is expected to address the issue in ongoing budget negotiations.