The Finnish Ministry of Finance adjusts its State aid rules regarding municipal enterprises (Local government operations in a competitive market environment and corporatization of operations)

The Finnish authorities have been advised by the European Commission's preliminary view to abolish a range of tax exemptions and unlimited State guarantees granted to municipal enterprises. The Commission, indeed, is taking a strict approach to the distortion of competition regarding municipal enterprises operating in a competitive market environment. Background In December 2008, the Finnish Association for Tourism and Restaurant Services (MaRa ry) and Helsinki Region Chamber of Commerce lodged a complaint to the European Commission regarding competitive advantages enjoyed by Palmia, a municipal enterprise owned by the City of Helsinki which provides various catering, property maintenance, cleaning and security services. During initial investigations, the Commission established that

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Auteur

  • Finnish Competition and Consumer Authority (Helsinki)

Citation

Niina Hänninen, The Finnish Ministry of Finance adjusts its State aid rules regarding municipal enterprises (Local government operations in a competitive market environment and corporatization of operations), 30 avril 2010, e-Competitions May 2010, Art. N° 32343

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