Column Politics Takes More and More Power in the Economy

The world economy is turning into an increasingly controlled market economy The economies of authoritarian countries have always been at the mercy of government decision-makers.

Now the countries that supported a free market economy are also moving in the same direction - slowly, almost imperceptibly and in small steps The economy is returning to attitudes that were strong in the post-World War II era.

President Urho Kekkonen was on a ski trip in Rojuniemi in Saloinen in January 1960 Kekkonen was shown the area planned for the steel factory.

Kekkonen found the place good Let Rautaruukki come! And Rautaruukki came.

When the first nuclear power plant was acquired in Finland, Imatran Voima wanted to order it from Loviisa in the west Kekkonen and the board corrected the flaw of the state-owned company: the company's actions were based on market conditions.

The power plant was ordered from the direction indicated by Kekkonen's hand, and the hand pointed east for political reasons Swedish SSAB absorbed Rautaruukki nine years ago.

Pure market-based benefits were pursued with the purchase Profit increases when overlaps are eliminated.

The world has changed since those years In today's world, the future of SSAB and Rautaruukki is decided by how they manage to remove fossil energy from their production.

SSAB plans to invest billions in green hydrogen Green hydrogen is made using the electrolysis method, and the electricity needed for it comes from renewable energy.

The transition to a hydrogen economy has required and will require a lot of hand-holding and guidance from politics in the future Market-based profitability is far away and cannot be achieved without the help of politics.

The European Union and the European Central Bank direct the market so that that money flows freely to companies promoting the green transition The EU is changing state aid rules to make it easier for the market to be steered politically.

The Union builds support packages to promote climate policy and the hydrogen economy - in the way chosen by the Commission In the United States, President Joe Biden's administration allocates hundreds of billions of dollars to green production, promotes the sale of American electric cars, and attracts companies to the United States to make products that are good for climate protection.

Whenever politics intervenes in the market, wholesale rules governing the market come over the market The green transition is not the only big process that drags the state to the plot of the free market economy.

In the name of taming the energy crisis, companies have been pushed closer to the state's security of supply needs Energy companies have been supported and rescued.

On the other hand, their profits have been pinched with political calculation formulas and transferred to the common treasury The Finnish government saved Fortum when it pulled itself out of Uniper.

Rescued people are under state supervision more than before The states have rushed to help households as well, so that they don't have to face the tough world of the market without cushions.

When Fortum applied for an extension license for the Loviisa reactors, the Finnish government rushed to support The fuels have come to Loviisa from the direction indicated by Kekkonen.

When it will no longer be possible to import fuel from there in the future, the government promised to help in the search for a new, western supplier It is assumed that Finland and Sweden will intensify their cooperation so that companies promoting the green transition, such as SSAB, receive attention and support from both states.

EU state aid rules will make this kind of joint support easier in the future There are good grounds for political outreach in this period as well.

In the post-war period, it was difficult to get the capital needed to build heavy industry from the market The green transition also requires huge investments.

But politics can be worse at picking winners than the free market A few control measures intended to tame the energy and inflation crisis expired before they took effect.

The market corrected the imbalance In a restored state of equilibrium, these political choices are just disturbances.

The author is the editor-in-chief of HS There are good grounds for political outreach in this period as well.

In the post-war period, it was difficult to get the capital needed to build heavy industry from the market The green transition also requires huge investments.

But politics can be worse at picking winners than the free market A few control measures intended to tame the energy and inflation crisis expired before they took effect.

The market corrected the imbalance In a restored state of equilibrium, these political choices are just disturbances.

The author is the editor-in-chief of HS There are good grounds for political outreach in this period as well.

In the post-war period, it was difficult to get the capital needed to build heavy industry from the market The green transition also requires huge investments.

But politics can be worse at picking winners than the free market A few control measures intended to tame the energy and inflation crisis expired before they took effect.

The market corrected the imbalance In a restored state of equilibrium, these political choices are just disturbances.

The author is the editor-in-chief of HS A few control measures intended to tame the energy and inflation crisis expired before they took effect.

The market corrected the imbalance In a restored state of equilibrium, these political choices are just disturbances.

The author is the editor-in-chief of HS A few control measures intended to tame the energy and inflation crisis expired before they took effect.

The market corrected the imbalance In a restored state of equilibrium, these political choices are just disturbances.

The author is the editor-in-chief of HS .