UPM-Biofore-Magazine-1-2015-EN

Jyrki Katainen

“Low investment rates in Europe are partially due to the prolonged economic downturn.”

companies, as well as on technology pilots. The goal is to mobilise private funds for these projects,” Katainen notes.

at the national and European level influ- ences the business environment, so the legislationmust be predictable in the long term. Investing

are partially due to the prolonged economic downturn, admits Jyrki Katainen , Vice-President of the European Commission and head of a project team responsible for jobs, growth and investment. However, he points out that this is a global problem that also affects areas outside Europe. “Corporate investment also faces problems related to competitiveness in different EUmember states. The solution has to be found at national level,” says Katainen, adding that there is no functioning internal market for energy and digital services, for instance. Katainen is currently visiting different EUmember states to intro- duce the European Commission’s investment package. The goal is to deepen the internal market for digital services, energy and capital, as well as to establish an investment fund worth €315 billion. The new fund will yield capital for risk investment in the private sector and in private and public partnership projects. “Capital investments are granted from the fund, and emphasis is also placed on higher risk investments within small andmedium-sized

Inhospitable environment

in productionmills and refineries requires a significant amount of capital. Companies must be able to predict their business environment for decades to come, also in terms of legislation.” says Ståhlberg. Proposed rapid amendment of EU legislation on biofuels that is now under discussion has created uncer- tainty and delayed or blocked invest- ment in the field. Katainen also admits that the ongoing discussion around biofuels is an unfortunate example of the difficulties posed by European regulations. “Different industries are lobbying strongly against each other in this matter. We hope that we can reach sound decisions quickly in order to dispel uncertainty in the sector. In general, the EU should take deci- sions on energy and climate policy as quickly as possible; this would increase the level of certainty for investment in the energy sector,” Katainen concludes.

Investment is not only reliant on economic growth and demand, but also industrial competitiveness – or, in other words, the conditions under which companies can compete at European or global level. The Confederation of European Paper Industries (CEPI) has esti- mated that the forest industry will invest about €5 billion in Europe over the next three years. Innovative technological breakthroughs, recy- cling and bio-based economy are all attracting investors. However, this will not continue unless legislators are willing to enable a more hospitable business environment. Ståhlberg believes that European investment would be boosted to a significant extent by eliminating some of the regulatory obstacles that hold companies back and by enhancing competitiveness. “The regulatory framework both

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