Government approves €160-million, large-scale investment support scheme
A proposal by Minister of Economic Affairs and Industry Erkki Keldo (Reform) to create a €160 million support measure for large-scale, export and job creation-focused investments in Estonia, has found government support.
The move as announced comes as part of an effort to rejuvenate Estonia's status as a destination of choice for companies working in knowledge-intensive fields.
The support measure for the period 2025-2028 would be managed by the Estonian Business and Innovation Agency (EISA).
Following budget talks on Thursday evening at which the agreement was made, Minister Keldo said: "Each project's investment must be at least €100 million and should create at least 30 direct and 70 indirect jobs."
"We anticipate that on average we will fund two projects per year, with an average project cost of €200 million of which at least 40 percent of this amount, or €80 million, in tax revenue per project, is expected to reach the state," Keldo went on.
"The state must make efforts to attract jobs which generate higher added value and boost exports," the minister continued in outlining the rationale.
Keldo said other countries too are using flexible and quick-to-deploy financial support measures to attract large-scale, knowledge-intensive companies – the kind to which Estonia has for long been known to appeal to.
"Estonia is sadly losing its competitiveness in this arena, hence why we need a new and more robust support scheme, to encourage companies to bring their expertise and jobs to Estonia in future," Keldo added.
The government's communication office has said that the first payments under the new support scheme will start in 2026.
To qualify for support, an investment must be at least €100 million in size, export-focused, and with well-paid job creation as an outcome.
The support scheme for large-scale investments will run from 2025 to 2028, with a total of €160 million available as noted, and would cover eight major investments over the four-year period.
Funding will be allocated to a government-designated reserve, with usage based on present and concrete investment needs.
The support scheme will not negatively impact the state budget, it is argued, as the costs associated with the measure will be offset by the corresponding revenues, the government office says.
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Editor: Andrew Whyte
