TALLINN, Estonia, Sept. 13, 2024 – Estonia’s government has approved a €160 million support measure aimed at attracting large-scale investments, with a focus on export-oriented projects that create high-paying jobs.
According to a press statement released on Friday, the plan, presented by Minister of Economic Affairs and Industry Erkki Keldo, is designed to make Estonia more competitive in the global race for strategic business investments.
“The state needs to do everything it can to attract higher value-added jobs to Estonia and increase its exports,” Keldo said after the budget discussions. “Today’s decision in support of large-scale investment is a great start. It means well-paying jobs for our people and a smarter economy.”
The initiative comes as Estonia faces increasing competition from other countries, which are offering flexible financial support to attract large, knowledge-intensive companies. According to Keldo, Estonia has been lagging in this area. “We need a stronger support scheme that will prompt companies to bring their jobs and know-how here,” he explained.
The support measure, which will run from 2025 to 2028, requires that each project involve a minimum investment of €100 million, create at least 30 direct jobs, and 70 indirect jobs. The government forecasts that it will finance around two projects annually, for a total of eight major investments over the four-year period.
“Each project will be expected to deliver significant returns, with at least 40% of the investment, or €80 million per project, coming back to the state in tax revenue,” Keldo noted. He emphasized that these investments would not only bring in revenue but also boost the knowledge intensity and overall competitiveness of the economy.
The jobs created by these projects will offer salaries that meet or exceed the average in their respective sectors.
The measure will be managed by the Estonian Business and Innovation Agency and will specifically target companies involved in exports. The government has also committed to speeding up planning and permit procedures, ensuring access to renewable energy, and attracting foreign labor as part of the broader effort to improve Estonia’s investment landscape.
“We are working on making Estonia’s value proposition more competitive, including in areas like labor availability, access to capital, and renewable energy,” Keldo said.
More details about the investment scheme are expected to be released in the coming months.
