Finland’s government has withdrawn its support for a planned €35 million state subsidy for the Garden Helsinki arena project after weeks of dispute over lobbying, political links and the basis for the funding decision.
Prime Minister Petteri Orpo announced the move on Monday after an extraordinary government session. He said the four governing parties had agreed that the project no longer had political backing.
“This government will no longer advance this state aid,” Orpo told reporters.
The government approved the conditional subsidy during its spending talks in spring 2025. No state money has been paid to the project.
Orpo said the arena plan had become smaller, suffered delays and faced a different competitive situation from the one assessed in 2025. He also referred to mistakes in lobbying and said the public dispute had affected the government’s position.
“A lot has happened over the past fifteen months,” Orpo said at the press conference. “The project has been scaled back and delayed, there have been clear shortcomings in the lobbying process, and the competitive situation has changed.”
He said the government parties reached the decision together during talks on Sunday. He did not identify which party or minister first proposed withdrawing support.
The government will now commission a review of Finland’s need for a large multipurpose arena. The review will also examine how major venue projects should apply for state support and what criteria officials should use when comparing applications.
Orpo said Finland lacks a transparent process for assessing support for projects of this scale. The review is due for completion in spring 2027.
Garden Helsinki is planned for Taka-Töölö in Helsinki. The venue was designed to host ice hockey, concerts and other events, with HIFK expected to use the arena as its home ground.
The project has faced scrutiny since details emerged about the government’s decision to reserve €35 million in conditional aid despite a critical assessment from Ministry of Finance officials.
Opposition parties have questioned why the government backed the project and whether its links to senior National Coalition Party figures affected the process.
Former National Coalition Party minister and Helsinki mayor Jan Vapaavuori has served as chairman of the project company and has lobbied for the arena. Vapaavuori failed to record part of his lobbying activity in Finland’s transparency register.
Orpo said the National Audit Office should examine the project company’s lobbying work in detail.
Emails published during the dispute have also raised questions about the methods used to secure political support. Vapaavuori wrote to members of Orpo’s staff about pushing the subsidy through the government’s negotiations.
Orpo said errors had taken place in the lobbying process but denied that political connections had shaped the government’s original decision.
The role of businessman Ilpo Kokkila has also drawn attention. Kokkila has supported the National Coalition Party and Orpo’s election campaigns. He is a major owner of construction company SRV, which has worked with the Garden Helsinki project.
Orpo denied that campaign funding had affected the subsidy decision. He said he had not discussed Garden Helsinki with Kokkila.
“There is no connection. It is a coincidence. They are two separate matters,” Orpo said when asked about Kokkila’s links to Garden Helsinki and another government-backed business arrangement.
That second case concerns Valmet Automotive, the car plant in Uusikaupunki. The state used about €120 million in capital in a rescue arrangement in 2025 and became the company’s majority owner. Kokkila’s investment company Pontos retained a minority holding.
The cases have prompted questions over whether Orpo should have removed himself from the Valmet Automotive decision because Kokkila had supported his campaigns.
Orpo said the arrangement came through official preparation by the state ownership unit and the Ministry of Economic Affairs and Employment. He said he attended the decision-making meeting but did not influence the terms.
“I assessed that I was not disqualified,” he said.
The Chancellor of Justice has asked Orpo and the Prime Minister’s Office to provide information on both the Garden Helsinki subsidy and the Valmet Automotive arrangement.
Orpo said he regarded the questions about his conduct as serious and wanted the legal review completed without delay. He rejected claims that election funding had influenced either case.
“A single donation has no significance when we make these decisions,” he said.
Orpo also said he had complied with Finland’s election finance rules and that the National Coalition Party receives support from many donors.
The government will submit a formal statement to Parliament on Tuesday. MPs have been recalled during the summer recess for the debate, an uncommon step in Finnish politics.
Parliament will examine the funding process, the lobbying surrounding the project and the conduct of ministers. The debate is expected to end with a confidence vote on the government or individual ministers.
Orpo said he would attend the session ready to answer questions and did not believe his position was under threat.
“I am not worried, but I do not want to give the impression that I do not take this seriously,” he said.
HT