HELSINKI, July 20 (Xinhua) -- The Finnish government on Monday approved a formal statement to parliament withdrawing political backing for a planned 35-million-euro (39.93-million-U.S.-dollar) conditional subsidy for the Garden Helsinki arena project amid corruption allegations surrounding the funding pledge.
Parliament will interrupt its summer recess on Tuesday to debate the statement, a session that could lead to a confidence vote on the government.
Prime Minister Petteri Orpo said the government would no longer proceed with the subsidy but denied any corruption in the original decision. He acknowledged "clear mistakes" in lobbying for the project and said delays, changes to the project and shifting market conditions had undermined the rationale for the funding.
The subsidy, agreed by the governing parties in April 2025, was to cover 10 percent of the cost of the planned multipurpose arena and ice rink. The subsidy remained conditional on the project being implemented, with detailed eligibility criteria left to further preparation by government officials. No funds have been paid.
The controversy erupted after Finnish media reported that the project company's chairman had repeatedly contacted government officials and members of Orpo's staff before the funding pledge was made. Opposition parties have questioned the selection process and whether political connections influenced the decision.
The National Audit Office is investigating whether the company complied with lobbying transparency rules, while the Chancellor of Justice is examining related complaints.
Although the government has withdrawn its support for the subsidy, Tuesday's parliamentary session will proceed as planned, requiring the government to defend its handling of the case. ■