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Finland Offer 400-Euro Subsidy for E-bike Purchases

2018-04-13


The Ministry of Transport and Communications put the proposed ice subsidy after strong criticism of the plan and dissent within the government.


Consumers who consider buying electronic bicycles will probably have to fork the total cost themselves after the Ministry of Transport and Communications has shot a proposal to subsidize purchases of electric bikes – leaving it for the next government to address.

The decision comes in the midst of a storm of criticism leveled at the proposal during a round of comments due to end in late April. The ministry previously suggested granting a subsidy of 400 euros to people who want to buy an e-bike.

The proposal is part of the scheme aimed at advancing the growth of non-motorized traffic--a decision in principle that was announced in March. The programme and a series of related measures are intended to promote the use of cycles as well as the way forward.

Regression on the proposal

However, the plan to provide a financial incentive to buy e-bikes was not originally part of the program. Some of the setbacks against the idea arose on charges that the subsidy was offered to motorcycles that were already reasonably affordable.

There was also some disunity in the government on the subject. The National Coalition party has said that it does not support the measure (link content in Finnish) and also argued that it would result in market distortions. The party also said that while the idea of promoting emissions-free traffic was in itself  "Beautiful " It would be fairer to offer support for all types of non-motorized vehicles, such as mopeds and electrically powered motorcycles.

The Ministry intended to implement the subsidy program by temporarily expanding a financial support plan for low-emission vehicles to e-bikes.


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