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The Finnish government has decided not to earmark funds for its much-discussed incentive programme to promote the sales of electric bicycles.
The Finnish government has decided not to earmark funds for its much-discussed incentive programme to promote the sales of electric bicycles.

 

The Ministry of Transport and Communications has revealed that the government has decided not to allocate funds in its next year’s budget to its much-discussed incentive programme for the promotion of the sales of electric bicycles.

The government was considering earmarking a total of 16.3 million euros for the 30-month programme, which would have entitled the buyers of new electric bicycles to an incentive of 400 euros.

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Its proposal, however, was met with vehement opposition from economists and bicycle retailers alike, with many experts calling particular attention to the size of the purchase incentive.

Juhana Brotherus, the chief economist at the Mortgage Society of Finland (Hypo), stated in March that the incentive is unusually high in light of the fact that it has been designed to promote the sales of what is essentially a consumer product. He also warned that the incentive could throw the otherwise market-based bicycle trade into a state of confusion and dent the sales of regular bicycles.

“As electric bicycles are available for less than 400 euros, everyone should grab a free bicycle – the government is paying,” he explained.

Aleksi Teivainen – HT
Photo: Vesa Moilanen – Lehtikuva
Source: Uusi Suomi

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