Garden Helsinki will no longer receive a planned 35 million euro state subsidy after the Finnish government decided to withdraw its support following weeks of political controversy over lobbying, transparency and the decision-making process.
Prime Minister Petteri Orpo announced the decision on Monday after an extraordinary government meeting, saying all four parties in the governing coalition had agreed that the project no longer had enough political support to move forward.
“The government will no longer proceed with this state aid,” Orpo told reporters.
The subsidy was approved in principle during the government’s spring 2025 spending negotiations, but no public money has been paid to the project.
Orpo said the circumstances surrounding Garden Helsinki had changed significantly since the subsidy was first approved.
According to him, the project has been reduced in size, experienced repeated delays and now faces a different market environment than it did in 2025. He also acknowledged that problems in the lobbying process and the public debate surrounding the project influenced the government’s latest decision.
“A great deal has changed over the past fifteen months,” Orpo said. “The project has become smaller, it has been delayed, there were clear shortcomings in the lobbying process and the competitive situation has changed.”
He added that all coalition parties agreed to withdraw support during discussions held on Sunday, although he did not reveal which party first proposed the move.
Instead of moving ahead with the subsidy, the government will launch a national review to determine whether Finland needs another large multipurpose arena.
The review will also examine how future projects should apply for state funding and what standards should be used when comparing competing proposals.
Orpo said Finland currently lacks a clear and transparent system for evaluating large infrastructure projects seeking government support. The review is expected to be completed by spring 2027.
Garden Helsinki is a long-planned sports and entertainment complex proposed for the Taka-Toolo district of Helsinki.
The arena is intended to host ice hockey games, concerts, conferences and other major events. Finnish ice hockey club HIFK has been expected to use the venue as its future home arena.
Although the project has been discussed for years, construction has yet to begin because of financing challenges, planning delays and ongoing political debate.
The project attracted growing criticism after it emerged that the government had reserved 35 million euros in conditional funding even though officials at the Ministry of Finance had reportedly questioned the proposal.
Opposition parties have since demanded answers about how the subsidy was approved and whether political relationships influenced the process.
Much of the attention has focused on former National Coalition Party minister and former Helsinki Mayor Jan Vapaavuori, who serves as chairman of the project company.
Vapaavuori actively lobbied for the arena but later admitted that some of his lobbying activities were not properly recorded in Finland’s transparency register.
Orpo said the National Audit Office should examine the company’s lobbying activities in detail.
The controversy deepened after emails became public showing Vapaavuori discussing ways to secure political backing for the subsidy with members of the prime minister’s staff.
Although Orpo acknowledged mistakes in the lobbying process, he rejected claims that political connections influenced the government’s original decision.
The debate has also drawn attention to businessman Ilpo Kokkila, whose investment company has financial interests connected to the Garden Helsinki project.
Kokkila has previously donated to National Coalition Party election campaigns, including campaigns involving Orpo. He is also a major owner of construction company SRV, one of the companies linked to the arena development.
Opposition politicians have questioned whether those financial connections created a conflict of interest.
Orpo firmly rejected those claims.
“There is no connection. They are two separate matters,” he said.
He also stated that he had never discussed Garden Helsinki with Kokkila.
The political debate has expanded beyond Garden Helsinki to include another government decision involving Valmet Automotive.
In 2025, the Finnish state invested around 120 million euros to rescue the company and became its majority owner. Kokkila’s investment company, Pontos, retained a minority stake.
Some critics have questioned whether Orpo should have stepped aside from that decision because of Kokkila’s previous campaign donations.
Orpo said the transaction was prepared by government officials through the state’s ownership steering unit and the Ministry of Economic Affairs and Employment. While he attended the meeting where the decision was approved, he said he did not influence its terms.
“I concluded that I was not disqualified,” he said.
The Chancellor of Justice has requested information from both Orpo and the Prime Minister’s Office regarding the Garden Helsinki subsidy and the Valmet Automotive transaction.
Orpo said he welcomed the legal review and wanted it completed as quickly as possible.
He also dismissed suggestions that campaign donations had influenced either decision.
“A single donation has no significance when we make these decisions,” he said.
He added that he has complied with Finland’s election finance laws and noted that the National Coalition Party receives financial support from many different donors.
The government is expected to submit a formal statement to Parliament on Tuesday.
Members of Parliament have been recalled during the summer recess, an uncommon move in Finland, to debate the subsidy process, lobbying practices and the actions of government ministers.
The debate could end with a vote of confidence on either the government as a whole or individual ministers.
Orpo said he is prepared to answer lawmakers’ questions and does not believe his position is in danger.
“I am not worried, but I do not want to give the impression that I do not take this seriously,” he said.
