The impact of Brexit on the economy of Åland Islands is a significant concern due to its unique legal status within the EU. Åland is part of the EU through a special protocol that allows for specific exemptions, such as maintaining regional citizenship regulations and being exempt from certain tax harmonisation processes within the EU. The demilitarised and neutralised status of Åland, with historical roots, is crucial to its legal position and security dynamics in the Baltic Sea region.
The autonomous status of Åland under Finnish sovereignty provides a stable environment for investment, enhanced by its demilitarized and neutralized status that boosts its security profile. Specific advantages, such as tax exemptions on goods sold to passengers traveling between Åland and other EU member states, contribute to its attractiveness for investors. However, uncertainties related to Brexit and its potential impact on trade relations between Åland and the UK pose challenges that investors need to consider.
Sustainable business practices and environmental regulations are integral to Åland’s development. The island focuses on initiatives like renewable energy projects, such as hydrogen generation, and adopts a partnership approach to sustainable tourism management. The Council in Åland actively engages with governments and partner organizations to address potential Brexit effects on key sectors like farming, fisheries, and tourism, ensuring proactive measures are in place to secure a strong economic future for the islands. By prioritizing sustainability and environmental protection, Åland aims to position itself for future growth while preserving its unique natural assets.
Navigating the opportunities arising from its special status, addressing challenges related to Brexit’s uncertainties, and prioritizing sustainable practices are crucial for Åland Islands to continue thriving economically while maintaining its distinct legal position within the EU framework. The demilitarized and neutralized status of Åland, along with its unique legal status within the EU, make it a unique and attractive location for investment, despite the challenges posed by Brexit.