Fiery Minister of Finance, Riikka Purra (PS), announced at a tax seminar that the Finnish government is abandoning its ambitious goal of reducing the public economy deficit to one per cent of GDP by 2027. The goal, set during coalition negotiations, has proven challenging due to unexpected economic difficulties.
The Ministry of Finance’s latest economic forecast indicates the deficit will be 3.7% in 2024, gradually decreasing to 2.3% by 2027, requiring an additional four billion euros in austerity measures. Despite this setback, the government remains committed to controlling the debt ratio.
Prime Minister Petteri Orpo (NCP) maintains that both deficit and debt ratio goals are priorities, emphasizing the need for economic reforms to stimulate growth. While acknowledging the challenges ahead, he remains optimistic about the government’s ability to surpass current forecasts.
The government will assess the feasibility of achieving both goals and consider further fiscal adjustments if necessary. The focus remains on ensuring long-term economic stability and growth.
Aleksi Teivainen – HT