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Finland warned by EU over public spending

The EU Commission says that Finland’s planned spending in 2020 could breach fiscal rules.

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Finland was warned by the EU about its public finances on Wednesday. Image: Jyrki Lyytikkä / Yle
  • Yle News

The European Union has warned the Finnish government that its spending plan for next year could breach union-wide rules governing public finances.

Finland had been asked in October to provide the EU Commission with an explanation for its spending plans.

The response from the Finance Ministry was that next year’s larger deficit in the state finances is an exception, and the government aims to correct it in the following years.

That plan was judged as insufficient by the IMF in a separate verdict delivered on Tuesday.

The EU Commission does not regard Finland’s finances as especially concerning, because the country is not expected to exceed the debt limit of 60 percent of GDP.

The commission also warned Belgium, Spain, France, Italy, Portugal, Slovenia and Slovakia.

Germany and the Netherlands, on the other hand, were told their debt levels were so low they could increase spending to stimulate demand.

Greece and Ireland, which both received bailouts for their state debt, have met the requirements of EU budget monitors.