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Budget talks still deadlocked, minister says

Many ministers said compromises were needed, a sentiment which all parties seemed to agree with.

Maria ohisalo Säätytalon neuvotteluhuoneessa.
Interior minister Maria Ohisalo (to left) in the House of the Estates on Friday. Image: Jussi Toivanen / Valtioneuvoston kanslia
  • Yle News

State budget talks between Prime Minister Sanna Marin's (SDP) five-party coalition government were in deadlock on Monday evening.

Just before 6:30pm, interior minister Maria Ohisalo (Green) told reporters it appeared that the talks would continue for another day.

"Unfortunately, it may still take time, but it's hoped that a solution will be found," the minister said.

"Now I think it's already quite late, [an agreement] may not come today," Ohisalo said on Monday evening.

The government leaders spent Monday in a sixth day of talks after failing to come to agreement over the weekend. The negotiations were originally scheduled to last only two days and wrap up last week.

According to media reports, the disagreements concern policies and plans amounting to between 200-500 million euros. However, none of the ministers who arrived at the talks, including Marin, confirmed such amounts.

It is known that the Centre has demanded hundreds of millions of euros in budget cuts to the proposed financial framework, which has put the party in conflict with its left wing coalition partners.

As ministers filed into Helsinki's House of the Estates, nearly all who spoke to reporters said there was a need for compromise.

Peat and employment

Other sticking points include the government's plan to phase out of peat burning for energy.

Just over a week ago, Centre Party chair Annika Saarikko said that Finland had reduced peat burning too rapidly. The carbon-rich process is behind 4-6 percent of Finland's energy production but accounts for 12-15 percent of the country's energy production emissions.

Saarikko, arriving at the talks shortly after they resumed on Monday, said that she hoped that the coalition would continue discussions.

"A lot of things need to be changed. According to some they are minor issues, but it is also about principles. We are talking about the cornerstone of Finland's economy. For example, the fact that yesterday's proposals included tax increases of hundreds of millions of euros did not move things in a more positive direction," Saarikko said.

Another area of disagreement within the government are proposals to reduce the country's unemployment rate.

On Sunday PM Marin said the talks had become increasingly difficult, adding that she had offered several compromises on proposals, but did not mention specifics.