State secretary Raimo Sailas told Yle on Friday that the general economic climate in Finalnd had worsened over the summer. The ministry’s economists are also increasingly of the opinion that Finland is staring down at a period of slow growth, according to Sailas.
But there was one bright spot: the state secretary said he agreed with premier Jyrki Katainen’s comments earlier this week that the government won’t have to make new budget cuts during framework budget talks, despite the ongoing eurozone crisis.
"We have to wait and see where the world is headed and if it will affect Finnish economic policy," said Sailas, who will soon sit in on the 35th budget framework talks of his career.
Like Katainen, Sailas said he believed that the savings measures that have already been made appear to be sufficient to break the cycle of state indebtedness. But the premier noted that the government may contemplate new cuts next spring if the economic situation worsens.
The Finance Ministry starts its internal budget framework talks on Monday. Cabinet ministers will later thrash out the details of the budget proposal before sending it on to Parliament for approval.