Presenting the OECD's latest economic survey of Finland in Helsinki on Wednesday, Ángel Gurría was effusive about Finnish fortitude, knowhow, and the confidence in the country shown by credit rating agencies.
Pointing to these, he said that Finland has no need to rush measures to balance the economy.
"Tax increases and spending cuts will indeed work before long, but there is a third element to the equation, time. Not everything has to be done in six months or a year. Even though this would mean more debt growth than forecast, even in that case Finland would still have one of the OECD countries' lowest rate of indebtedness," said Gurría.
Minister of Finance Jutta Urpilainen welcomed Gurría's view on the issue. The Finnish government is currently examining the timetable for implementing a further three billion euros in austerity measures.
"His remarks back up those economic experts who have argued that three billion in tax rises and spending cuts in a single year's budget would increase unemployment and weaken economic growth. Since the negative effects are so great, it is better to stretch savings out over several years," Urpilainen stated.
Even so, according to OECD Secretary General Ángel Gurría, Finland should not delay decisions that could break the upward spiral of public sector debt. He stressed structural measures contained in the organization's latest survey, in particular municipal mergers and raising the retirement age.