The idea of delaying austerity has met with consternation from President Sauli Niinistö and others, but a report out today suggests that Finland has little option. Spending cuts and tax hikes made now risk stunting economic growth, and that’s a risk politicians and economists don’t want to take.
Martti Hetemäki, the senior civil servant at the Ministry of Finance, found in his report that making the recommended three billion euros of savings in one go.
Now Prime Minister Jyrki Katainen is to seek agreement with his opponents to ensure that the savings plan does not become a political football in the run-up to the 2015 election.
“I will invite the leaders of both opposition parties for a discussion with the chairs of the government parties at the end of February,” said Katainen. “The goal is to survey the opposition parties’ views on spreading austerity (over a number of years).”
The largest opposition party, the Centre, is leading the polls by a wide margin and expected to win the next election. That would mean the party’s leader, Juha Sipilä, would be asked to form a government in which he would serve as premier.