Losing an election is bad enough, but in Finland parties have to also evaluate the impact on their finances. Several parties are set to lose money as well as MPs after Sunday's election, and that will affect their operations over the next four years.
Parties get state funding based on how many MPs were elected in the previous election. At the moment, each MP is worth a party support payment of 178,175 euros per year.
In the last parliamentary term every party got 712,700 euros in state funding. That means each party that wins seats gets more money, and each lost MP represents a loss of party funding.
The initial estimates for this parliamentary term could change, as we do not yet know the level or state funding from 2024 onwards.
Parties losing seats on Sunday were the Centre (8 MPs), the Greens (7 MPs) and the Left Alliance (5 MPs).
Based on current estimates, the Centre will therefore miss out on around six million euros, compared to their funding if they had retained those MPs.
Party secretary Riikka Pirkkalainen says that some difficult cuts are needed to save more than 1.5 million euros a year.
"Four years ago we set out the last economic restructuring [after losing 18 seats at the 2019 election]," said Pirkkalainen. "We succeeded so well that we are now debt-free with strong finances. Thankfully we are not adjusting from a weak financial position."
Parties' state funding covers a big chunk of the Centre Party's national operations. For example membership payments are used to fund local party organisations.
"This state funding is the only significant source of income for the national party," said Pirkkalainen. "The fundraising we do is quite small in volume compared to the party support payments."
Pirkkalainen did not specify what might be cut to fund the deficit, as the party's plans remain open. The party board will make the final decisions on any cuts.
One thing is clear, however: It will not be easy to find savings.
"Economic efficiency has been sought already in the savings we made four years ago," said Pirkkalainen. "So there isn't anything unnecessary left to cut in the party office. There is no rainy day fund from which we can magically conjure up this money.
Greens' Liikanen: Presumably restructuring is ahead
The second biggest losses in the election were for the Green League. The party is set to miss out on five million euros which would have come its way if it hadn't lost seven MPs.
Party secretary Veli Liikanen said that savings will be sought in multiple ways.
"This election defeat is a big blow for the Greens' finances," said Liikanen. "Our party does not have lots of capital or committed interest groups that would continually offer big funding."
The last time the Greens had to adjust to reduce state funding was after the 2011 elections. The party lost three MPs that year.
No budget cuts have been decided yet. The party does not own its own offices, but rents them. And Liikanen says they will have to examine every line in the budget for savings.
"This is such a big loss of income that sure it means presumably we will have restructuring talks with staff in the future," said Liikanen.
The Left Alliance is also predicting restructuring. The loss of five MPs means that they will lose out on around 3.5 million euros over the next four years. Decisions on where to trim the budget will be made in the near future.
"Income reductions totalling 900,000 euros a year mean in practice staff cuts," said party secretary Anna Mäkipää.
Mäkipää sees the change as so drastic that no stone can be left unturned.
"We should go through everything, from costs associated with the digital systems and administrative spending. So pretty much everything."
Reduced funding can also affect the party's ability to prepare for the next elections.
"We have to consider what kind of campaign budget we can afford," said Mäkipää.
The Centre Party's Riikka Pirkkalainen said that spending on elections can only happen if the party's finances are in order.
"It is absolutely clear that when we are forced to cut back, it will affect election work in the future," said Pirkkalainen.
State funding rewards the winners
The parties have different rewards for their vote hauls. Anna Mäkipää says that the vote threshold for small parties to get new MPs has risen quite high for small parties in some places.
"So sure, it's party time for the bigger ones," said Mäkipää.
Pirkkalainen disagrees, saying that the system treats parties equally.
"Financial restructuring is necessary for all parties in turn after different elections," said Pirkkalainen. "It is also an indication that the size of the state funding is not the thing that decides elections.
Liikanen also says there's not much wrong with the system. The Greens also enjoyed increased funding after elections in 2015 and 2019. People should recognise that the parties have different resource levels, however.
"Party funding itself is transparently distributed, and the rules of the game are the same for everyone," said Liikanen. "The winners get more money and the losers get less. If during the next four years someone wonders why one party's message is more visible than another's, then sure money does affect that."