PM Orpo, government enter "extremely difficult" budget talks

On Monday morning government parties agreed on the need to make more savings, but not on how to find the money.

Petteri Orpo, his hand up in the air.
Petteri Orpo's government was looking for savings in the 2025 budget. Pitcture from the morning of 15 April when he started budget talks with coalition partners. Image: Henrietta Hassinen / Yle
  • Yle News

The Finnish government enters two days of crucial budget talks on Monday aiming to find new spending cuts and tax rises to plug holes in the 2025 state budget.

Prime Minister Petteri Orpo (NCP) told reporters that he expected discussions to be "extremely difficult".

The budget already contains austerity measures worth around six billion euros, but by Tuesday evening Orpo says he wants to agree another three billion euros' worth of savings.

"Everyone surely understands that this will be extremely difficult," said Orpo.

The so-called "kehysriihi" is a meeting where the government negotiates a plan for the public finances in the coming years. It is forecast to last until Tuesday evening, and will look at ways to encourage economic growth as well as balancing budgets.

"This won't work if we only focus on austerity, we need to concentrate on growth and creating a future as well," said Orpo.

The leadup to the talks have been dominated by simmering tensions within the coalition about what and how much to cut.

Finance Minister Riikka Purra (Finns) has said that pensions must be up for debate, while the National Coalition Party has been strongly opposed to hurting older Finns.

Cuts so far have especially focused on working-age people, younger people and single-parent families.

VAT increases are another unpopular but likely measure, with certain types of tax deductions also possible targets for cuts.

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