Finland to take further austerity measures, if EU wants: PM

Prime Minister Petteri Orpo on Wednesday said that Finland will take further austerity measures, if the European Union recommends for more saving.

In his New Year’s message, the Premier said that the difficult employment situation, Russia’s war in Ukraine and the permanent closure of eastern border affected country´s economy, according to an official press release.

“If the European Commission’s recommendation is even more savings, that is what we will do,” he said.

He said that the economic growth has stagnated while the ageing population, greater defence needs and rising interest expenses increased public expenditure and the country will continue to face these challenges next year and for many years to come.

“Our Government has sought to allocate general government savings to the working-age population, who have the best opportunities to influence their situation. The difficult employment situation has stifled these opportunities,” said Orpo.

He said that the EU’s Economic and Financial Affairs Council will decide on opening an excessive deficit procedure for Finland and will adopt recommendations to rectify the situation in January.

Speaking on the ongoing negotiations on Ukraine peace plan he said Europe continues to stand with Ukraine so that the outcome of the negotiations is one that Ukraine can accept.

“Unfortunately, Russia has shown no signs that it wants to work towards peace. Putin’s threatening rhetoric has only intensified,” he said.

He also said that Russia will continue to be a threat to all of Europe – today, tomorrow and far into the future.

“I have said this several times, and I want to say it again: we are not afraid of Russia. We are prepared,” said Orpo.

He underscored the need for more things to work for together in the coming year and need to be willing to succeed together.

“That way, we will succeed. When we look for solutions together and believe in our potential, we can overcome even the most difficult challenges. I wish you all a Happy New Year!” said the Prime Minister.