Finland faces severe fiscal strain, finance minister admits

Finland’s Finance Minister Riikka Purra has admitted that the country is facing an extremely difficult financial situation amid preparations for new budget cuts for 2027–2030, according to remarks reported by the public broadcaster Yle.

The minister stressed that Finland’s public debt-to-GDP ratio has approached 90 percent.

She noted that economic growth has become nearly zero, while unemployment remains high. Another key pressure factor on the budget is the country’s ageing population.

In response, the government has announced cuts to social welfare and healthcare spending amounting to €240 million. Purra insisted that the measures would not affect the most vulnerable groups.

“We have sought to target increases at those able to pay. We also had to raise health centre fees. These are ultimately decided by the wellbeing services counties, but the government sets the framework,” the finance minister said.

By Jeyhun Aghazada