The government has not yet agreed on the transfer of employment services to municipalities, but Saarikko believes that the reform must reach Parliament in time.
When prices are rising by as much as six per cent and wages by only a couple of per cent, and mortgage rates are starting to rise, with government parties having a hard time ahead of next spring’s parliamentary elections. The declining standard of living is not a very attractive election theme.
The Treasury minister Annika Saarikko (center) lists possible reductions in VAT on food, a reduction in petrol tax and a reduction in income tax as possible answers.
“I say directly that a reality where all this would be done is not possible,” says Saarikko in an interview with STT.
Saarikko has previously relied on income tax relief, and now, in his opinion, more and more grounds have begun to emerge for it. However, he promises nothing.
“Of course, we also have to think about where the state gets its revenue if income taxes are reduced. In that case, other responsible parties in society must also take care of their own share, ”says Saarikko.
With responsibility he appeals to labor organizations, for example.
The labor market situation is difficult, as carers’ pay increases are still inappropriate and private negotiations are about to begin in the autumn. Trade unions have soared and said alternately they want at least the same as other unions.
“Of course, the Ministry of Finance is preparing for the autumn, and we look forward to the debate on the upcoming payroll. I don’t think I’m the first finance minister to appeal to wage moderation, but now I appeal strongly. ”
According to Saarikko, history teaches too bitterly what will happen if the solutions are not moderate.
“Since the biggest cause of inflation is the price of energy, it is not good to accelerate inflation further with tough wage settlements. Inflation is a spiral and should be avoided, ”he says.
The archipelago also says that it is even more convinced that every Finn of working age and able to work must work. The transfer of employment services to municipalities is still pending. The proposal was sent unfinished for a round of opinions ending on 27 June. According to Saarikko, the reform must be submitted to Parliament during this term.
“It’s tight, but it needs time. It is a major structural reform for which the Ministry of Finance has also been able to reduce the impact on employment. ”
The center is on different lines than other parties who want at least 20,000 people of working age to live in the municipality that provides employment services. The city center wants flexibility in the population base so that municipalities form natural alliances without planning.
“Final negotiations on this are still ahead.”
Instead of individual employment measures, what is crucial now, according to Saarikko, is that companies retain faith in the future and that labor is available. More work-related immigration is needed, and the center is ready for major reforms alongside it.
“I don’t think the current Finnish Immigration Service will be able to solve this. The purpose of the agency is to investigate barriers, and experts should now be welcomed. Things have turned for the better, but a big change of thinking is needed. ”
The archipelago believes that at the party meeting next weekend, too, the central people will be addressed above all about the basics and the well-being of the people. Rising prices are hitting rural oil-heated homeowners and long-distance motorists the hardest, as the party chairman is well aware.
On the other hand, he says that he has run for the presidency in 2020 because there are also a lot of opportunities for the center during this time.
“I would venture to say that the world has come to the center’s lap. The things that are now at the top of the list for all Finns are the most familiar themes in the city center: Finnish food, its availability, price and position as a primary producer, and domestic energy. Everyday life has become multi-location for many, and the cottage boom is hot. ”
The day-to-day challenges of this will be solved by the Minister of Finance, although “there is no manual on the shelf of the Ministry of Finance to manage the public finances in a time of high inflation in the single currency”.
Saarikko emphasizes that the primary responsibility lies with the central banks, whose solutions are now awaited.
“Regardless of how central banks operate, there is an everyday sight for Finns where the basics make a bigger dent in their wallets.”
The archipelago recalls that support packages have already been put in place and that their effects are only now beginning to be felt. Some are still under consideration by Parliament, such as temporary fuel subsidies for transport companies.
In addition, the government has, among other things, brought forward the increase in the index of social security benefits linked to the national pension index, increased the reduction in commuting and reduced the obligation to distribute transport fuels.
“I think it’s likely that prices will be so high for at least another year, so I don’t rule out any additional means. At the same time, I have to say that tax revenue must also be collected. The options need to be explored carefully. ”
The state must also prepare for rising interest expenditure. That means less room for other things.
“There is a generation of decision-makers in power, to which I belong and who have worked in politics during a time of cheap money, low interest rates, but debt matters. I still stand straight with the decisions that this government has made, ”even though they have meant additional debt for Finland.
The archipelago says that he has not invented anything greater than what is affected by politics than ensuring security and independence and preserving human lives during the Corona.
Saarikko will receive Paavo Väyrynen, a veteran who opposes NATO membership, as a counter-candidate at the party meeting.
“Elections are part of party life, and the pursuit of leadership is everyone’s right. For Paavo, their pursuit has been a familiar endeavor for half a century, ”Saarikko formulates and adds that the centrists settled behind NATO quickly and in large numbers in the spring.
He rejoices that, after the Corona period, the “Central People who catch fire in rallies” will finally be able to be in large numbers over the weekend in Lappeenranta, Eastern Finland, where the effects of the Russian war will be felt even more strongly than elsewhere.
The government is due to resolve the situation in eastern Finland in the autumn budget dispute. The renovation of the Saimaa Canal has been one of the largest projects with Russia, and now the EUR 90 million earmarked for it has been frozen.
“I think it is justified to look for a new allocation for money in Eastern Finland, but it must be done carefully. The key is to ensure that the region receives investment. ”
It is annoying for the party meeting to have permanent support in the lower reaches of the city center. In Yle’s latest poll, support for the city center fell to 12.1 per cent. Saarikko reminds that it is not worth putting too much weight on surveys yet.
“I have come to party leadership at a time when the center has a narrow gap, demanding years of responsibility behind, seven years on the board. Sure, it shows, but I’m sure we’ll get up again. ”
Center is struggling, according to him, with the Coalition Party, which holds the number one position in particular, and which Saarikko intends to challenge strongly.
The possibility of a bourgeois government after the next parliamentary elections has also been talked about in public. According to Saarikko, a lot of knockers can be seen at the door of the city center.
“I have said that the center is a cooperative and solution-oriented party, but we need more trust from Finns. That is what I will be focusing on as the party chairman for the next ten months. ”
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