“We need to ask the question whether the current framework procedure for the Finnish economy is such that it will enable us to make the large investments we will need over the next 10 to 15 years,” Marin said.
Prime minister Sanna Marin (sd) wants to reform the framework procedure by which a certain expenditure ceiling has been agreed for the term of office.
Marin raised the issue in the presidency exam, which was organized in connection with the Economic Defense Course of HS and Aalto EE.
According to him, the fight against climate change will require “quite record-breaking” investments from the public side as well.
“We need to ask the question of whether the current framework procedure for the Finnish economy is such that it will enable us to make the large investments we will need over the next 10 to 15 years,” he said.
He called for a reform of the framework procedure so that “investment in the future is genuinely possible”.
Expenditure frameworks set an annual ceiling of about 80 percent of state budget expenditures.
Traditionally, if the government has wanted to give more money somewhere and the margin for the framework is not enough, it has to cut it somewhere else.
The purpose of the system is to control the growth of government expenditure. It has been in use since 2003.
However, the framework was abandoned in spring 2020 due to the interest rate crisis. The level of expenditure agreed at the beginning of the election period will be exceeded by approximately EUR 900 million next year and by approximately EUR 500 million in 2023.
The coronary crisis and with climate change the idea has also emerged in the EUthat “green” investments would no longer be included in EU debt rules.
Also the Minister of Finance Annika Saarikko (center) referred to this in his reply to Marin.
“This is a debate that is also intensifying at European level,” he said. According to him, preparing for it nationally is important.
However, Saarikko pointed out that it becomes “extremely difficult to define which are all green future investments that would somehow be debt calculated differently from other debt”.
Same said the chairman of the opposition Finns Riikka Purra.
“It’s a pretty wide road, yes,” he warned.
According to Purra, some EU countries may abuse the fact that part of the debt could be counted as “green” and excluded from the debt rules.
In an interview with HS in September, an economist Daniel Gros a research institute from CEPS believed the EU would end up with this all-inclusive solution, which he calls a “mild scam”.
The presidency exam can be viewed in its entirety here: