Editorial|The direction of Finland’s indebtedness and unemployment differ from the general line of EU countries.
QIf you compare the development of the Finnish economy with other EU or euro countries, the trend in Finland deviates from the general trend in a couple of cases. Unfortunately, for the worse.
The debt of Finland’s public finances is increasing. As a general rule, the debt burden in Europe is slowly melting – even in the euro crisis countries, which in recent years were looked down upon in Finland. At that time, the Finns would think that money from the north must flow to the south as crisis aid, even though the countries of the south have ruined their own economies.
According to the Ministry of Finance’s budget proposal, Finland earns 76 billion euros and eats more than 88 billion euros. The difference of more than 12 billion euros must be taken from the debt market. Credit rating agency Fitch evaluate recently that Finland’s debt ratio will rise to 87 percent in 2028.
Last year, the rate of indebtedness was higher than in any other EU country. The momentum remains good and if Fitch’s assessment comes true, Finland will perhaps shake other countries off their heels. Of course, there are more indebted countries in Europe, but Greece, for example, is reducing its debt mountain – so it is going in the opposite direction.
MEven Finland’s employment development deviates from the general trend. Statistics Finland’s Chief Actuary Pertti Taskinen tells On the Tieto & Trends website, that employment in EU countries has risen in recent years and unemployment has remained unchanged. Not in Finland. Unemployment has risen second fastest among EU countries during the past year. Lithuania took first place. In Greece, the unemployment rate has decreased.
When the government starts to plan next year’s income and expenses, these two trends are sadly linked together. If the economy is believed to be booming due to increased consumption, any saving – however necessary it may be – eats away at consumerism at a time when unemployment is rising. The old people would say about the government’s budget contract that it resembles a magpie fighting on a tarred roof: when the beak rises, the tail catches.
The editorials are HS’s positions on a current topic. The articles are prepared by HS’s editorial department, and they reflect the magazine principle line.
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