Finland\u2019s political parties have drawn sharp lines over tax rises and spending cuts as they prepare for the 2027 parliamentary election. The Left Alliance has presented measures worth more than \u20ac9 billion, centred on higher taxes, while the National Coalition Party and Finns Party want most fiscal adjustment to come from lower public spending.<\/p>\n
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The dispute dominated parliamentary groups\u2019 summer meetings on Tuesday and Wednesday, with parties setting out positions ahead of the autumn political term and next year\u2019s election.<\/p>\n
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Left Alliance chair Minja Koskela said in Jyv\u00e4skyl\u00e4 that her party had assembled measures worth about \u20ac9 billion to strengthen public finances. She said the package would not be implemented during a single four-year parliamentary term.<\/p>\n
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\u201cA \u20ac9 billion one-off adjustment would, with high probability, become a brake on growth,\u201d Koskela said. She said decisions would need to reflect the economic cycle and employment conditions.<\/p>\n
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The Left Alliance proposals rely on taxes rather than cuts to benefits and public services.<\/p>\n
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The largest single measure would change income, capital gains and dividend taxation. The party estimates that the changes would raise about \u20ac3 billion. Its plan includes stronger income-tax progression, closer alignment of earned-income and capital-income tax scales and removal of a tax benefit for dividends from unlisted companies.<\/p>\n
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The party would also raise corporation tax to 21 per cent, which it estimates would produce \u20ac1.3 billion, and introduce a wealth tax on large fortunes worth about \u20ac1 billion.<\/p>\n
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Other proposals include taxes on financial activity, aviation, sugary products, packaging, mining waste and some securities transactions. The party would restore fuel taxation to its 2023 level and link it to an index.<\/p>\n
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It also proposes removing several tax subsidies linked to fuels, forestry and fossil-energy use.<\/p>\n
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One element differs from the tax measures. The party proposes counting about \u20ac1 billion in indirect costs from Finland\u2019s conscription system towards defence spending when measuring national commitments.<\/p>\n
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Koskela rejected the estimate that Finland needs \u20ac8 billion to \u20ac11 billion in net fiscal adjustment during the next parliamentary term.<\/p>\n
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\u201cNo party will implement the debt-brake adjustment of \u20ac8\u201311 billion,\u201d she said. She said an adjustment of that scale would threaten welfare-state services.<\/p>\n
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