Finland\u2019s government has ordered the finance ministry to prepare measures in case the economic impact of the Middle East war worsens, as rising energy prices begin to affect households.<\/p>\n
<\/p>\n
Prime Minister Petteri Orpo said the ministry will assess options to respond if the crisis deepens and continues over time. Speaking after a government meeting, Orpo said the conflict has already led to higher fuel prices and rising interest rates, with further pressure expected on heating, transport and food costs.<\/p>\n
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\u201cWe cannot make rushed decisions,\u201d he said. \u201cEvery euro must be used in the best possible way.\u201d<\/p>\n
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The government has faced repeated calls to support households as costs increase. Oil prices have risen following attacks on Iran and disruption to shipping in the Strait of Hormuz, while borrowing costs have also climbed.<\/p>\n
<\/p>\n
Orpo said the government has received updates from the foreign ministry and the National Emergency Supply Agency on the situation and its potential impact on Finland.<\/p>\n
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\u201cIf the crisis continues and deepens, it will be seen in heating costs, transport costs and food prices,\u201d he said. \u201cThese effects will be hard on households and the economy.\u201d<\/p>\n
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The finance ministry has now been tasked with examining tools that could be used if conditions worsen. Orpo described this as the most concrete step available at this stage.<\/p>\n
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Finance Minister Riikka Purra said the length of the conflict will determine the scale of its economic impact on Finland and Europe. She warned that public finances are already under strain.<\/p>\n
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\u201cWe have a very tight situation in public finances,\u201d she said. \u201cWe do not have buffers for unexpected crises or war-related shocks.\u201d<\/p>\n
<\/p>\n
Purra added that Finland has less room to act than some neighbouring countries. \u201cWe do not have the same flexibility in the economy as Sweden,\u201d she said.<\/p>\n
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The government has not yet committed to specific measures. Proposals raised in political debate include reducing fuel taxes or lowering the biofuel distribution requirement, which sets quotas for renewable fuel use.<\/p>\n
<\/p>\n
Sweden has already proposed temporary cuts to petrol and diesel taxes and increased electricity support in response to rising costs.<\/p>\n
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In Finland, the issue has gained urgency after political leaders called for action on fuel prices earlier this week. However, Orpo said decisions will depend on how the situation develops.<\/p>\n
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The government discussed the economic outlook and the impact of the Iran conflict during its budget planning session. Further decisions are expected as assessments continue.<\/p>\n
<\/p>\n
The International Energy Agency has warned that the conflict could trigger a severe global energy crisis, adding to pressure on European economies.<\/p>\n
<\/p>\n
HT<\/p>\n
<\/p>\n
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