due to take effect in 2031<\/a>, requires the debt-to-GDP ratio to decline by an average of 0.75 percentage points each year. Current projections place public debt at 88.5 per cent of GDP, with a long-term target of 40 per cent.<\/p>\n
<\/p>\n
The report proposes an alternative approach centred on tax increases and targeted investment. It states that tax measures have smaller negative effects on growth compared with spending cuts.<\/p>\n
<\/p>\n
Kyyr\u00f6nen suggests that tax increases of around \u20ac8 billion, combined with \u20ac5 billion in public investment or equivalent private sector support, would meet fiscal targets while supporting economic activity.<\/p>\n
<\/p>\n
Proposed tax measures include higher corporate tax rates and tighter dividend taxation for unlisted companies. The report also refers to potential increases in capital and environmental taxes, citing previous research.<\/p>\n
<\/p>\n
Investment priorities outlined in the report include transport infrastructure, housing, higher education, venture capital, and industrial policy linked to the green transition. These measures aim to support employment and demand during a period of weak growth.<\/p>\n
<\/p>\n
The findings come as political parties prepare for the next government term, with fiscal policy expected to dominate negotiations. The current administration has relied on spending cuts and tax reductions, including a planned reduction in corporate tax from 20 per cent to 18 per cent.<\/p>\n
<\/p>\n
The report warns that without a shift in policy, Finland risks entering a repeated cycle of austerity. \u201cThere is a risk of a vicious circle,\u201d Kyyr\u00f6nen said, referring to future adjustment pressures under European Union fiscal rules.<\/p>\n
<\/p>\n
HT<\/p>\n","protected":false},"excerpt":{"rendered":"A new economic report has challenged Finland\u2019s fiscal strategy, warning that planned spending cuts tied to the debt…\n","protected":false},"author":2,"featured_media":58676,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[87],"tags":[32363,158,16993,32369,32368,113,32365,32367,32366,32364],"class_list":["post-58675","post","type-post","status-publish","format-standard","has-post-thumbnail","category-helsinki","tag-debt-brake","tag-finland","tag-finland-economy","tag-fiscal-policy-finland","tag-gdp-impact","tag-helsinki","tag-otto-kyyronen","tag-public-spending-cuts","tag-tax-increases","tag-utak-report"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@dk\/116379046823103591","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/posts\/58675","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/comments?post=58675"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/posts\/58675\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/media\/58676"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/media?parent=58675"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/categories?post=58675"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/tags?post=58675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}