The Finnish National Reform Programme for Growth and Jobs
When introducing the second three-year period of the revised Lisbon Strategy in the meeting in March 2008, the European Council confirmed that the present integrated guidelines were to remain valid and were also applicable in the period 2008?2010. In addition, the European Council emphasised that in the new period the most important issue is to implement the reforms.
The Finnish National Reform Programme 2008?2010 has been prepared according to European Council guidelines and draws on the Government Programme, the Government Strategy Document and other Government guidelines. There is a new section included where Finland presents the measures by which it will respond to the points to watch it has been given. In its statement in January 2008, the Council advised Finland to continue reforms to improve competition and productivity in some service sectors, implement announced measures to reach its Kyoto targets, continue reforms to address bottlenecks in the labour market and take into account the contribution economic migration can make. The Government endorsed the Reform Programme on 9 October 2008.
Promoting productivity and competitiveness
There are 11 priority areas in the broad economic policy guidelines and employment guidelines of the Finnish National Reform Programme. The goal of macroeconomic policy is to ensure economic stability and sustainable public finances. This highlights the need to make provision for the ageing of the population, curbing public spending and boosting productivity to safeguard the provision of public services.
Finland?s microeconomic policy priorities aim to bring about structural reforms to strengthen competitiveness and productivity by promoting expertise and innovations, fostering entrepreneurship, enhancing market functioning, creating a better infrastructure in ICT and transport and advocating an energy and climate policy that supports sustainable development.
The main objectives of employment policy are to raise the employment rate and to improve the functioning of the labour market. Key measures aimed at achieving these objectives consist of extending working careers, improving the incentive effect of tax and benefit systems and wage formation, and better matching of labour demand and supply.
The Programme also assesses the current situation and future structural policy challenges. Finland?s position is good at the moment, but the economic outlook is uncertain and involves a number of risk factors. In the opinion of the Council of the European Union, Finland has made excellent progress in implementing the National Reform Programme in the period 2005?2008 in all four priority areas specified by the European Council: investment in expertise and innovation, improving business potential in small and medium-sized enterprises, improving employment opportunities, and energy and climate policy.
The Programme includes a section on regional policy and an appendix on the Finnish flexicurity model.
The Programme was discussed in the Government evening sessions while it was being drafted, and Parliament was kept informed during the process. In line with the recommendations of the European Council, various stakeholders have had a number ofopportunities at different stages of preparation to present views on the programme.
Inquiries:
Mr Jukka Pekkarinen, Director General, tel. 358 (0)9 160 33191 and
Mr Ilkka Mytty, Financial Counsellor, tel. 358 (0)9 160 34967