The Government Programme directs the implementation of economic policy. The economic policy of Prime Minister Antti Rinne's Government Programme aims to increase wellbeing. This means ecologically and socially sustainable economic growth, high employment and sustainable public finances.
The key economic policy objectives for the government term are:
- The employment rate will be raised to 75 per cent and the number of people in employment will increase by a minimum of 60,000 by the end of 2023
- Given normal global economic circumstances, Finland’s general government finances will be in balance in 2023
- The Government’s decisions will decrease inequality and narrow the income gaps
- The Government’s decisions will put Finland on a path towards achieving carbon neutrality by 2035
The Government’s economic policy framework, the key fiscal policy objectives and the central government spending limits procedure to be observed during the parliamentary term are decided in the Government Programme. The first General Government Fiscal Plan of the parliamentary term specifies the measures and the fiscal policy objectives for each year.
Finland’s economic policy is also determined by EU legislation, which obliges Member States to keep public finances in balance and to avoid excessive deficits and indebtedness, so that public finances are on a sustainable basis also in the long term.
The EU’s fiscal rules have been tightened through the “Six-Pack” legislative package adopted in 2011 (including the Budgetary Framework Directive), the Fiscal Compact agreed in 2012, and the “Two-Pack” regulations adopted in 2013. The Budgetary Framework Directive and the Fiscal Compact require that Member States put in place on a national level fiscal policy rules as well as monitoring procedures leading to compliance with EU requirements. The Budgetary Framework Directive also requires the preparation of a fiscal plan covering the whole of general government finances. The Two-Pack regulations relate to advance monitoring of Member States’ budgetary plans.
The Fiscal Compact and partly also the Budgetary Framework Directive have been implemented in Finland through the Fiscal Policy Act (869/2012), which came into force at the beginning of 2013. The parts of the Budgetary Framework Directive relating to the fiscal plan have been implemented by the Government Decree on the General Government Fiscal Plan (120/2014).
Senior Ministerial Adviser