Economic policy

The Government Programme directs the implementation of economic policy. The Government’s objective is to improve the standard of living of Finns, turn the Finnish economy on to a sustainable growth path and reverse the trend of indebtedness, which jeopardises wellbeing. The priorities of the Government’s economic policy are economic stability, employment, economic growth and safeguarding welfare services. The Government is committed to balancing general government finances in order to ensure the wellbeing of the people and the sustainable development of the economy. 

When preparing the Government Programme, it was estimated that halting the trend of indebtedness requires strengthening general government finances by a total of EUR 9 billion over the course of two parliamentary terms. According to the Government Programme, the Government aims to strengthen general government finances by EUR 6 billion during this parliamentary term. A longer-term goal is to balance general government finances and set the debt ratio on a downward path towards the level of the other Nordic countries.

During the government term, the Government has decided on a package of measures totalling approximately EUR 10 billion aimed at stabilising the debt ratio by the end of the government term. The measures included in the package have been decided in the Government Programme, in spring 2024 and in autumn 2025. The Government will monitor the implementation of the set of measures and, if necessary, react with compensatory measures if the package threatens to fall short of the target level.

 

The fiscal policy act (Act on a National Framework for Fiscal Policy, 1440/2025) and the Act on the Economic Policy Council (1441/2025) contain national legislation on the implementation of the EU's new fiscal policy rules. According to the fiscal Policy Act, the management of general government finances will in future be steered by the targets set by the Government for the combined nominal budgetary position of central and local government. The four-year target for the parliamentary term is set at the beginning of the parliamentary term for the last year of the parliamentary term. The cross-parliamentary target will be set by the middle of the parliamentary term as an average budgetary position for the next eight-year period. The objectives are prepared by a parliamentary working group.
 

Contact information

Senior Ministerial Adviser
Marja Paavonen
0295 530187
marja.paavonen(at)gov.fi