Parliamentary working group for municipalities' future

VM001:00/2026 Development

The Government has appointed a parliamentary working group to prepare for the future of municipalities.

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Project number VM001:00/2026

Case numbers VN/839/2026

Set by Ministry of Finance

Term/schedule 26.2.2026 – 18.12.2027

Date of appointment 26.2.2026

Contact person
Suvi Savolainen, Neuvotteleva virkamies
tel. +358 29 5530122
[email protected]

Project status

Goals and results

The aim of the future-oriented work is to conduct parliamentary cooperation on what kind of municipality‑based system can sustainably and effectively promote well-functioning services for residents also in the future. The objective is to create a shared understanding of the situation of municipalities and their future development directions, to form on this basis a view of the municipal service promise, and to identify guidelines for the municipal reforms to be launched in the next parliamentary term.

The task of the working group is to review and form an overall situational assessment and development trends, as well as to prepare guidelines for different policy options. The work must take into account municipal sustainability and changes in conditions related to population, the economy, and the performance of statutory duties. The themes addressed include at least the financial situation and sustainability of municipalities, the statutory services and general‑competence tasks for which municipalities are responsible, the service promise, differentiation, democracy and municipal self‑government, inter‑municipal cooperation and the municipal structure, as well as the forms and interfaces of cooperation between wellbeing services counties and municipalities, and the state’s steering of municipalities.

The working group is to submit its interim report in December 2026 and its conclusions before the end of its term in autumn 2027.

Starting points

The role and responsibilities of municipalities have changed as a result of the reforms of employment services and social, health and rescue services. Municipal tasks now place greater emphasis than before on education and learning, employment, promoting vitality, developing their regions, and supporting regional economic growth. All of these are essential core functions of Finnish society.

At the same time, Finnish society is changing rapidly and is challenged by many simultaneous and complex issues. Municipalities, which are responsible for services for residents, already find themselves in very different situations and facing various types of challenges. Demographic trends, the situation of public finances and changes in economic structures and service needs all challenge municipalities' circumstances and their ability to organise services for their residents. The population is declining and ageing particularly in the outer areas of regions, and this development is expected to accelerate in the future. The falling birth rate reduces the size of child cohorts and challenges the equal provision of education services across the country. It also reduces the tax base of municipalities experiencing population loss, increasing the importance of proactive investment planning. On the other hand, urban growth poses different challenges for regional centres and large cities, for example in receiving population growth and managing segregation. In large cities and urban areas, population growth increases service needs and investment pressures. Municipalities' financial situations may vary even within the same size category. Nevertheless, the financial outlook for the municipal sector as a whole is challenging.

All these changing conditions and the increasing differences between municipalities affect the development of municipal revenues and expenditures, the equality of service provision, and challenge municipalities’ ability to fulfil their statutory duties. The change is both inevitable and significant, in municipalities losing population as well as in growing cities. These diverging conditions also affect the availability of personnel, municipal vitality, and the conditions for local democracy.

To safeguard municipalities’ future operating conditions, it is important to conduct a comprehensive discussion on the future of municipalities.

Developing and statute drafting in the Government

The ministries implement the Government Programme, draft acts and other statutes, and promote reforms through different kinds of projects, working groups and bodies. Information on all this is available on the Government website.

All ministries' projects are available on the Government website valtioneuvosto.fi/en/projects

Parliamentary working group for municipalities' future

Basic information In progress

Project status

Preliminary drafting

Regulatory drafting

Consultation procedure

Continued drafting

Government decision-making process

Consideration by Parliament

Bill approval

Suspended

Completed

Goals and results

Starting points

Effects and benefits

Situation description

Persons

Developing and statute drafting in the Government