The European commission said in a statement on the status of public finances in 14 EU member states on Wednesday that it expected to Finland to breach the three-per cent budget deficit limit set out in the EU's stability and growth pact.

The commission sees Finland's general government deficit rising to 3.6 per cent this year and narrowing to three per cent in 2011, assuming favourable medium-term growth.

"The invitations to Finland refer to ensuring that the breach of the 3-per cent deficit reference value in 2010 would remain contained and temporary, and to defining a medium term fiscal strategy with a view to restoring the long-term sustainability of public finances," the statement added.

STT