Jyrki Katainen (cons), the Finnish finance minister, said on Monday that he was extremely disappointed that talks over what had been coined a framework incomes deal had failed.

Speaking during a budget debate in Parliament, Mr Katainen added that he hoped that the talks could be relaunched at some stage.

The minister underscored that he had not planned to propose a cut in the corporation tax rate in an effort to make a framework deal more palatable for the employer camp.

"I proposed as a chaser whether at least the most significant political groups could come up with a commitment to refrain from raising income taxes during this and the next legislative period," he said.

"This is the only tax solution I have wanted to introduce."

Mr Katainen said that opponents of a framework pay agreement could be found on both sides of the labour market divide.

STT