THE ACTIVATION MODEL for unemployment security will be abolished regardless of the findings of a study of its employment impacts to be released in October by VATT Institute for Economic Research, states Aino-Kaisa Pekonen (Left Alliance), the Minister of Social Affairs and Health.
“Preparations to abolish the activation model are underway. I personally think it’s realistic to do away with the activation model at the start of next year” she stated on YLE Aamu-TV on Monday.
The issue appears to have caused some friction within the five-party ruling coalition. Mika Lintilä (Centre), the Minister of Finance, estimated earlier this month that the government should postpone abolishing the model until examining the upcoming findings.
“I don't think we have to wait for the possible figures from VATT in October,” she said to the public broadcasting company. “We’ve already started work [to abolish the model]. We’ll look into the report and what it says in October. But up until now, we haven’t had access to any figures showing the activation model has contributed to the rising employment rate.”
The Finnish government, she clarified, will follow through with the abolition even if it is presented with evidence of the model’s positive employment impact.
The government programme states that the activation model will be dissolved as soon as the ruling parties have agreed on measures with a comparable impact on the employment situation.
Pekonen reminded that the compromise found by the ruling parties during the coalition formation process is challenging because abolishing the model falls within the purview of the Ministry of Social Affairs and Health and identifying measures to replace it within that of the Ministry of Employment.
Timo Harakka (SDP), the Minister of Employment, stated at the start of this month that the government will not wait for estimates of the model’s employment impact.
Aleksi Teivainen – HT
Source: Uusi Suomi