Finland’s National Coalition Party (Kokoomus) has proposed €9 billion in public spending reductions for the next parliamentary term, with the largest savings aimed at healthcare and pensions. The party says €1 billion of the total would fund selected investments and reforms, leaving a net fiscal adjustment of €8 billion.
Prime Minister and party leader Petteri Orpo presented the programme on Wednesday with members of the party leadership.
Kokoomus described the package as its debt-brake programme ahead of Finland’s next parliamentary election.
The party plans to deliver the adjustment through spending cuts rather than tax increases.
“Finland’s problem is not taxes that are too low, but spending that is too high,” Orpo said at the press conference.
The programme allocates €2 billion in savings to social and healthcare services and another €2 billion to the pension system. It also targets €1.5 billion from index-linked spending, €700 million from state administration, €500 million from social security, €600 million from business subsidies and €1.7 billion from other expenditure.
Kokoomus has not set out all measures needed to secure the pension savings. The party wants employers, employees and the state to negotiate changes through Finland’s tripartite system.
Orpo said the party does not seek cuts to pensions already being paid. He raised pension accrual during periods of unemployment and study as areas for examination. Vice-chair Karoliina Partanen said longer working lives should form part of pension reform.
The proposed healthcare savings include changes to the funding model for wellbeing services counties, limits on treatments judged to provide little health benefit and measures aimed at reducing administrative costs.
Kokoomus also wants to reduce the number of wellbeing services counties from 21 towards a 5+1 structure. Party secretary Maggie Keskinen said the party also supports voluntary municipal mergers and tighter rules for municipalities facing financial problems.
The social security package includes plans to shorten earnings-related unemployment benefit to 300 days, with the possibility of shifting more support towards the start of an unemployment period. The party also proposes restrictions on housing support and new conditions for some benefits received by immigrants.
Other proposed cuts include €300 million from development cooperation and €300 million from transport network spending. State grants to organisations, municipalities and wellbeing services counties would fall by €200 million.
Kokoomus also proposes a €120 million reduction in funding for public broadcaster Yle.
The party plans to redirect €150 million in public research, development and innovation spending towards defence-related purposes. It also proposes charges for a second higher education degree, savings in the prison system and the abolition of Parliament’s annual discretionary “Christmas money” allocations.
Defence spending would remain outside the planned index restraints. Orpo said security and defence were areas where the party would not reduce commitments.
Kokoomus has also ruled out tax increases in the programme. Orpo later clarified that his statement about not taking money from people’s wallets referred to taxation rather than reductions in benefits.
Under Finland’s cross-party debt-brake agreement, the adjustment requirement for the next parliamentary term is expected to reach about €8 billion to €11 billion. Kokoomus parliamentary group leader Jukka Kopra said other parties should now publish their own plans before the election.
HT
