Finland’s Future Government Coalition: Program, Reforms, and Unprecedented Cuts in Social Benefits

2023-06-16 22:25:02

Negotiations began on May 2 at the States Palace (Säätytalo), a historic building in downtown Helsinki. Punctuated by multiple blows, on the verge of derailing several times, they lasted seventy-five days – four less than the record set in 1951.

Friday June 16, Petteri Orpo, the leader of the National Coalition Party (conservative), who came out on top in the legislative elections of April 2, was finally able to present the program of his future government coalition, including the True Finns (extreme right) , the Swedish People’s Party of Finland and the Christian-Democrat movement.

During the press conference during which the leaders of the four parties presented the main orientations of the program, Mr. Orpo did not hide his satisfaction: following four years of a centre-left government, led by the social- Democrat Sanna Marin, he announced a full right turn. According to observers of Finnish political life, the new government should be the most conservative the country has known since the Second World War.

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“Finland and Finns need a change. Our welfare state is in danger”, said Petteri Orpo, to justify the return to austerity. During the election campaign, he pledged to cut the state budget by 6 billion euros over four years, saying that the greatest danger threatening his country was “debt crisis” – it stands at 74% of gross domestic product. “We cannot continue to go into debt year following year”he hammered, announcing reforms, some of which “will hurt”.

Unprecedented cuts in social benefits

The program plans to cut expenditure by 4.2 billion euros by 2027, while increasing revenue by 1.85 billion, thanks in particular to the creation of more than 80,000 jobs. To achieve this, the coalition is counting on unprecedented cuts in social benefits. “It must pay more to work”, Mr. Orpo insisted. Thus, the conditions for obtaining unemployment benefit will be tightened, a waiting day will be introduced at the start of sick leave and access to housing benefit will be limited.

In addition, the right to strike will be restricted and a fine introduced for unauthorized work stoppages. The coalition also plans to facilitate dismissals and the use of fixed-term contracts. At the same time, it promises to invest in education and skills. If employers applaud, praising the reforms they had “requested for decades”most unions denounce “an attack on employees”.

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