Finland Times

 

File picture of Prime Minister Jyrki Katainen.Photo – Lehtikuva.

Prime Minister Jyrki Katainen on Friday said the country’s economic situation was still going through a gloomy situation and it would be wise to take reasonable adjustment measures to cut expenditure.

 

Replying to the earlier remarks by the finance minister regarding austerity measures, the prime minister in a statement upheld the government’s saving measures.

 

Finance Minister Jutta Urpilainen on Thursday said the government plan to cut spending would put tremendous pressure on economic growth and employment.

 

The premier, however, said measures like tax increment and cuts in spending should be evaluated and their impacts assessed on economic growth and employment, adding that this was the right time to have a public debate on the nation's economic policy.

 

File picture of Prime Minister Jyrki Katainen and Finance Minister Jutta Urpilainen. Photo – Lehtikuva.

Katainen said the goal was to find a balance that allows for a credible economic policy, debt and economic growth.

 

Urpilainen, also chief of the Suomen Sosialidemokraattinen Puolue (social democratic party), the second largest component of the six-party ruling alliance, had called for a sensible timetable regarding the government plans to save 3 billion euros by implement tax increment and cuts in spending.

 

“The three billion budget readjustment by next year is not a wise and prudent financial policy,” said Urpilainen.

 

The minister stressed that the government needed to review its economic policy, and pointed out that it needed to adjust its timetable to meet the proposed savings target and reduce the debt ratio. 

 

In an interview with the YLE TV, he said more time was needed in order to get out of the debt fold.

 

The Finance Minister also spoke on the same issue after attending a seminar in Säätytalo organised as part of the government‘s preparation for the March spending limits.