Finland Times

 

Social Democratic Party, Chairman and the Finance Minister Antti Rinne. Photo – Lehtikuva.

Finance Minister Antti Rinne while reflecting on the floundering export economy said he does not believe cuts and tax hikes can be continued anymore.

 

Rinne, also the deputy prime minister and the chief of Suomen Sosialidemokraattinen Puolue (Social Democratic Party of Finland-SDP), told the news agency STT that  cuts and tax increases are coming to an end. “That cannot be continued anymore.”

 

The minister said the introduction of the new approach should solve the basic problem of the Finnish economy. Still, it is an excessively narrow approach on the side of exports which should be able to expand, he pointed out.

 

Rinne said currently there are about 25 companies who account for 60 per cent of the export earnings which mainly accumulate in slow growth areas of the European Union.

 

A healthy EU economy is crucial for the country, as a depressed euro economy is reflected in cuts in the country, said Rinne.

 

In addition to outside challenges, there are two major problems the country has had to face – the paper industry and Nokia.

 

“Digitalisation has decreased the demand for printing paper. In practice, it means we have lost a huge number of jobs in the paper industry. And then there was the rise and fall of Nokia: Nokia created 60,000 jobs and they have now been lost. We have not yet found quick compensatory solution for these,” explained the finance minister.

 

The Ukraine crisis and Russian retaliatory sanctions have added more concerns to the Finnish economy.

 

According to Rinne, the slump of the Russian economy has been taken into account in forecasts along the away and that there is no intention of making major redress during the budget session.

 

“Sanctions mean more or less five per cent of exports to Russia which so far has been about 10 per cent of Finnish exports. If this continues for long, the total cut in exports is about 0.5 percentage points,” said Rinne.