Finland Times

 

The report jointly prepared by former Swedish Minister of Finance Anders Borg and Director General of VATT Institute for Economic Research Juhana Vartiainen submitted to the Prime Minister Alexander Stubb on Wednesday. Photo Lehtikuva.

The country can overcome the ongoing economic difficulties by restoring competitiveness, increasing the supply of labour and improving labour productivity, according to a high profile report released on Wednesday.

 

The report jointly prepared by former Swedish Minister of Finance Anders Borg and Director General of VATT Institute for Economic Research Juhana Vartiainen, and submitted to the Prime Minister Alexander Stubb said that growth of labour costs in Finland should take many more years than in competitor countries. 

 

It is also necessary to free work-related immigration, terminate the "unemployment pathway to retirement" of those born after 1965 and improve entrepreneurial atmosphere in Finland, said a government press release quoting the report.

 

The writers of the report say that social partners need to develop the culture and institutions of local wage negotiations to be carried out within the framework of collective agreements. 

 

The current job alternation system should also be terminated and the resources freed up and reallocated for the improvement of older people's mobility in the labour market.

 

The report is based on an analysis ordered in October 2014 from Anders Borg on objectives and measures for outlining our economic policy during the next term of government. Juhana Vartiainen was asked by Borg to co-write the report. 

 

Prime Minister Stubb considers it necessary to implement the measures suggested.

 

"We cannot escape from the weak outlook of our public economy.  Bold structural reforms must continue, precisely as Borg and Vartiainen suggest. The proposals of the report must be taken seriously, especially for the purpose of improving employment", Prime Minister Stubb says.