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Home BUSINESSFinland meets EU debt, deficit limits: Stubb
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Fri, 15 Apr, 2016 12:02:14 AM
FTimes – STT Report, Apr 15
 
Finance Minister Alexander Stubb. File Photo – Lehtikuva.
The country’s public debt in 2015 did not exceed 60 per cent of its Gross Domestic Product (GDP), if cyclical factors are taken into consideration, said Finance Minister Alexander Stubb.
 
The finance minister made the statement in a letter to the European Commission on Thursday clarifying the country’s economic situation. The letter said the country has met the EU regulations on economic deficit and public debt.
 
“I would like to stress that the government remains fully committed to the adjustment targets which are set in the Government Programme,” Stubb wrote in the letter.
 
According to EU regulations, the public debt should not exceed 60 per cent of GDP. But, according to the Statistics Finland, the public debt in 2015 rose to 63.1 per cent of the GDP. 
 
The letter indicates that Stubb was worried about the country’s public debt and deficit at the beginning of March. The deficit is 3 per cent.
 
Stubb pointed out in the letter that based on Statistics Finland’s recent figures, the deficit in 2015 dropped to 2.7 per cent and the deficit which surpassed the threshold in 2014 thus remains temporary and exceptional.
 
Stubb also mentioned the social welfare and healthcare reform (sote), employment and entrepreneurship package as well as the pension reform as corrective policy measures.
 
The government expects competitiveness and public finances to improve through different routes. There are a lot of expectations, especially from the ongoing labour market organisation talks on the competitive agreement. The economy is expected to improve through moderate wage settlements, the new Finnish wage model and through local labour agreements, the finish minister said in the letter.
 
Furthermore, the government recently finalised the fiscal plan which included 400 million euros additional savings on the spending limits. The new savings targets the maintenance of basic infrastructure, development cooperation and social support.
 
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