Finland Times

 

Finance Minister Jutta Urpilainen and Prime Minister Jyrki Katainen after the meeting on spending limit at the House of Estates in Helsinki on Monday. Photo – Lehtikuva.

The government is facing difficulties to decide on the fiscal adjustment of spending limit to face the economic crisis, as the ongoing meeting among the ruling parties failed to reach an amicable solution on Monday.

 

The inconclusive meeting will continue on Tuesday, trying to reach a result regarding reasonable savings, debt management, fiscal adjustments and tax increases, meeting sources said.

 

“All things are on the table and nothing has been agreed,” Prime Minister Jyrki Katainen told reporters after the meeting, adding that Monday's negotiations faced difficulties.

 

Prime Minister Jyrki Katainen comments on output of the meeting in the evening. Photo – Str / Lehtikuva.

The premier admitted in the evening that ideological differences between parties had risen as negotiations proceeded.

 

Katainen reminded that the government already decided on 5 billion euro budget adjustment, but was still facing difficulties to find out saving targets.

 

The official spending limit talks began on Monday morning at the House of Estates in Helsinki. Later, party heads proceeded to the prime minister's official residence Kesäranta to continue the discussion.

 

The Finance Minister, Jutta Urpilainen, echoed the premier’s sentiments, referring to the talks as sticky.

 

“Discussions on making the savings are difficult,” Urpilainen said.

 

The minister added that the difficulty factor was increased when a decision had to be made on budget adjustment of more than 5 billion euros.

 

Urpilainen added that at the same time the government needed to decide on curbing debt, tax increases and spending cuts.

 

The finance minister reminded that next year's budget would still be overseen by the current government, and that part of the adjustment measures would continue during next year and perhaps even up to 2018. The minister said talks on measures to support employment growth would be held tomorrow.

 

Finance Minister Jutta Urpilainen. Photo – Str / Lehtikuva.

The discussion will resume this morning at 10:00am at the House of Estates.

 

On Sunday, the ruling and the opposition parties agreed on the implementation of a comprehensive reform of social welfare and healthcare services in the country, with the view to safeguard the provision of vital welfare services over the forthcoming decades.

 

Earlier on February 25, the government also held talks with the opposition parties, although the political dialogue between the ruling and opposition parties failed to reach any understanding on the government’s austerity plans for tackling economic crisis.

 

The parties from both tents felt that austerity was necessary to overcome the situation, but they failed to agree on the period of implementation.