Finland Times

Niinistö, also the environment minister of the six-party alliance government, termed the cut as unfair and expressed solidarity with the sentiments of Nobel laureate economist Paul Krugman, who also termed the budget as dangerous.

In an interview on Friday with Finnish language online newspaper Uusi Suomi in Stockholm, Krugman said Finland has embarked on very tight policies without any kind of pressure.

According to Niinistö, what the Nobel laureate said was thoughtful logical talks.

The minister also said controversy was raised over the government policy of expenditure cut from the elderly care services.

Niinistö argued that if the fragile economic situation worsened, the saving action would not able overcome the crisis.

He said Finland's credit rating was essential to ensure credibility and that the structural measures meet sustainable economic growth, employment and productivity.

Earlier, the six-party alliance government announced a tight budget proposal for next fiscal, aiming to adjust an amount of EUR 600 million and cut expenditure to face the ongoing economic crisis.