The current Finnish Government has cut public sector costs and weakened labour rights to an unprecedented degree. These measures were supposed to create 100,000 jobs, but have instead resulted in a complete failure and the worst unemployment rate in Europe. Despite this, the Government is seeking to reduce spending by an additional €390 million in the government discussion on spending limits, with Finance Minister Riikka Purra recently saying (page in Finnish) that €200 million of this will be achieved through cuts from health and social services.
“Does the Government still believe that these cuts will genuinely reduce spending? What they will cause are unemployment, hopelessness and a reluctance to spend and make people afraid of no longer being able to access the health and social services that they need. In reality, all this will lead to more problems, more need for health and social services and more costs down the road. The Government has created a spiral of misery,” says Tehy President Millariikka Rytkönen.
Comprehensive security at risk
Tehy demands that the Government refrain from any further cuts from health and social services in its spring discussion on spending limits. This is vital not only for individual citizens, but also for the comprehensive security of Finland.
“Looking at what is going on in the world right now, it would be downright dangerous to weaken our health and social services any further. If these services continue to be squeezed, it will compromise our ability to respond to crises. The planned cuts therefore affects every one of us, both in terms of patient safety and comprehensive security,” says Millariikka Rytkönen.
Shared trust and faith in the welfare state is also an important resilience factor in the event of a crisis. The number of people at risk of poverty and social exclusion in Finland is set to exceed one million in the near future (page in Finnish).
“We have already been placed on the EU's watch list for social development because of increasing inequalities, meaning rising unemployment, poverty and homelessness. As a result, Finland is no longer a model country for equality. How united can a nation be in the event of a crisis when a major proportion of the population is at risk of poverty and social exclusion?” Rytkönen asks.
Tax cuts for the wealthy must be reversed
In its 2025 mid-term policy review session, the Government made decisions to ease the tax burden on the highest earners. A reduction in the corporate tax rate is also due to come into force at the start of
2027, which experts say is an inefficient and costly way of boosting investment and could, on the contrary, deepen the public sector budget deficit.
“The sizeable tax cuts for high-income earners must be reversed, as must the reduction in the corporate tax rate. It cannot be the case that only the poorest bear the burden of wrong political choices, the global situation and rising health and social services costs. All Finns must contribute to saving our welfare state, not just those who already have the least,” Rytkönen insists.
For years now, Tehy has been proposing taxing the investment income of the Finnish trade union movement. Tehy wants to contribute to covering the costs of our society.
Enquiries: Tehy President Millariikka Rytkönen, requests for interview through Special Advisor Mila Huovinen, tel. +358 40 054 0005, [email protected]