The programmes are based on decisions made by the Government, including the decisions agreed in the March 2013 spending limits discussion.
Finland’s GDP is projected to grow by 0.4 per cent in 2013. In the medium term, GDP growth is projected to remain subdued. Finland’s general government finances, which had long been in surplus, deteriorated sharply into deficit as a consequence of the recession in 2009. In 2012 the general government deficit was 1.9 per cent of GDP. In the medium term, the general government financial position will strengthen, however, and the general government debt to GDP ratio will begin to fall.
At the same time, population ageing will adversely affect conditions for economic growth, increase central government age-related expenditure, and inevitably weaken the general government financial position. The long-term sustainability gap in public finances is estimated to be 4.2 per cent of GDP. The Stability Programme sets a medium-term objective of -0.5 per cent of GDP for the general government structural balance. The objective is in line with both the Stability and Growth Pact and the national legislation required by the Fiscal Compact between Member States, which came into force at the beginning of 2013. The general government structural balance will remain stronger than the medium-term objective during the programme period.
The national targets set by Finland for 2020 exceed the headline targets agreed at the EU level. Finland aims to raise the employment rate of 20–64 year-olds to 78 per cent. The target level of research and development expenditure is 4 per cent of GDP. With respect to those who have completed tertiary-level education, the goal is that 42 per cent of 30–34 year-olds will have a qualification. The aim is to reduce the proportion of early school leavers to 8 per cent. A further objective is to reduce the number of people living at risk of poverty and social exclusion by 150,000. The energy and climate targets set by the EU will be achieved.
In 2012, the European Council gave Finland five recommendations, which should be taken in account in national decision-making. In 2012 and 2013, Finland was urged to ensure the long-term sustainability of public finances, improve the productivity of public services, lower unemployment and raise the statutory retirement age, increase competition and diversify the business structure, and align wage and productivity developments.
Finland stability programme 2013
Europe 2020 Strategy – Finland’s National Programme
© Finnish Government
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