Finland: Finance Minister favours mix of cuts and taxes

09 March 2013

Finnish Finance Minister Jutta Urpilainen said that she favours an even mix of spending cuts and higher taxes in order to balance out public finances.

Urpilainen called half savings and half tax increases a suitable recipe for dealing with state finances right now. "Then everyone would be taking part in the venture and the ability to pay could be taken into consideration. It's worthwhile holding to this policy when the government examines the budget framework", Urpilainen said.

The SDP leader, who also holds the finance portfolio, defended an avoidance of radical spending cuts. Her view is that large cuts debated a year ago would have also dampened economic growth. She pointed out that elsewhere massive state spending cuts have extended the recession and led to serious unemployment.

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