Finland's national debt is nearing a dangerous level according to top financial officials. The country's debt-to-GDP ratio now approaches 90 percent, a threshold that could trigger stricter EU requirements.
Finance Ministry chief Juha Majanen told Parliament's debt brake working group that even six billion euros in spending cuts and tax increases won't be enough for the next government. He warned that without substantial savings measures, public debt could exceed 90 percent of GDP in coming years.
By mid-year, Finland's debt ratio stood at approximately 88 percent. Crossing the 90 percent mark would bring tougher EU-mandated savings requirements than the country has faced before.
Current projections show EU rules will require Finland to implement at least six billion euros in net adjustments during the next electoral term starting in 2027. Majanen suggested Parliament's working group should aim for even larger savings to create a sufficient safety margin.
He declined to specify exactly how much the next government should save. But ministry forecasts indicate Finland will need roughly 12 billion euros in total adjustments over the next two electoral periods.
The parliamentary working group will preliminarily decide on savings targets for the next term in February, with final decisions expected by December next year.
Finland faces a difficult balancing act between necessary fiscal discipline and maintaining public services that citizens depend on. The coming decisions will shape the country's economic stability for years to come.