Finnish parliamentary groups have established a working group to implement the country's new debt brake mechanism. The committee will define Finland's fiscal adjustment needs and set seven-year budget targets.
Committee chair Ville Valkonen from the National Coalition Party confirmed the group begins work on November 4. Vice-chair Joona Räsänen represents the Social Democratic Party.
The working group must establish Finland's medium-term budgetary objective by the end of February. This target will guide government spending decisions through the next electoral period.
Valkonen told reporters the committee will also set a separate fiscal target for the next government term. That goal will be confirmed in December 2026 based on updated economic data.
The debt brake agreement requires future governments to incorporate these targets into their budget plans. Related legislation is expected to reach parliament in early November.
Valkonen declined to specify how the committee will formulate its targets. He noted all details remain on the working table, with the final output being a report containing concrete objectives.
The Left Alliance participates in the working group despite not committing to the debt brake framework. Valkonen welcomed their involvement for maintaining shared understanding of Finland's economic situation.
The committee operates without unanimity requirements. Valkonen emphasized members seek consensus on targets, not policy tools.
He acknowledged significant differences exist between parties regarding economic policy instruments. These include tax increases versus spending cuts and their respective weighting.
Räsänen similarly stressed the group focuses on targets rather than methods. He believes this approach supports democracy by clarifying objectives for voters.
Each party will present their preferred policy tools to voters before elections. Citizens can then make informed choices at the ballot box.
Räsänen expressed optimism about reaching agreement on targets. All parties have committed to European Union fiscal policy rules, which provide the framework.
Valkonen characterized the debt brake agreement as historic. He warned Finland's current debt growth pace poses a serious societal threat that requires collective action to curb.
The working group includes representatives from all parliamentary parties: Karoliina Partanen (National Coalition), Ville Vähämäki (Finns Party), Jani Mäkelä (Finns Party), Nasima Razmyar (Social Democrats), Markus Lohi (Centre Party), Anne Kalmari (Centre Party), Saara Hyrkkö (Green League), Hanna Sarkkinen (Left Alliance), Henrik Wickström (Swedish People's Party), Peter Östman (Christian Democrats), Harry Harkimo (Movement Now), and Timo Vornanen (Blue Reform).
This cross-party effort represents Finland's attempt to institutionalize fiscal discipline amid growing concern about public debt levels. The real test will come when future governments must implement unpopular measures to meet these targets.