Feb 12 • 11:11 UTC 🇫🇮 Finland Yle Uutiset

The pace of municipal mergers accelerates after a period of silence – dozens of municipalities are still dropping off the map, says a municipal finance expert

Municipal mergers in Finland are expected to increase in the coming years as a municipal finance expert predicts that dozens of municipalities may disappear without government intervention.

After a period of inactivity concerning municipal mergers, Finland is poised for significant changes as a municipal finance expert, Eero Laesterä from FCG Finnish Consulting Group, anticipates that the next council term will witness a surge in municipal mergers. Currently, Finland has 308 municipalities, but this number is expected to shrink substantially unless the government provides alternative solutions. Laesterä highlights that municipalities have suffered greatly from the impacts of the social welfare and health care reform (sote), which has left many local entities fragile and in need of consolidation.

The article reflects on the historical context of municipal mergers in Finland, noting that while there have been few consolidations decided this decade, earlier years saw numerous mergers, particularly in regions such as South Ostrobothnia. Only a handful of municipalities, like Ähtäri, are currently exploring the possibility of mergers, underlining a shift in administrative dynamics. This reluctance to merge stands in contrast to previous decades where the pace of consolidations was much faster, indicating a potential stagnation that might be reversed as financial pressures mount.

Jurva, a small municipality that merged with Kurikka, has shown signs of resilience according to local officials, suggesting that communities might adapt better to such changes than previously thought. City councilor Jouni Vallin expresses confidence in Jurva's ability to thrive despite these challenges. The overall sentiment, as expressed by the expert and local leaders, suggests that urgent action is necessary to prevent further decline of municipalities across Finland, with the need for thoughtful and strategic solutions being paramount for the future of local governance in the country.

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