A new report from the parliamentary debt brake working group was presented at a press conference in the Little Parliament of Finland. Except for the Left Alliance party, all parliamentary parties reached an agreement last week on a debt brake, which outlines measures to reduce the public deficit in the coming years. The report's key points were discussed by the working group's chair, Ville Valkonen, a member of the National Coalition Party, highlighting the economic challenges ahead for Finland.

The working group agreed on an average deficit target of around 3 percent concerning the gross domestic product from 2027 to 2033. A preliminary target set for the current electoral term aims for a deficit of 2-2.5 percent of GDP by the year 2031. This adjustment requires a significant financial restructuring amounting to approximately 8 to 11 billion euros needed by 2031, according to preliminary calculations based on the Ministry of Finance's winter 2025 forecast.

These calculations are subject to uncertainties and will be updated repeatedly leading up to the set deadline. Stakeholders will have to remain vigilant as the political landscape and economic predictions evolve, which could impact the final targets. This report underscores the economic austerity measures Finland may need to adopt to stabilize its public finances, eliciting reactions from various political sectors as they navigate these crucial fiscal challenges.