FINLAND is likely to trigger the excessive deficit procedure of the European Union in 2024, views Minister of Finance Riikka Purra (PS).
“Finland is exceeding the limits for debt and deficit under both the old and new rules. The [budget] deficit will exceed the threshold rate of three per cent more clearly than expected in the autumn and will stubbornly stay on the uglier side of three per cent,” she was quoted saying by YLE on Wednesday.
The excessive deficit procedure can be triggered by a member state with a budget deficit exceeding three per cent or a debt burden exceeding 60 per cent of gross domestic product.
Purra spoke to reporters after sitting down with her colleagues from other parts of the EU on Wednesday.
The finance ministers agreed to amend the rules on central government debt and to uphold the excessive deficit procedure, according to the public broadcasting company. Purra revealed that the last unanswered questions in the negotiations were related specifically to the procedure and safeguard clause.
“The compromise agreement states that there’ll be no changes to the demands for adjustment in the public economy concerning the deficits of member states, but that it’ll be possible to get a temporary exemption from them in the early phases,” she explained according to YLE. “The new debt safeguard clause will be very exacting for Finland. We didn’t manage to agree on a longer timeline for the adjustment.”
She added that she is nonetheless satisfied with the compromise both in her capacity as minister and chairperson of the Finns Party. The objective of the new rules, she outlined, is to encourage responsible financial management across the EU.
“Finland’s goal has been to ensure the rules are demanding but implementable. This was realised as far as we’re concerned,” said Purra.
Aleksi Teivainen – HT
