Finland’s National Coalition Party (Kokoomus) has proposed a €9 billion public spending cut programme for the next parliamentary term, with the largest reductions focused on healthcare, pensions and state expenditure. The party says €1 billion of the package would be redirected into selected investments and reforms, resulting in a net fiscal adjustment of €8 billion.
Prime Minister and Kokoomus leader Petteri Orpo presented the proposal on Wednesday alongside members of the party leadership, describing it as the party’s debt-brake programme ahead of Finland’s next parliamentary election. The plan is based on reducing public spending rather than increasing taxes.
“Finland’s problem is not taxes that are too low, but spending that is too high,” Orpo said during the press conference.
The proposed savings are spread across several areas of government spending. Kokoomus has allocated €2 billion in reductions from social and healthcare services and another €2 billion from the pension system. The programme also includes €1.5 billion in savings from index-linked spending, €700 million from state administration, €500 million from social security, €600 million from business subsidies and €1.7 billion from other areas of expenditure.
The party has not yet detailed every measure required to achieve the planned pension savings. Instead, it wants employers, employees and the state to discuss possible changes through Finland’s established tripartite negotiation system.
Orpo said the party does not intend to cut pensions that are already being paid. However, he identified pension accrual during periods of unemployment and studies as possible areas for review. Kokoomus vice-chair Karoliina Partanen said extending working lives should also be considered as part of future pension reform.
Healthcare is another major focus of the proposal. Kokoomus wants to change the funding model for Finland’s wellbeing services counties, limit treatments it considers to have limited health benefits and reduce administrative costs within the system.
The party also supports reducing the number of wellbeing services counties from the current 21 towards a proposed 5+1 structure. Kokoomus party secretary Maggie Keskinen said the party would support voluntary municipal mergers and stricter financial rules for municipalities experiencing economic difficulties.
The social security proposals include shortening earnings-related unemployment benefits to 300 days, while potentially providing stronger support at the beginning of an unemployment period. The party also proposes changes to housing support and new conditions for some benefits received by immigrants.
Additional savings would come from several other public spending areas. Kokoomus plans to reduce development cooperation funding by €300 million and transport network spending by €300 million. State grants for organisations, municipalities and wellbeing services counties would also be reduced by €200 million.
The proposal includes a €120 million cut to funding for Finland’s public broadcaster Yle. The party also wants to redirect €150 million in public research, development and innovation funding towards defence-related purposes. Other measures include introducing charges for a second higher education degree, reducing prison system costs and ending Parliament’s annual discretionary “Christmas money” allocations.
Defence spending would be excluded from the planned index restraints. Orpo said security and defence commitments would remain protected under the programme.
Kokoomus has also ruled out tax increases as part of the proposal. Orpo later clarified that his comment about not taking money from people’s wallets referred specifically to taxation, rather than reductions in public benefits.
The spending plan comes as Finland’s political parties prepare for the next parliamentary election and debate how to address the country’s rising debt levels. Under Finland’s cross-party debt-brake agreement, the required fiscal adjustment for the next parliamentary term is expected to be between €8 billion and €11 billion.
Kokoomus parliamentary group leader Jukka Kopra said other political parties should now present their own proposals for addressing Finland’s financial challenges before the election.
