The Finns Party’s €9 billion savings plan would reshape Finland’s public spending, with proposed cuts affecting immigrant benefits, pensions, healthcare, education, development aid and government administration during the next parliamentary term.
Party leader and Finance Minister Riikka Purra presented the programme on Thursday, arguing that Finland must rein in public spending to meet its debt targets without relying on broad tax increases for workers and businesses.
The proposal combines approximately €8.06 billion in direct spending cuts by 2031 with around €1 billion in additional tax revenue and other measures. It also includes plans to dissolve the Finnish Innovation Fund Sitra and reallocate approximately €1 billion in its assets.
The programme would bring significant changes to the structure of government, including the abolition of the Ministry of the Environment and several state agencies. Purra acknowledged that the proposed restructuring would lead to job losses in the public sector, identifying middle-management positions as potential targets. She also pointed to artificial intelligence and automation as tools for reducing administrative costs.
The party proposes cutting €1.3 billion from central government administration. Alongside the Ministry of the Environment, it wants to abolish the Finnish National Agency for Education and the Natural Resources Institute Finland, transferring selected responsibilities to other government bodies.
Finns Party Deputy Chairman Joakim Vigelius said changes involving government agencies would deliver €150 million in savings. The proposed abolition of the National Agency for Education would account for approximately €10 million.
Public broadcaster Yle would face €200 million in cuts, and its automatic funding increases would end. The party also proposes reducing parliamentary spending and political party subsidies, including ending public funding for party youth organisations.
Immigration and integration measures would be among the areas facing substantial reductions. The programme proposes cutting approximately €690 million from immigration and integration spending, ending Finland’s refugee quota and withdrawing municipal subsidies for integration services.
The party also wants to tighten foreign nationals’ access to social security. Under the proposal, eligibility for several benefits would require ten years of residence in Finland. The affected support would include housing allowances, child benefits, student support, parental benefits and unemployment assistance.
These measures would represent a significant change for foreign residents who rely on public benefits while establishing their lives in Finland. The proposal outlines the party’s policy ambitions, however, and should not be confused with changes already enacted into law.
Pensions would account for another €1.62 billion in projected fiscal adjustments. The Finns Party proposes restricting inflation-linked increases for pensions above €2,000 a month between 2028 and 2031.
Finns Party MP Miko Bergbom said the measure would not reduce existing pension payments in nominal terms. Pensioners receiving less than €2,000 a month would retain their full index adjustments under the proposal.
The programme would also reduce the projected growth in funding for Finland’s healthcare regions by €1 billion and cut municipal funding by €600 million. Social Affairs and Health Minister Wille Rydman said healthcare funding would continue to increase each year, although more slowly than previously projected.
Development cooperation would face a proposed €500 million reduction. Parliamentary group chairman Jani Mäkelä said assistance to Ukraine would be protected, as would provisions for emergency humanitarian relief.
Universities and universities of applied sciences would face approximately €340 million in funding adjustments. The party also proposes charging students €2,000 per semester if they pursue a second qualification at the same level. Research, development and business subsidies would face further cuts.
The savings programme includes several tax changes intended to increase state revenue. These include a 3% levy on banks’ net interest income, higher electricity taxes for data centres, taxes on added sugar and plastic bags, and restrictions on tax exemptions available to foundations.
Newspapers would also face a higher value-added tax rate, rising from 10% to 13.5%.
The proposals come as Finland’s parliamentary parties work within a broader agreement to pursue fiscal adjustments estimated at between €8 billion and €11 billion during the next parliamentary term. The Left Alliance opted out of that agreement.
Purra said the Finns Party would publish a separate economic policy programme in November. The proposals presented so far set out the party’s approach to reducing public expenditure, but their eventual impact will depend on the political negotiations and decisions that follow.
