Finland budget plan slammed by SAK for neglecting unemployment

SAK chief economist Patrizio Lainà criticised the Finnish Ministry of Finance’s budget proposal, saying it failed to tackle the country’s unemployment problem, which now exceeds 10 %. He warned that long‑term unemployment has risen to levels last seen during the 1990s recession, with more than 40 % of job‑seekers classified as long‑term unemployed.

Lainà called for the budget to restore protective elements of the social‑security system, increase wage subsidies and invest in labour‑market training, while freezing municipal unemployment‑benefit fines. He also urged the government to reverse the recent corporate‑tax cut, arguing it is costly and ineffective and could further strain public finances as defence spending rises. According to Lainà, the current fiscal choices could add over €2 billion to debt, leaving the next government to shoulder the burden.