STTK advocates for tax adjustments to support Finnish purchasing power

The Central Organization of Finnish Trade Unions (STTK) has commented on Finland's economic trajectory and proposed tax policy directions. While data indicates the economy has seen growth of nearly one percent in 2024 and 2025, STTK economist Tom-Henrik Sirviö notes that employment has continued to weaken and public services face challenges due to significant cuts.

STTK has criticized a report by the Etla Economic Research institute, arguing that its conclusions regarding economic adjustment through spending cuts rather than tax increases are based on one-sided research. The organization maintains that the public sector can no longer sustain deep cuts.

Regarding tax policy, STTK advocates for moderate tax solutions that protect the welfare state's tax base while supporting household purchasing power. They support index adjustments for income tax scales for low- and middle-income earners to prevent taxation from tightening due to inflation. Additionally, STTK recommends increasing earned income deductions to strengthen work incentives and support those most affected by the cost-of-living crisis.