Скачать или смотреть Finland's Finance Minister Annika Saarikko warns of annual €10bn national deficit

Subscribe here: https://bit.ly/eudebates Finland had a national debt of about 144 billion at the end of January, which Finance Minister Annika Saarikko (Cen) says is the responsibility of all political parties.

Finland's next government may need to borrow at least 10 billion euros per year over its administrative term to cover state expenditure, according to figures contained in a Ministry of Finance report to be published next week.

With inflation and interest rates rising rapidly, the situation is serious and deteriorating fast, Finance Minister Annika Saarikko (Cen) told Yle's breakfast show on Friday morning.

"The figures mean that the next government will have to borrow more than ten billion every year. This figure is at the lower level and does not take into account any unforeseen crisis that would lead to further increased spending," Saarikko said.

She added that a large proportion of this amount will be required to service the interest payments on the current level of state debt.

"Another area of expenditure that is rapidly increasing is those indices that are so-called automatically rising expenditures, such as welfare, pensions and education. They have also increased the need for borrowing," the minister said.

"All parties are responsible"
Finland had a state debt of about 144 billion at the end of January, which Saarikko told Yle is the responsibility of all political parties.

"It is a good thing that people in Finland seem to be widely concerned about state debt. This is an important basis on which us policymakers can in the years to come tackle this situation," Saarikko said, adding that she also holds previous governments responsible for the level of debt.

"This trend has been going on in Finland for 15 years," Saarikko noted.

The minister's reference to 15 years suggests she was thinking back to the time of the coalition government led first by Matti Vanhanen (Cen) and then Jyrki Katainen (NCP).

In terms of the current government's responsibility for the growing level of debt, Saarikko noted that the administration of which she has been Finance Minister since 2020 has faced exceptional challenges during its term in office.

"The clear policy decisions of the current government, beyond the Covid pandemic and the effects of Russia's war of aggression, account for about 2.5 billion euros of the debt," Saarikko said.

The government survived a motion of no confidence earlier on Friday, which had been called by opposition parties over the government's handling of the economy and the increase in state debt.

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