Forced to save money, the Finnish government is cutting old-age pensions, Helsingin Sanomat reports.
Riikka Purra, the country’s economy minister, said in an interview with the newspaper on Wednesday, 10 April:
“In my opinion, it is impossible to achieve the desired result [in saving money] without intervening in pensions.”
The finance minister said the government plans to present additional budget balancing measures worth about €3 billion, of which almost €2 billion will be cut from social programmes. In addition, the government may move to tighten VAT and other taxes. The final decision on these issues will be made next week during the budget hearings.
In February, Finnish Prime Minister Petteri Orpo emphasised the need for austerity measures to balance public finances. The government’s plans for labour market reforms have sparked numerous strikes by trade unions.
