Economic Policy Council’s Background Report: Previous estimates for productivity growth in Finland have been too optimistic
A recent background report from the Finnish Economic Policy Council shows that forecasts of Finland’s economic growth prospects have been over-optimistic, especially in times of crisis. Forecasts for Finland’s key trading partners, Sweden and Germany, have exhibited much smaller forecasting errors. Finland is committed to the European Union’s common fiscal rules, which are expressed in […]
Economic Policy Council: Next government needs a credible plan for fiscal adjustment and combating climate change
The Covid-19 pandemic and the current crisis have demonstrated that the government’s ability to support the economy is crucial. Given the persistent deficit in public finances, the new government term should start with a credible fiscal adjustment plan. The tightening of EU-wide climate policy will also affect Finland. The war on Ukraine created an energy […]
Economic Policy Council publishes annual report and holds a seminar Wed 1.2.
Economic Policy Council will publish its annual report on the economic policy of the government and fiscal sustainability on February 1, 2023. An open seminar will be held for anyone interested in the report and themes such as green transition. Economic Policy Council will publish its annual report on the economic policy of the government […]
Finnish Economic Policy Council background report: Lump-sum transfers are the most effective way to address unequal fuel tax burdens to low-income households
According to a background report for the Finnish Economic Policy Council, lump-sum transfers are better at improving the equity of fuel taxation compared to reductions in income or fuel taxes. Tax reductions would disproportionately benefit high-income households. Furthermore, reductions in fuel taxes could create harmful incentives to increase driving. Excise taxes on fuels are the […]
Uncertain times require responsive and credible fiscal policy
Government support expedited the economic recovery in 2021. The chosen supportive fiscal stance for 2022 is appropriate given worsened economic outlook. To preserve sustainability a plan about consolidating public finances should be devised without delays. Increases in expenditure undermine future fiscal space The current crisis demonstrated that the government’s ability to support the economy is […]