Finland’s Stability Programme : April 2020

The coronavirus pandemic has resulted in a serious disruption to the global economy. The Government has stated that Finland is in a state of emergency. The exceptional circumstances referred to in the EU’s Stability and Growth Pact also apply. Economic forecasts are now subject to exceptionally high uncertainty, which is also reflected in the assessment of the outlook for general government finances. It has been agreed between the Commission and the Member States that the Stability Programme required by law to be submitted by the end of April will be more concise in content than normal. The Stability Programme does not set out the Government’s targets or measures planned to achieve the targets. Due to the technical nature of the Stability Programme, it is published as a Ministry of Finance civil service document that has not been considered by the Government.

Finland is seeking to apply the general escape clause of the Stability and Growth Pact with regard to fiscal policy measures aimed at addressing the coronavirus outbreak. These measures have been implemented in the first and second supplementary budgets, adopted in March-April. The Government will be preparing next support measures in May. Even after this, the need for further measures cannot be excluded.