Public finance concerns Even though the state of Finnish public finances is better than in many other European countries, there has been a clear deterioration. General government deficit has increased considerably. The debt level looks likely to exceed the 60% level soon, perhaps next year, unless new consolidation measures are imposed.
As the problems in the economy can be seen as being largely structural by nature and not only cyclical, the government deficit cannot be expected to be corrected by a recovery in the international economy. At the same time, the effect of population ageing on the economy has begun to show. The size of the working-age population has started to diminish.