As loan amounts rose relative to the value of properties, the performance of the subprime mortgage sector as a whole became sensitive to even small declines in house prices, with the distressing results that we have seen since house price growth decelerated beginning in 2006.
The 2005 pension reform in Finland was designed to ease ageing pressures on the sustainability of the pension system and labour markets. The increasing old-age population together with the increasing demand for welfare and health services set also a pressure on the public economy.