The Finnish Government will continue to cut public spending and to implement EU neoliberal policies

The parliamentary elections in Finland, which took place in April, were an expression of protest against the policy of the bourgeois government and of the European Union. Following lengthy negotiations, the new government was formed in the end June with the participation of six parties.

The chairman of the Conservative Coalition Party Jyrki Katainen holds the post of Prime Minister and the central posts within the government are held by the Conservatives and Social Democrats. In addition, the Left Alliance, the Greens, the Swedish People’s Party and the Christian Democrats participate the government. The bourgeois parties have the majority. The Left Alliance and the Greens voted about the government program.

The only winner of the elections, the True Finns, refused to participate in the government in particular because the government is committed to support the EU policy and the Euro Plus package.

Cuts in public spending

The government program contains some minor improvements concerning income security for the unemployed and the poor, as well as with regard to youth employment and elderly services legislation. The Communist Party of Finland supports these reforms, in favour of which many organizations have struggled for a long time.

As a whole however, the government programme takes more away from the low- and middle-income earners than it offers them. The funding of municipalities for the management of social, health and other basic services, will be reduced by about 800 million (631 million from the State allowances and around 175 million from the share of corporate taxes ). Cuts in education funds will be reduced by 300 million. In addition, there will be cuts to renewable energy subsidies, agricultural subsidies, investments in transport and development funds. Spending cuts will also translate into loss of permanent jobs in the public sector.

The government program contains a commitment to cut public spending during the entire four-year legislature. If the public debt and deficit in terms of GDP does not decrease, the program foresees additional cuts.

Concentration of municipalities and services

The government intends to unite the majority of municipalities into larger entities. At the same time schools and other local basic services are being reduced. This involves the ”diversification” of the production of these services, in other words more competition and privatization.

Higher taxes

The government will slightly reduce taxation of the poorest and tighten a little capital income tax. At the same time, the program implies, however, increase of municipal taxes, real estate taxes and some indirect taxes, which targets the vast majority and most heavily the low-income households.

Market-based energy policy

Concerning energy taxation, the introduction of a windfall tax (although it is modest) is a positive factor. On the other hand, the energy tax for the industry is lowered as much as EU standards allow, and transport taxation is increased.

The government supports liberalization of EU energy markets. The permits for the construction of new nuclear power plants will not be re-evaluated (cf. Fukushima). The reduction of emissions responsible for climate change is tied to emissions trading.

Commitment to the EU neoliberal policies

The government parties are committed through this program to support the EU policy, including the Euro-Plus package. Thus the Finnish government is involved in implementing policies whereby workers and people are made to pay for the financial speculation and for the euro crisis through drastic reduction of public spending, weakening of employment conditions and social security, and through privatization.

The Government Programme also contains a commitment to the EU neo-liberal strategy 2020 and to support the IMF, the World Bank and WTO policies. Reference to promote at international or EU level the introduction of tax on financial transactions is merely a fig leaf.

Closer cooperation with NATO and participation in the war in Afghanistan

The government program means more close cooperation with NATO. The program supports also the development of EU common defence and of EU-NATO cooperation. Finnish troops will continue participation in the war in Afghanistan, and any new assessment of the situation is tied to the position of NATO partners.

Regarding NATO membership, it is stated that government ”maintains the option to apply for NATO membership”, but ”during the present legislature government will not prepare application for membership.” Defence expenditures will be slightly reduced, but the programme does not refer to the big arms purchases which had been decided earlier.

Preparing a change to the electoral law

The change in electoral law agreed upon by the previous government (including the 3% threshold and the ban on electoral alliances) will undergo a new preparation, which is based on the change of constituencies. On the positive side, efforts will be made to strengthen the rights of the indigenous Sami people. On the other hand, as far as some other pending issues are concerned (including the status of immigrant families, the abortion law) one can see the efforts of the right wing to tighten regulations.

Up-coming presidential and local elections 2012

Presidential elections will be held in Finland in January 2012. According to opinion polls, the strongest candidate is the ex-chairman of the Conservative party Sauli Niinistö. Nominations of candidates of polical parties are only just beginning. Municipal election will be held in October 2012.

CP of Finland