HELSINKI: The European Commission has given Finland a passing grade for the government’s efforts boost economic growth and put the brakes on growing government debt. Issued Monday, the Commission’s assessment essentially means that Finland has avoided disciplinary measures over its elevated debt to GDP ratio.
Although Finland’s government debt is growing and will reach 64.7 percent of GDP this year in violation of EU guidelines, the European Commission ruled on Monday that Finland should be considered as having complied with the debt requirement set out for all EU member states.
The Commission had previously flagged Finnish government debt as exceeding the 60 percent of GDP limit laid out in the EU’s Stability and Growth Pact, which seeks to harmonise member states’ fiscal management. Finland first exceeded the threshold back in 2014.
In its country-specific recommendations on the Finnish economy, the Commission agreed to grant Finland the flexibility it requested in meeting the debt target based on a series of major structural reforms implemented to restore balance to public finances.
Although Finland’s government debt is growing and will reach 64.7 percent of GDP this year in violation of EU guidelines, the European Commission ruled on Monday that Finland should be considered as having complied with the debt requirement set out for all EU member states.
The Commission had previously flagged Finnish government debt as exceeding the 60 percent of GDP limit laid out in the EU’s Stability and Growth Pact, which seeks to harmonise member states’ fiscal management. Finland first exceeded the threshold back in 2014.
In its country-specific recommendations on the Finnish economy, the Commission agreed to grant Finland the flexibility it requested in meeting the debt target based on a series of major structural reforms implemented to restore balance to public finances.
