Finland’s Smallest Municipality Threatened with Crisis List Inclusion

The Finnish municipality of Lestijärvi may end up on the list of crisis municipalities, as several criteria for a crisis municipality are met. This is part of an assessment procedure to determine whether the municipality can provide its residents with the services required by law.

Lestijärvi’s economic distress is severe, with three consecutive years of substantial losses and a cumulative deficit of 2.7 million euros. This deficit must be covered by the end of 2026. Furthermore, the municipality’s debt exceeds the average debt amount of municipalities. Last year, the debt amounted to 10.6 million euros, equivalent to about 15,500 euros per resident. As a result, the municipality is forced to lay off its entire staff over the next three winters.

Moreover, the number of inhabitants in Lestijärvi is decreasing. At the beginning of the year, it became the smallest municipality in mainland Finland, with just over 680 residents.