Three Finnish well-being regions face state oversight

South Karelia, South Ostrobothnia, and Kymenlaakso well-being regions will be placed under a state evaluation procedure, according to a proposal prepared by civil servants at the Ministry of Finance and presented to regional leaders in a video meeting on Friday, Yle reports.

The proposal, now on the minister’s desk, will be decided by Minister of Local Government and Ownership Steering Anna-Kaisa Ikonen (NCP) next Tuesday. The decision will then be communicated to the regions.

Under Finnish law, the evaluation procedure restricts a well-being region’s independent operations. It is triggered when financial criteria are met. An evaluation group—comprising representatives from the Ministry of Finance, Ministry of Social Affairs and Health, Ministry of the Interior, and the region itself—will draft proposals to restore financial health and secure services. The region’s council makes final decisions on these proposals.

If financial issues persist, the Ministry of Finance may appoint a regional restructuring investigator, potentially leading to a merger with another region.

Kymenlaakso’s well-being region director, Harri Hagman, was not surprised by the proposal, citing a cumulative deficit of €104.4 million over the past three years. He noted that Kymenlaakso is the only region without growing funding, posing a significant challenge. The evaluation group is expected to begin work in August or September, after the summer holidays.