Vake faces financial challenges amid welfare region reform in Finland

The second year of Finland’s welfare region reform has begun against a backdrop of financial difficulties, with all regions currently operating at a deficit. The Vantaa and Kerava welfare area, also known as Vake, has reported a projected shortfall of 100 million euros, exacerbated by a budget from the state that failed to account adequately for local challenges.

Last year, Vake was the first such region to request additional state funding, amounting to 148 million euros for this year and the next. However, this request was denied in September, as a working group from the ministries of finance, social affairs, and interior suggested that the current budget should suffice.

Now, Vake has been added to a list for special guidance from the ministries, along with East Uusimaa, Kanta-Häme, Satakunta, Central Finland, and Lapland. Discussions are underway about improving the financial situation in these areas.

According to Vake’s assessment, the budgetary funding model does not adequately recognize the particular challenges it faces, especially in social services. Almost 25 percent of Vake’s residents are from language minorities, complicating communication and increasing the need for support services.

Vake’s director, Timo Aronkydö, criticized the lack of justification for the denial of additional funds, feeling the region has become a cautionary example to others. In the meantime, essential services are being maintained through short-term loans, while some home care services are being reduced.

The finance ministry has acknowledged that the funding model, partially based on social statistics, is perceived as unfair, though the working group maintained that it does not discriminate against Vake. Moving forward, the integration of welfare regions may be considered if financial conditions do not improve.