Finland’s public debt set to near 100% of GDP by 2030, finance minister warns
Tuesday 26th May 2026 on 16:45 in
Finland
Finland’s public debt will climb to nearly 100% of gross domestic product by the end of the decade, finance minister Riikka Purra (Finns Party) told parliament Tuesday during a debate on the government’s report on correcting excessive deficits.
While recent economic forecasts for this year show “promising” growth, Purra acknowledged the long-term debt trajectory remains dire. She cited rising private consumption, record industrial output, and an expected decline in long-term unemployment as signs of recovery but stressed that fiscal discipline is critical.
Purra accused the opposition Social Democrats of undermining growth by proposing annual tax hikes totaling billions. “These tax increases would kill any chance of economic expansion in Finland,” she said.
The opposition countered that the government’s policies—particularly a corporate tax cut—have deepened the fiscal crisis. Social Democrat MP Riitta Kaarisalo called the situation a “bleak morning-after gift” for the next government, which will face a €2.7 billion adjustment in its first budget to meet EU deficit rules.
Center Party MP Mika Lintilä demanded the reversal of the corporate tax cut, arguing the government is shifting responsibility while seeking a €65 billion increase in the debt ceiling. “They talk about braking debt but have their foot on the gas,” he said.
Left Alliance MP Hanna Sarkkinen dismissed the report as ideologically skewed, noting it omitted the €1 billion annual revenue loss from the corporate tax reduction. Green MP Mari Holopainen warned that eroding social security has weakened domestic demand, while National Coalition Party deputy Ville Valkonen defended the government, insisting its €6.5 billion in austerity measures had slowed debt accumulation.
The debate followed the government’s submission of its deficit correction plan to parliament, with opposition parties accusing the ruling coalition of deferring painful adjustments until after the next election.