Päijät-Häme expects more time to cover €90.2 million deficit

Päijät-Häme wellbeing services county expects to avoid an assessment procedure and receive more time to cover its deficit, Yle reports. County director Petri Virolainen said negotiations with the Ministry of Finance had ended and that the memorandum had already been approved verbally.

The county has accumulated a deficit of 90.2 million euros and has applied for an extension to cover it by the end of 2029.

Virolainen said he believed the county had a good chance of receiving the extension. The county began a preliminary financial oversight process with the Ministry of Finance at the end of August.

The county’s first application was rejected, so it submitted more detailed plans. According to Virolainen, the negotiations focused on how realistic the plans were for balancing the finances and safeguarding services. He said the risks were also reviewed together and that the negotiations were conducted in a constructive atmosphere.

If the county were placed in an assessment procedure, it would lose a large part of its decision-making power. The ministry would then make decisions on its behalf.

The county announced on Monday that it would begin employee consultation negotiations affecting up to 179 jobs. The first negotiations could take place later this year and are part of the savings measures.

Virolainen said the memorandum still required formal approval from both sides, despite having been approved verbally. The county board is expected to decide on the new application by the end of the month, after which the county council will consider it. The Ministry of Finance will make the final decision on whether to grant the extension.