Government awaits response from six welfare areas on discussions in Finland

The government is awaiting a response from six struggling welfare areas regarding an invitation to discussions. Municipal and Regional Affairs Minister Anna-Kaisa Ikonen announced at the end of September that more detailed talks will be held with Lapland, Central Finland, Vantaa and Kerava, East Uusimaa, Kanta-Häme, and Satakunta. Anna-Liisa Pasanen, a senior specialist at the Ministry of Finance, stated that preliminary opinions regarding the willingness to engage in discussions are expected by October 15.

“These discussions are voluntary and will be shaped according to the proposals from the regions,” Pasanen explained. She added that the regions are encouraged to raise topics for which they seek support. The discussions will also involve the Ministry of Social Affairs and Health and the Finnish Institute for Health and Welfare, with these ministries conducting their own analyses of the regions’ finances and operations to assist in the talks.

The initial discussions are scheduled to take place in November and December, followed by plans for more detailed conversations with each region to be held between January and March 2025.

An evaluation process is a separate procedure. If the situation in the regions does not improve, they may enter an evaluation process. The initiation of support discussions does not imply the start of this evaluation procedure. Starting an evaluation is based on discretion and can commence once legal criteria are met, including changes in borrowing authority granted to the region.

So far, eight welfare areas have submitted applications for changes to their borrowing authority for 2025. These applications will be reviewed in the remaining months of the year, but decisions regarding the necessity of an evaluation process are unlikely to be made before year-end.