The objective set forth in the government programme is to generate savings of a total of four billion euros in public finances during the ongoing electoral term.
Public finances include not only to government finances but also to the finances of local governments and social funds.
Roughly 1.4 billion euros of the cost-saving measures are to be implemented next year, according to the draft budget. The measures are therefore front-loaded.
“It's our aim to front-load the cuts, especially the difficult decisions, because their corollary impact on growth and employment will thereby take place sooner,” explained [Minister of Finance Alexander] Stubb.Our bold in the above. So, what caused the drastic measures?
“The economic situation is difficult, the employment situation is weak and our total output has diminished for three consecutive years. Our external balance is again showing a deficit, as is our public economy. I hope from the bottom of my heart that I don't have to repeat these lines here next year.”