Finland's Finance minister Petteri Orpo has answered a letter from the European Commission sent to reproach Finland for failing to hit budgetary goals and recommendations. The commission wanted to know in particular how Finland planned to reduce the structural deficit in the state budget given continued slow economic growth.
Along with Finland Belgium, Cyprus, Italy, Lithuania, Portugal and Spain received similar letters.
Orpo said yesterday that Finland's situation is stable, and not yet over-indebted. On Thursday he sent his official response to the Commission, which stated that Finland is committed to abiding by the Commission's budgetary rules.
According to Orpo that commitment is underlined by the structural reforms planned by the government, which will help spur economic growth and reduce public spending. He specifically mentioned the so-called competitiveness pact, which will cut real wages across the workforce and thereby, hopes the government, create some 40,000 jobs.
Orpo also cited the planned reform of health and social care, which is expected to secure big savings in future years.