The Finnish government must make “significant adjustments” to pensions and healthcare if it is to succeed in its goal of creating sustainable public finances, according to Finnish Business and Policy Forum (EVA) consultant, Jussi Pyykkönen.

In an article published on EVA’s website, Pyykkönen said that of the €6bn adjustment planned by Prime Minister, Petteri Orpo's, government, approximately €3bn has been implemented.

Pyykkönen argued that sustainable public finances require €13bn in adjustment measures. Therefore, the next government will have to make savings amounting to €10bn, unless additional decisions are made.

He proposed that pensions must be frozen for the rest of the government's term and then tied to the consumer price index in the future.

Furthermore, he said the retirement age must be raised by two years and pension accumulation for periods of unemployment and study should be abandoned. He also thinks that pension accumulation during periods of unemployment and study must be abandoned.

“With the savings proposals aimed at pensions, it would be possible to achieve public finance savings of over €3bn during the election period. In the long term, the measures will reduce the sustainability deficit by up to €7bn in total,” he wrote.

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