Reducing taxes, enhancing export and paying the governmental debt

Finland is a small country with a relatively high standard of living. According to a new report, that is largely paid by the efforts of export industry.  

The report points out that "contribution of the export industry to the Finnish national economy is approximately 47 per cent of the value added and approximately 42 per cent of the employed. In terms of taxes, the impact is approximately one third of the total tax revenue."

The report also lists elements necessary for the future success of export industry. They need a lot of new talent i.e. sufficient number of competent experts, courage to be creative by increasing research, development and innovation as well as long-term industry policy ensuring competitiveness for themselves. 

I do not claim against the report. It will, however, be interesting to see how the Finnish political apparatus will respond to the needs of its industry. During the last years it has only succeeded to ruin the public economy by spending considerably more money than taxes and other incomes would have allowed. And therefore the government debt has increased from 106 billion euros in year 2019 to 129 billion euros in 2022. 

The interests of that burden alone are estimated to triple in this year to 2,4 billion euros. To be covered by Finnish tax payers for nothing. 

Fortunately, this reality is well understood by the ordinary people. According to a recent opinion poll only 18 percent would like to cover public spending by additional debt instead of reducing public spending. And to improve the operating conditions of companies.

The next elections of the Finnish parliament will be in April. The opinion polls suggest that the two most popular parties will be Conservatives and True Finns. Both of which have promised to reduce governmental budget. In other words, people are now looking for a change to the current left wing government led by the beautiful prime minister Sanna Marin of Social Democrats. 

Taken together: next summer we will see, whether Finland will have a government program improving operating conditions of export industry, reduce governmental debt and retain the best parts of the Nordic welfare society so, that the political left will not make a comeback in elections 2027 to return the country back to the harsh economic position it is right now.

 

Previous thoughts on the same topic:
Fair policy will build a strong Union
A notable difference between Social Democrats in Sweden and Finland
The beautiful PM of Finland has driven herself into a trouble