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Recession reports - Finland announces stimulus package
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Wednesday, 04 Feb 2009
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The Finnish government announced that it had agreed on a stimulus package having an overall impact of EUR 2 billion.

A statement released by the Finnish government said that "The package will generate at least 25,000 man years in employment. Overall GDP in 2009 and 2010 combined will grow by approximately 1%. The fiscal stimulus impact, 1.7% of GDP or EUR 2 billion brought about by the decisions concerning the budget and supplementary budget of 2009, will also rank the third largest in the EU Commission's comparison among the 27 member states."

The statement pointed out that lifting the social insurance contribution will produce an annual income reduction of 833 million euros in the future. It added that "The stimulus measures of the supplementary budget will weaken the balance in public finances by EUR 912 million in 2009. The stimulus decisions made will raise the spending limits for 2009 by EUR 216 million."

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