The CEO of EK calls for a change in Finland’s fear of debt

Joint debt plays a significant role in discussions at the Market Council. Amidst the impact of the coronavirus, the EU approved a large stimulus package funded by shared debt, with support also extended to Ukraine through joint debt. As calls for a new package grow louder, the stance on taking on joint debt in Finland varies widely across political parties. While the right opposes it, the left is in support.

Antti Ronkainen, a researcher in political economy at the University of Helsinki, notes the deep-rooted fear of debt in Finland, dating back to historic perspectives. Elections in Finland often hinge on opposition to debt, whether at a national or EU level, reflecting a broader issue tied to national identity. The Confederation of Finnish Business has proposed a new fund for digital, green, and defense projects, favoring collective debt financing over national subsidies.

Timo Vuori, EK’s director responsible for trade policy, advocates for joint actions at the EU level to address the economic challenges and promote growth. Vuori emphasizes the need for unity among EU countries to effectively compete with global economic giants like the United States and China. He calls for a reevaluation of the current EU budget distribution, prioritizing renewal and a long-term strategy.

Drawing parallels to a housing association, Vuori underscores the necessity of collective debt to address growing costs and evolving needs. He stresses the importance of Finland contributing to joint efforts, likening it to a commitment to the maintenance of a shared space. In order to sustain operations and meet future demands, Vuori believes new needs must be financed collectively.

Vuori’s reflections highlight the interconnectedness of economic challenges and the imperative for collaborative solutions within the EU. By advocating for joint actions and a renewed approach to budgeting, he underscores the importance of solidarity and collective efforts in navigating the complexities of the current economic landscape.