The government of Finland agreed on a plan to ensure that it would have money to pay welfare costs for its fast-growing elderly population. The plan was valued at EUR 9 billion or USD 11.9 billion. Finnish Finance Minister Jutta Urpilainen said, "Finland is at a crossroads. Either we let the welfare society wither or we defend it decisively."
One of the components of the plan would be to merge Finland's 320 municipalities into larger units. This move would assist in paying for a healthcare system funded by the municipalities.This component of the plan would boost the growth and productivity of public services.Increasing labor supply as well as extending careers would also be part of the measure to improve the economy.
In a note to their clients, Danske Bank Economists Pasi Kuoppamaeki and Juhana Brotherus said, "The new measures should take Finland a long way toward more sustainable public finances. Positive cyclical developments in the global economy should help exports and bring GDP to a positive trend in the latter part of 2013."
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