The European Commission is set to ask Finland for an explanation over its state budget deficit and growing government debt.
The Commission meeting is scheduled on Wednesday to decide how it will react to Finland’s worsening public finances.
Last year Finland’s budget deficit was 3.2 percent of GDP, and it is set to rise to 3.3 percent this year. Public debt is estimated to hit 62.6 percent this year and 64.8 percent the following year.
According to information received by Yle, the Commission will warn Finland over the breach of fiscal criteria, which would in turn force the government to limit spending plans.
Within several weeks Finland will need to produce an explanation of its economic figures and explain how it will tackle the issue.
If the Commission is not satisfied with the government’s plans, Finland would then be placed in “excessive deficit procedure” with the Commission endorsing measures to turn around the public finances.
If that doesn’t work, then Finland could face financial penalties.
