Bold Decisions to Accelerate Economic Growth
Growth ReStart
Finland’s economic situation is historically weak, and future well-being cannot be secured solely through savings. The Growth ReStart publication presents a series of measures to put Finland’s economy on a growth path. The key question is how to accelerate the growth of companies and thereby increase investments, jobs, and public revenues.
Growth is the prerequisite for Finnish well-being
The financial situation of the Finnish state and municipalities is historically poor. State expenditures have to be cut drastically, yet the growth of debt remains unchecked. This adverse situation has persisted for 17 years, indicating it is not a temporary economic fluctuation.
If Finland’s GDP growth were one percentage point faster each year, it would generate tax revenues of 1.2 billion euros annually at an overall tax rate of about 40%. Over ten years, this would cumulatively amount to 66 billion euros. For comparison, the state’s revenues in the 2025 budget are 76.6 billion euros. Creating long-term sustainable growth is even more critical for Finnish well-being and balancing the state economy than cutting expenditures.
The sustainable growth of state revenues entirely depends on the growth of companies and the number of new jobs they create. Company growth is the key to Finland’s growth and a prerequisite for maintaining Finnish well-being in the future.
For the Growth ReStart publication, we have studied the impact of various measures on Finland’s GDP growth. Additionally, we have assessed how effectively the measures pay for themselves. The proposal highlights the measures with the most significant impact on growth and/or the highest self-financing ratio.
Finnish GDP Volume
Last updated
EUR billion at 2023 prices
Four key steps to boost economic growth
Taxation must be reduced to encourage investment and work
- Lowering the corporate tax to 15 percent to accelerate business investments
- Abolishing inheritance and gift taxes to strengthen domestic ownership
- Simplifying dividend taxation to increase the willingness of companies to grow
- Reducing the highest marginal rates of income tax to encourage work
Ensuring labor availability through skilled immigration
- The goal is to have 45,000 net international skilled workers annually to prevent the working-age population from shrinking
- Incentives for Finns living abroad to return to Finland for work and entrepreneurship
Reducing regulation to promote investment
- Reducing the administrative burden on companies and speeding up permit processes
- Making Finland the smoothest and most predictable business environment in the EU
An attitude change is needed – growth must be sought boldly
- Boards and management of companies must commit to growth strategy
- International markets must be utilized more boldly
EK’s proposals to kick-start growth in Finland
The Growth ReStart measures provide a concrete path to revitalizing Finland’s economic growth. Now is the time to make the necessary decisions.
Lue myös Sami Pakarisen kirjoitus: Perusteluja Kasvun Restart -ehdotuksille
Further information
Sami Pakarinen
Director