Stubb's Government adheres to earlier agreements and puts emphasis on growth

Government Communications Department 19.6.2014 15.00
Press release 256/2014

The 'mini government programme talks' led by Alexander Stubb reached an understanding by the five parties on the new Government Programme. The Government aims at an open, fair and confident Finland.

Sustainable growth and well-being are built on sound public finances. The programme of Stubb's Government is based on the structural policy decisions made by the former Prime Minister Katainen's Government and the guidelines on implementing budgetary adjustment. The Government is determined to maintain stability in economic policy. The agreed spending limits will be respected and indebtedness will level off in 2018.

The second point of emphasis of the new Government is to create growth and jobs. The Government is committed to avoid increasing the costs and regulatory burden arising to industries. It also earmarked comprehensive additional funding to secure growth and employment.

The new measures encouraging growth are laid down in the Programme Government. The Government is committed, for example, to further important transport projects such as the City Rail Loop, the metro line to the west in Helsinki metropolitan area and the city tram line in Tampere. A number of measures will be introduced on the housing market to stimulate construction and the need to set up a construction company by the state, the municipal sector and the private sector will be evaluated. The Government will not introduce a windfall profit tax, and the 50% deductibility of companies' representation expenses will be brought back to increase jobs as of the beginning of 2015. Furthermore, to promote domestic demand, household purchasing power and employment prospects full adjustments for earnings level and inflation will be introduced in the three lowest income brackets in the taxation of pensions and earned income. The position of families with children will be supported by developing the tax deduction system.

The Government will better the reconciliation of work and social security to increase incentives to work and to raise the employment rate. It will also continue determined efforts to facilitate the employment of those difficult to employ.

Stubb's Government will ensure the continuity, predictability and consistency of foreign and security policy.