Recommendation for a COUNCIL RECOMMENDATION endorsing the national medium-term fiscal-structural plan of Finland
Date: 2024-11-26
Institutions: Directorate-General for Economic and Financial Affairs, European Commission
Subjects: Finland, budget deficit, coordination of EMU policies, economic reform, fiscal policy, investment, macroeconomics, national planning, public debt, structural adjustment

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   EUROPEAN COMMISSION  Strasbourg, 26.11.2024  COM(2024) 715 final  Recommendation for a COUNCIL RECOMMENDATION endorsing the national medium-term fiscal-structural plan of Finland   
 
Recommendation for a 

COUNCIL RECOMMENDATION 

endorsing the national medium-term fiscal-structural plan of Finland 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 121 thereof, 

Having regard to Regulation (EU) 2024/1263, and in particular Article 17 thereof, 

Having regard to the recommendation from the Commission, 

Whereas: 

GENERAL CONSIDERATIONS 

(1) 

(2) 

1 

2 

3 

A reformed EU economic governance framework entered into force on 30 April 2024. 
Regulation  (EU)  2024/1263  of  the  European  Parliament  and  of  the  Council  on  the 
effective  coordination  of  economic  policies  and  on  multilateral  budgetary 
surveillance1,  together  with  the  amended  Regulation  (EC)  No  1467/97  on  the 
implementation  of  the  excessive  deficit  procedure2,  and  the  amended  Council 
Directive  2011/85/EU  on  the  budgetary  frameworks  of  Member  States3  are  the  core 
elements of the reformed EU economic governance framework. The framework aims 
at  ensuring  public  debt  sustainability  and  sustainable  and  inclusive  growth  through 
reforms  and  investments.  It  promotes  national  ownership  and  has  a  medium-term 
focus, combined with an effective and coherent enforcement of the rules. 

The  national  medium-term  fiscal-structural  plans  that  Member  States  submit  to  the 
Council and to  the Commission, ,  are at  the centre of the new economic  governance 
framework. The plans are to deliver on two objectives: i) ensuring that, by the end of 
the adjustment period, general government debt is on a plausibly downward trajectory, 
or stays at  prudent  levels,  and that the government  deficit is  brought and maintained 
below the reference value of 3% of GDP over the medium term, and ii) ensuring the 
delivery  of  reforms  and  investments  responding  to  the  main  challenges  identified  in 
the context of the European Semester and addressing the common priorities of the EU. 

Regulation 

(EC)  No 

Regulation  (EU)  2024/1263  of  the  European  Parliament  and  of  the  Council  of  29  April  2024  on  the 
effective  coordination  of  economic  policies  and  on  multilateral  budgetary  surveillance  and  repealing 
Council 
ELI: 
http://data.europa.eu/eli/reg/2024/1263/oj). 
Council  Regulation  (EU)  2024/1264  of  29  April  2024  amending  Regulation  (EC)  No  1467/97  on 
speeding  up  and  clarifying  the  implementation  of  the  excessive  deficit  procedure  (OJ  L,  2024/1264, 
30.4.2024, ELI: http://data.europa.eu/eli/reg/2024/1264/oj). 
Council Directive (EU) 2024/1265 of 29 April 2024 amending Directive 2011/85/EU on requirements 
(OJ  L,  2024/1265,  30.4.2024,  ELI: 
for  budgetary 
http://data.europa.eu/eli/dir/2024/1265/oj). 

the  Member  States 

frameworks  of 

2024/1263, 

30.4.2024, 

1466/97 

(OJ 

L, 

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To that end, each plan is to present a medium-term commitment to a net expenditure4 
path, which effectively establishes a budgetary constraint for the duration of the plan, 
covering four or five years (depending on the regular term of legislature in a Member 
State).  In  addition,  the  plan  is  to  explain  how  the  Member  State  will  ensure  the 
delivery  of  reforms  and  investments  responding  to  the  main  challenges  identified  in 
the  context  of  the  European  Semester,  in  particular  in  the  country-specific 
recommendations  (including  those  pertaining  to  the  macroeconomic  imbalances 
procedure  (MIP),  if  applicable),  and  how  the  the  Member  State  will  address  the 
common  priorities  of  the  Union.  The  period  for  fiscal  adjustment  covers  a  period  of 
four years, which may be extended by up to three years if the Member State commits 
to delivering a set of relevant reforms and investments that satisfies the criteria set out 
in Regulation (EU) 2024/1263.  

(3) 

(4) 

Following the submission of the plan, the Commission is to assess whether it complies 
with the requirements of Regulation (EU) 2024/1263. 

Upon  a  recommendation  from  the  Commission,  the  Council  is  to  then  adopt  a 
recommendation to set the net  expenditure path  of the Member State concerned and, 
where  applicable,  endorse 
investment  commitments 
the  set  of  reform  and 
underpinning an extension of the fiscal adjustment period. 

CONSIDERATIONS  CONCERNING  THE  NATIONAL  MEDIUM-TERM  FISCAL-
STRUCTURAL PLAN OF FINLAND 

(5) 

On 10 October 2024, Finland submitted its national medium-term fiscal-structural plan 
to  the  Council  and  to  the  Commission.  The  submission  took  place  following  an 
extension  of  the  deadline  set  out  in  Article  36  of  Regulation  (EU)  2024/1263,  as 
agreed with the Commission. 

Process prior to the submission of the plan 

(6) 

On  21  June  2024,  the  Commission  sent,  according  to  Article  9  of  Regulation  (EU) 
2024/1263,  the  reference  trajectory5  to  Finland.  The  Commission  published  the 
reference  trajectory  on  10  October  20246.  The  reference  trajectory  is  risk-based  and 
ensures that, by the end of the fiscal  adjustment period and in the absence of further 
budgetary  measures  beyond  the  adjustment  period,  general  government  debt  is  on  a 
plausibly  downward  trajectory  or  stays  at  prudent  levels  over  the  medium  term,  and 
the  general  government  deficit  is  brought  below  3%  of  GDP  over  the  adjustment 

4 

5 

6 

Net expenditure as defined in Article 2 of Regulation (EU) 2024/1263, namely government expenditure 
net  of  (i)  interest  expenditure,  (ii)  discretionary  revenue  measures,  (iii)  expenditure  on  Union 
programmes fully matched by revenue from Union funds,  (iv) national expenditure on co-financing of 
programmes funded by the Union, (v) cyclical elements of unemployment benefit expenditure and (vi) 
one-offs and other temporary measures.  
Prior  guidance  transmitted  to  the  Member  States  and  Economic  and  Financial  Committee  includes 
trajectories  without  and  with  an  extension  of  the  adjustment  period  (covering  4  and  7  years, 
respectively).  It  also  includes  the  main  initial  conditions  and  underlying  assumptions  used  in  the 
Commission’s  medium-term  government  debt  projection  framework.  The  reference  trajectory  was 
calculated on the basis of the methodology described in the Commission’s Debt Sustainability Monitor 
2023  (https://economy-finance.ec.europa.eu/publications/debt-sustainability-monitor-2023_en).  It 
is 
based on the European Commission Spring 2024 Forecast and its medium-term extension up to 2033, 
and  long-term  GDP  growth  and  ageing  costs  are  in  line  with  the  joint  Commission-Council  2024 
Ageing  Report  (https://economy-finance.ec.europa.eu/publications/2024-ageing-report-economic-and-
budgetary-projections-eu-member-states-2022-2070_en). 
https://economy-finance.ec.europa.eu/economic-and-fiscal-governance/national-medium-term-fiscal-
structural-plans_en#finland 

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period and maintained below that reference value over the medium term. The medium 
term  is  defined  as  the  ten-year  period  after  the  end  of  the  adjustment  period.  In 
accordance  with  Articles  7  and  8  of  Regulation  (EU)  2024/1263,  the  reference 
trajectory is also consistent with the debt sustainability safeguard and deficit resilience 
safeguard.  The  reference  trajectory  of  Finland  sets  out  that,  based  on  the 
Commission’s assumptions and assuming a 7-year adjustment period, net expenditure 
should  not  grow  by  more  than  the  values  provided  in  Table  1.  This  corresponds  to 
average net expenditure growth of 1.5% over the adjustment period (2025-2031) and 
of 1.5% over the period covered by the plan (2025-2028). 

Table 1: Reference trajectory provided by the Commission to Finland on 21 June 2024 

2025 

2026 

2027 

2028 

2029 

2030 

2031 

Average 
2025-
2028 

Average 
2025-
2031 

Maximum net 
expenditure 
growth (annual, %) 

1.4 

1.5 

1.4 

1.5 

1.5 

1.6 

1.7 

1.5 

1.5 

Source: Commission’s calculations. 

(7) 

(8) 

In  line  with  Article  12  of  Regulation  (EU)  2024/1263,  Finland  and  the  Commission 
engaged in  a technical  dialogue from  June to  September 2024. The dialogue centred 
on the net expenditure path envisaged by Finland and its underlying assumptions, the 
envisaged set of reform and investment commitments to underpin an extension of the 
adjustment  period  including  reforms  and  investments  (such  as  the  comprehensive 
reform  of  social  security  and  single  benefit  model  and  the  comprehensive  reform  of 
social  assistance),  as  well  as  the  envisaged  delivery  of  reforms  and  investments 
responding to the main challenges identified in the context of the European Semester 
and the common priorities of the Union in fair green and digital transition, social and 
economic resilience, energy security and the build-up of defence capabilities. 

In  October  2024,  in  line  with  Article  11(3)  and  36(1),  point  (c),  of  Regulation  (EU) 
2024/1263,  according  to  the  information  provided  by  Finland  in  its  plan,  Finland 
engaged in a consultation process with civil society and Finland’s Economic Council. 
According to the information provided by Finland in its plan, the plan was discussed 
by  the  Economic  Council  on  2  October  2024.  Civil  society  was  invited  to  an  open 
hearing on 3 October 2024.  

(9) 

The plan was presented to the national parliament on 2 October 2024. 

Other related processes 

(10)  On  10  October  2024,  Finland  submitted  its  Draft  Budgetary  Plan  for  the  year  2025. 
The Commission adopted an opinion on this Draft Budgetary Plan on [26 November 
2024]7. 

(11)  On  21  October  2024,  the  Council  addressed  to  Finland  a  series  of  country-specific 

recommendations (CSRs) in the context of the European Semester8. 

SUMMARY OF THE PLAN AND THE COMMISSION’S ASSESSMENT THEREOF 

7 
8 

Commission Opinion on the Draft Budgetary Plan of Finland, 26.11.2024, (2024)9054 final. 
Council Recommendation on economic, budgetary, employment and structural policies of Finland, not 
yet published. 

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(12) 

In  line  with  Article  16  of  Regulation  (EU)  2024/1263,  the  Commission  assessed  the 
plan as follows: 

Context: macroeconomic and fiscal situation and outlook 

(13)  Economic  activity  in  Finland  declined  by  1.2%  in  2023,  as  increases  in  consumer 
prices  and  interest  rates  weighed  on  consumption  and  investment,  notably  in  the 
construction  sector.  According  to  the  European  Commission  Autumn  2024  Forecast, 
the  economy  is  expected  to  decline  by  0.3%  in  2024,  as  a  result  of  stagnating 
consumption and declining investment in the first half of the year. In 2025, real GDP 
is  set  to  increase  by  1.5%,  as  private  consumption  and  investment  are  set  to  recover 
thanks  to  real  wage  increases  and  lower  financing  costs,  while  export  growth  is 
projected to bounce back in line with increasing foreign demand. In 2026, real GDP is 
expected  to  increase  by  1.6%,  as  the  broad-based  recovery  is  projected  to  continue. 
Over  the  forecast  horizon  (i.e.,  2024-2026),  potential  GDP  in  Finland  is  expected  to 
increase  by  0.6%  on  average  each  year  from  2024  until  2026,  driven  by  capital 
accumulation and increases in total factor productivity. The unemployment rate stood 
at 7.2% in 2023 and is projected by the Commission to amount to 8.2% in 2024, 7.9% 
in 2025 and 7.5% in 2026. Inflation (GDP deflator) is projected to decrease from 3.9% 
in 2023 to 1.4% in 2024, and to reach 2.1% in 2025 and 1.9% in 2026. 

(14)  Regarding  fiscal  developments,  in  2023  Finland’s  general  government  deficit 
amounted  to  3.0%  of  GDP.  According  to  the  European  Commission  Autumn  2024 
Forecast,  it  is  set  to  reach  3.7%  of  GDP  in  2024  and  to  decline  to  3.0%  of  GDP  in 
2025 and, on a no-policy change basis, to 2.5% in 2026. The European Commission 
Autumn  2024 Forecast  includes Finland’s draft  budget  for 2025 that the government 
proposed  to  the  national  parliament  in  September.  General  government  debt  was 
77.1%  of  GDP  at  end-2023.  According  to  the  European  Commission  Autumn  2024 
Forecast,  the  debt  ratio  is  expected  to  increase  to  82.6%  of  GDP  at  end-2024.  It  is 
projected  to  increase  further  to  84.7%  of  GDP  at  end-2025  and  85.3%  at  end-2026. 
The fiscal  forecast  by the Commission  does not  consider  the policy commitments  in 
the medium-term plans as such until they are underpinned by credibly announced and 
sufficiently specified concrete policy measures. 

Net expenditure path and main macroeconomic assumptions in the plan 

(15)  Finland’s  national  medium-term  fiscal-structural  plan  covers  the  period  2025-2028 

and presents a fiscal adjustment over seven years. 

(16)  The  plan  contains  the  information  required  by  Article  13  of  Regulation  (EU) 

2024/1263. 

(17)  The  plan commits  to the net  expenditure path  indicated in  Table 2, corresponding to 
average  net  expenditure  growth  of  2.2%  over  the  years  2025-2028.  In  addition, 
Finland commits to  a set  of reforms and investments  with  the view to  extending the 
adjustment  period  to  7  years  (2025-2031),  over  which  the  average  net  expenditure 
growth is planned to be 2.4%. The average net expenditure growth reported in the plan 
over  the  adjustment  period  (2025-2031)  is  higher  than  the  reference  trajectory 
transmitted  by  the  Commission  on  21 June  2024.  The  plan  assumes  a  smoothed 
potential GDP growth of 0.9% for each year of the adjustment period. In addition, the 
plan  expects  the  growth  rate  of  the  GDP  deflator  to  increase  from  1.7%  in  2024  to 
2.1% in 2025 and gradually further to 2.4% by the end of the adjustment period. 

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Table 2: Net expenditure path and main assumptions in Finland’s plan  

Extension of the 
adjustment period 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

2031 

Average 
over the 
period of 
validity 
of the 
plan 

2025-
2028 

Average 
over the 
adjust-
ment 
period 

2025 – 
2031 

Net 
expenditure 
growth 
(annual, %) 

Net 
expenditure 
growth 
(cumulative
, from base 
year 2023, 
%) 

Potential 
GDP 
growth (%) 

Inflation 
(GDP 
deflator 
growth) 
(%) 

3.7 

1.6 

1.9 

2.6 

2.6 

2.8 

2.8 

2.9 

2.2 

2.4 

3.7 

5.3 

7.4 

10.1 

13.0 

16.1 

19.4 

22.8 

n.a. 

n.a. 

1.1 

0.9 

0.9 

0.9 

0.9 

0.9 

0.9 

0.9 

0.9 

0.9 

1.7 

2.1 

2.2 

2.2 

2.3 

2.3 

2.4 

2.4 

2.2 

2.3 

Source: Medium-term fiscal-structural plan of Finland and Commission’s calculations.  
Implications of the plan’s net expenditure commitments for general government debt 

(18) 

If the net  expenditure path  committed to  in  the plan and the underlying assumptions 
materialise,  general  government  debt  would,  according  to  the  plan,  decrease  from 
81.7% in 2024 to 78.2% of GDP at the end of the adjustment period in 2031, as per the 
following table. After the adjustment, over the medium term (i.e. until 2041), the debt 
ratio is expected to decline further according to the plan, dropping below 60% of GDP 
in 2039 and reaching 52.7% in 2041. 

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Table 3: General government debt and balance developments in Finland’s plan  

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

2031 

2041 

Government 
debt 

(% of GDP) 

Government 
balance 

(% of GDP) 

76.6 

81.7 

83.2 

83.9 

83.6 

82.9 

81.4 

79.7 

78.2 

52.7 

-2.9 

-3.7 

-2.9 

-2.0 

-1.4 

-0.9 

-0.4 

0.0 

0.3 

1.6 

Source: Medium-term fiscal-structural plan of Finland. 

Thus,  according  to  the  plan,  general  government  debt  would  be  brought  below  the 
Treaty reference value of 60% of GDP over the medium term. This is plausible  as, 
based  on  the  plan’s  assumptions,  debt  would  be  projected  to  stand  below  60%  of 
GDP  by  2041  under  all  deterministic  stress  tests  of  the  Commission’s  Debt 
Sustainability  Analysis.  Therefore,  based  on  the  plan’s  policy  commitments  and 
macroeconomic  assumptions,  the  net  expenditure  path  put  forward  in  the  plan  is 
consistent with the requirement for debt as set out in Articles 6, point (a), and 16(2) 
of Regulation (EU) 2024/1263. 

Implications  of  the  plan’s  net  expenditure  commitments  for  the  general  government 
balance 

(19)  Based  on  the  plan’s  net  expenditure  path  and  assumptions,  the  general  government 
deficit  would  fall  below  3%  of  GDP  in  the  first  year  of  the  adjustment  period  (i.e. 
2025)  and  continue  to  decline  afterward,  turning  into  a  surplus  in  2031.  Thus, 
according  to  the  plan,  the  general  government  balance  would  not  exceed  the  3%  of 
GDP reference value at the end of the adjustment period (2031). In addition, in the ten 
years following the adjustment period (i.e. until 2041), the government deficit would 
not  exceed  3%  of  GDP.  Therefore,  based  on  the  plan’s  policy  commitments  and 
macroeconomic  assumptions,  the  net  expenditure  path  put  forward  in  the  plan  is 
consistent  with  the requirement for the deficit as set  out  in  Articles 6, point  (b),  and 
16(2) of Regulation (EU) 2024/1263. 

Time profile of the fiscal adjustment 

(20)  The  time  profile  of  the  fiscal  adjustment,  measured  as  the  change  in  the  structural 
primary balance, as described in the plan, is frontloaded, compared to the linear path 
referred to as a rule under Article 6, point (c), of Regulation (EU) 2024/1263. This is 
due  to  larger  fiscal  consolidation  taking  place  in  2025,  and  to  the  recording  in  the 
national  accounts  of  defence  procurement  in  2025  and  2027  which  leads  to  further 
deviations from the linear profile. As a result, the fiscal adjustment over the first four 
years  of  the  plan  is  more  than  proportional  to  the  total  adjustment  effort.  Therefore, 
based  on  the  plan’s  policy  commitments  and  macroeconomic  assumptions,  the  net 
expenditure  path  put  forward  in  the  plan  is  consistent  with  the  no-backloading 
principle set out in Article 6, point (c), of Regulation (EU) 2024/1263. 

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Table 4: Structural primary balance developments in Finland’s plan  

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

2031 

Structural 
primary 
balance 

(% of GDP) 

Change in 
structural 
primary 
balance 

(pps.) 

-0.34 

-0.37 

0.44 

1.10 

1.42 

1.78 

2.06 

2.34 

2.62 

n.a. 

-0.04 

0.82 

0.66 

0.32 

0.36 

0.28 

0.28 

0.28 

Source: Medium-term fiscal-structural plan of Finland 

Consistency of the plan with the deficit resilience safeguard 

(21) 

If  the  plan’s  assumptions  and  commitments  materialise,  the  structural  deficit  would 
remain below 1.5% of GDP throughout the adjustment period. Therefore, based on the 
plan’s  policy  commitments  and  macroeconomic  assumptions,  the  common  resilience 
margin  referred  to  in  Article  8(1)  of  Regulation  (EU)  2024/1263  will  continue  to  be 
respected, and therefore the additional improvement in the structural primary balance 
referred to in Article 8(2) of Regulation (EU) 2024/1263 is not required. 

Consistency of the plan with the debt sustainability safeguard 

(22) 

In  accordance  with  Article  7  of  Regulation  (EU)  2024/1263,  as  general  government 
debt will be between 60% and 90% of GDP over the adjustment period according to 
the  plan,  the  debt  ratio  is  required  to  decline  by  at  least  0.5  percentage  points  on 
average per year until it falls below 60%. This average decline is calculated over the 
period 2024-2031 and amounts to 0.5 percentage points in the plan. Therefore, based 
on  the  plan’s  policy  commitments  and  macroeconomic  assumptions,  the  net 
expenditure  path  put  forward  in  the  plan  is  consistent  with  the  debt  sustainability 
safeguard. 

Macroeconomic assumptions of the plan 

(23)  The  plan  is  based  on  a  set  of  assumptions  which  differs  from  the  Commission’s 
assumptions  transmitted  to  Finland  on  21  June  2024.  In  particular,  the  plan  uses 
different assumptions for the initial position in 2024, potential GDP growth and stock-
flow adjustments. Moreover, the fiscal adjustment is frontloaded. A careful assessment 
of  these  differences  in  assumptions  is  necessary,  especially  as  the  average  net 
expenditure  growth  in  the  plan  is  higher  than  in  the  reference  trajectory.  The 
differences  in  assumptions  with  the  most  significant  impact  on  average  net 
expenditure growth are listed below, together with an assessment of each difference in 
assumptions considered in isolation. 

• 

The plan uses smoothed potential output growth over the period 2024-2041. 
Compared  with  the  Commission’s  assumptions,  this  increases  potential 
growth over the adjustment period and therefore contributes to higher average 
net expenditure growth. This occurs both through a direct effect and because 
higher GDP growth entails a faster decline in the debt-to-GDP ratio, requiring 
a  lower  fiscal  adjustment  to  fulfil  the  debt  sustainability  safeguard.  The 
possibility  to  use  alternative  potential  growth  assumptions  is  in  line  with 

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• 

• 

Article 36, paragraph (1) , point (f), of Regulation (EU) 2024/1263, provided 
that cumulative growth over the projection horizon (i.e. up to 2041) is broadly 
in  line  with  the  Commission’s  assumptions,  which  is  the  case  in  the  plan. 
Consequently, this assumption is deemed to be duly justified. 

The  plan  presents  a  frontloaded  fiscal  adjustment.  Compared  with  the 
Commission’s  assumption  of  a  linear  adjustment,  this  leads  to  a  more  rapid 
decline  in  debt  and  reduces  interest  expenditure.  This  contributes  to  higher 
average  net  expenditure  growth  over  the  adjustment  period  in  the  plan  than 
the  fiscal 
according 
adjustment  is  in  line  with  Article  6(c)  of  Regulation  (EU)  2024/1263. 
Consequently, this assumption is deemed to be duly justified. 

the  Commission’s  assumptions.  Frontloading 

to 

The plan assumes lower stock-flow adjustments from 2025 to 2030, at 1.3% 
of  GDP  on  average,  compared  with  1.6%  of  GDP  in  the  Commission’s 
assumptions. This contributes to higher average net expenditure growth over 
the  adjustment  period  in  the  plan  than  according  to  the  Commission’s 
assumptions. This reflects the financing and delivery of security and defence 
equipment as well as investments financed by the proceed of sales of public 
assets. Consequently, this assumption is deemed to be duly justified.  

The remaining difference in assumption relates to the revised initial position in 2024 
and  corresponds  to  a  slightly  smaller  structural  primary  deficit  than  expected  in 
spring.  This  does  not  have  a  significant  impact  on  average  net  expenditure  growth 
compared to the Commission’s assumptions. Overall, the difference between the net 
expenditure path in the plan and the reference trajectory is explained by differences 
in assumptions that are duly justified, in line with Article 13(b) of Regulation (EU) 
2024/1263.  Overall,  all  the  differences  in  assumptions  taken  together  lead  to  an 
average  net  expenditure  growth  in  the  plan  that  is  higher  than  the  reference 
trajectory. The Commission will take into account the above assessment of the plan’s 
assumptions in future assessments of compliance with the net expenditure path. 

Fiscal strategy of the plan  

(24)  According  to  the  indicative  fiscal  strategy  in  the  plan,  the  commitments  on  net 
expenditure  will  be  delivered  through  both  expenditure  restraint  and  discretionary 
revenue increases. The government is implementing two packages of measures that are 
estimated  to  have  a  fiscal  yield  of  EUR  9  billion  (3.8%  of  GDP).  They  are  broadly 
divided into 3.5 billion (1.5% of GDP) of higher revenues (i.e. direct revenues from an 
increased  VAT  rate  and  indirect  revenues  from  increased  income  tax  and  social 
contributions  due  to  higher  employment  caused  by  other  measures)  and  5.5  billion 
(2.3%  of  GDP)  from  lower  expenditure  (i.e.  savings  coming  from  the  wellbeing 
service  counties,  reduction  in  social  benefits,  and  reduction  in  other  expenditure). 
Most  policy  measures  pertaining  to  these  two  consolidation  packages  are  already 
adopted, others are to be confirmed or adjusted and quantified in the annual budgets. 
Several measures both on the revenue and expenditure side with a sizeable impact in 
2025  have  already  been  adopted.  At  the  same  time,  there  are  risks  to  the 
implementation  of  the  indicative  fiscal  strategy  in  the  plan,  which  stem  from  the 
possibility  of  lower-than-expected  savings  realised  by  measures  targeting  wellbeing 
service  counties  and  lower  than  expected  employment  effects  of  the  government’s 
labour market reforms. In addition, the Draft Budgetary Plan 2024 for 2025 specifies 

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8 

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the policy measures through which the net expenditure commitment for 2025 will be 
achieved9. 

Set of reform and investment commitments in the plan to underpin an extension of the 
fiscal adjustment period  

(25) 

In the plan, Finland commits to a set of reforms and investments, aiming to improve 
potential  growth  and  fiscal  sustainability,  to  underpin  an  extension  of  the  fiscal 
adjustment period from 4 to 7 years. The set of reforms and investments is composed 
of  a  number  of  commitments  from  the  recovery  and  resilience  plan  (RRP);  one 
commitment  from  the  RRP  with  additional  specifications  to  contain  budgetary 
overruns; as well as two new reforms. This includes the following measures : 

• 

• 

• 

• 

Introduction  of  the  Nordic  model  of  employment  services.  The  reform 
overhauls  the  functioning  of  employment  services  in  Finland,  by  increasing 
the  resources  available  to  employment  services,  improving  the  support 
offered  to  jobseekers  and  tightening  job  seeking  obligations  for  the 
unemployed  registered  to  the  employment  services.  The  information  system 
supporting the employment services is being modernised in order to improve 
the  job  seeking  process.  The  reform  is  a  commitment  under  the  RRP 
(P3C1R1), and the main target was to conduct 2 million interviews between 
January 2023 and March 2024. According to the plan, it is estimated that the 
measure  could  increase  employment  by  around  9,500-10,000  workers, 
starting in 2025. 

Removal  of  additional  days  of  unemployment  allowance.  The  reform 
gradually  abolishes  additional  days  of  unemployment  allowance  that  people 
beyond  a  certain  age  threshold  could  request  after  the  regular  period  of 
unemployment  benefit  expired.  The  minimum  age  required  to  access 
additional  days  of  unemployment  benefits  is  to  rise  by  one  year/age  group 
from the birth of 1963 onwards and the possibility of an additional day is to 
be abolished completely for those born in 1965 and thereafter. The reform is a 
commitment  under the RRP (P3C1R2) to  be implemented by Q2 2023. The 
additional  days  of  unemployment  benefits  are  to  be  phased  out  by  2029. 
According  to  the  plan,  it  is  estimated  that  the  measure  could  increase 
employment by around 9,100 workers, starting in 2025. 

Implementation of the national health and social services reform in support of 
advancing  the  statutory  care  guarantee.  The  reform  consisted  of  the 
legislation  on  establishing  21  wellbeing  services  counties,  which  from  1 
January  2023  onwards  are  responsible  for  organising  health  care,  social 
welfare,  and  rescue  services.  In  addition,  the  municipality  of  Helsinki 
organises  these  services.  Furthermore,  the  joint  authority  for  Helsinki  and 
Uusimaa, the so-called HUS Group, is responsible for organising specialised 
medical  care in  the Uusimaa region. The reform  is  a commitment under the 
RRP (P4C1R1).  

Introducing  digital  innovation  in  social  and  healthcare.  The  reform  aims  at 
increasing the share of population (aged 20 years and above) using healthcare 
and social welfare e-services from 26% (2020 baseline) to 35%. New digital 

9 

See Commission Opinion on the Draft Budgetary Plan of Finland, 26.11.2024, (2024)9054 final. 

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• 

• 

• 

• 

services are to be rolled out to achieve the target. The reform is a commitment 
under the RRP (P4C1I4) and is expected to be completed by the end of 2025. 

Investments  in  research,  development  and  innovations  as  well  as  the  clean 
transition.  This  measure  includes  several  investments  in  clean  technologies 
included in the RRP (P1C1I2, P1C2I1, P1C2I3, P3C3I1, P1C1I1).  

Renewing the statutory duties and administrative procedures of the wellbeing 
services  counties.  In  view  of  significant  deficits  incurred  by  wellbeing 
services counties, the government is including in the plan further measures to 
correct the situation and ensure a sound financial management. Examples of 
such  measures  include  the  adjustment  of  minimum  staffing  levels  in 
residential  care  for  older  people,  adjusting  client  fees,  the  rationalisation  of 
premises use, the enhancement of competition in public procurement, and the 
introduction  of  digital  service  channels,  among  others.  Based  on  the 
Government  Programme  and  the  General  Government  Fiscal  Plan  (2025-
2028),  the  government  estimates  that  these  new  adjustments  could  bring 
around  EUR  1.56  billion  in  savings  by  2028.  This  includes  both  statutory 
measures as well as wellbeing services counties’ own consolidation measures. 
These  measures  represent  an  additional  specification  of  the  commitment 
under the RRP described above (P4C1R1). 

Comprehensive  reform  of  social  assistance.  The  aim  of  the  reform  is  to 
reinforce the role of social assistance  as a last-resort and short-term form of 
benefit,  by  correcting  flaws  in  the  sanction  system  that  allowed  social 
assistance  to  fully  compensate  for  lost  unemployment  benefits  when 
beneficiaries  do  not  comply  with  job-seeking  obligations.  The  government 
estimates that the reform could lead to halving the number of people in need 
of social assistance  and  could  bring EUR 100 million  in  fiscal  savings each 
year.  Following  stakeholders  consultations,  the  government  proposal  is 
expected to be shared with Parliament in autumn 2025 and to enter into force 
in the second quarter of 2026. 

Comprehensive  reform  of  social  security  and  the  introduction  of  a  single 
benefit  model.  One  aspect  of  the  reform  is  to  simplify  social  security  by 
allowing  to  access  different  benefits  through  one  administrative  application. 
Following  stakeholders  consultations,  the  reform  is  expected  to  be  shared 
with Parliament in autumn 2025 and to enter into force in the second quarter 
of 2026. 

(26)  The measures underpinning an extension of the adjustment period that are part of the 
RRP  (including  the  additional  specification  to  renew  the  statutory  duties  and 
administrative procedures of the wellbeing  services  counties) are in  line with  Article 
14(3)  of  Regulation  (EU)  2024/1263  as  they  are  sufficiently  detailed,  front-loaded, 
time-bound and verifiable. The two measures on the comprehensive reform of social 
assistance  and  the comprehensive reform  of social  security  and the introduction of  a 
single benefit  model have yet  to  be legislated, therefore at  the present  stage they are 
not detailed. The plan provides an indicative timeline for their adoption and qualitative 
target indicators to monitor their implementation. 

(27)  The  RRP  commitments  underpinning  the  extension  contain  significant  reforms  and 
investments  aimed  at  improving  fiscal  sustainability  and  enhancing  the  growth 
potential of the economy. In addition, Finland commits to continuing the reform effort 
over the period covered by the medium-term fiscal-structural plan and maintaining the 

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nationally financed investment levels realised over the period covered by the RRP (see 
below, Table 5). The commitments will be monitored throughout the implementation 
of the plan. Accordingly, commitments under the  RRP can be taken into account for 
the  extension  of  the  adjustment  period  as  provided  by  Article  36(1),  point  (d),  of 
Regulation (EU) 2024/1263. 

(28)  The set of reforms and investments underpinning the extension is expected to improve 
the growth and resilience potential of Finland’s economy in a sustainable manner, as 
required by Article 14(2), point (a), of Regulation (EU) 2024/1263. The measures are 
expected to improve the functioning of the labour market, support innovation, improve 
access to healthcare and social welfare, and modernise social security, thus improving 
the growth and resilience potential of the Finnish economy. The labour market reforms 
put forward are expected to support the unemployed in finding a job and to increase 
activity  rates  among  older  workers.  The  plan  estimates  that  the  two  measures  could 
create  around  20,000  jobs  in  2025-2029.  The  investments  in  R&D  contained  in  the 
RRP  are  expected  to  improve  both  the  growth  potential  as  well  as  the  resilience  of 
Finland,  by  increasing  productivity  (the  plan  estimates  conservatively  that  a  1% 
increase  in  R&D  investment  increases  productivity  by  0.02%),  crowding-in  private 
investment, and supporting the green transition and the decarbonisation of the energy 
system.  According  to  the  Finnish  government,  the  establishment  of  the  wellbeing 
service  counties  and  the  development  of  e-health  services  are  expected  to  improve 
access to healthcare, which is especially important as unmet needs for medical care are 
above  the  EU  average  and  Finland  is  a  quickly  ageing  society.  The  reforms  to 
introduce  the  single  benefit  model  and  the  reform  of  social  assistance  are  meant  to 
optimise  social  policy,  reduce  administrative  costs,  make  social  security  fairer,  and 
increase  incentives  to  work,  thus  supporting  employment.  The  effects  on  social 
cohesion  would  need  to  be  monitored.  Moreover,  the  employment  impacts  of  the 
labour market reform, or the productivity increase following investments in R&D still 
need  to  materialise.  In  addition,  the  wellbeing  service  counties  are  facing  several 
difficulties  in  their  first  years  of  operations,  and  the  government  put  forward  in  the 
plan  additional  specifications  to  one  RRP  commitment  to  renew  the  statutory  duties 
and administrative procedures of the wellbeing services counties in order to curb their 
deficit.  Overall,  the  assumptions  regarding  the  growth  impact  of  the  reforms  and 
investments underpinning the extension, taken together, appear plausible, but a careful 
monitoring  of  future  developments  and  exact  impact  is  needed.  This  also  calls  for 
meaningful  stakeholder  consultations,  including  social  partners  and  relevant  civil 
society organisations, and an assessment of the distributional and cumulative effects of 
the measures. 

(29)  The set of reforms and investments underpinning the extension is expected to support 
fiscal  sustainability  as  required  by  Article  14(2),  point  (b),  of  Regulation  (EU) 
2024/1263.  These  measures  are  complementary  to  the  fiscal  consolidation  packages 
already  enacted,  as  mentioned  above  when  presenting  the  fiscal  strategy.  The  main 
direct effect of these additional measures is expected from implementing measures to 
reduce  the  deficit  of  the  wellbeing  service  counties,  which  amounted  to  EUR  1.4 
billion in 2023, by renewing the statutory duties and administrative procedures of the 
wellbeing services counties. More specifically, the government is enacting measures to 
reduce the expenditure of the wellbeing service counties by EUR 685 million in 2025-
2028, while the wellbeing service counties themselves aim to implement measures to 
reduce  their  expenses  by  EUR  874  million  by  2028.  Moreover,  the  government 
expects  to  achieve  EUR  100  million  in  yearly  savings  from  the  reform  of  social 
assistance. Other direct savings may originate from the lower administrative cost per 

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benefit application derived from the adoption of the single benefit model, and from the 
lower payments related to the removal of additional days of unemployment allowance. 
The  indirect  fiscal  savings  are  mainly  linked  to  the  expected  positive  employment 
impact  of  the  labour  market  reforms  (i.e.  the  introduction  of  the  Nordic  model  of 
employment  services  and  the  removal  of  additional  days  of  unemployment 
allowances),  which  would  increase  potential  growth  and  generate  tax  revenues.  The 
comprehensive  reform  of  social  security  and  the  single  benefit  model  and  the 
comprehensive  reform  of  social  assistance  may  also  have  an  employment  impact  by 
increasing  incentives  to  work,  and  thus  an  indirect  positive  fiscal  impact.  While  the 
realised  savings  from  the  measures  could  be  lower  than  expected,  the  fiscal  savings 
stemming from the additional RRP specification of renewing the statutory duties and 
administrative  procedures  of  the  wellbeing  services  counties  are  likely  to  be  non-
negligible,  given  the  magnitude  of  the  savings  estimates  (i.e.  EUR  1.6  billion). 
Overall, the realisation of indirect saving hinges crucially on the employment impact 
of the labour market reforms. 

(30)  The set of reforms and investments underpinning the extension adresses the common 
priorities  of  the  EU  as  required  by  Article  14(2),  point  (c)  of  Regulation  (EU) 
2024/1263.  The  social  security  and  labour  market  reforms  contribute  to  social 
resilience in particular by complying with principles of the European Pillar of Social 
Rights  such  as  active  support  to  employment,  social  protection  and  unemployment 
benefits.  The  RRP  investments  on  R&D  for  the  green  transitions  are  expected  to 
increase  innovation  in  low  carbon  technology  and  energy  infrastructure,  therefore 
contributing to a fair green transition and to ensuring energy security. The introduction 
of digital innovation in social and healthcare contributes to a fair digital transition by 
increasing the digitalisation of public services. The other common priority of the EU, 
namely the build-up of defence capabilities, is not addressed by the set of reforms and 
investments underpinning an extension. 

(31)  The  set  of  reforms  and  investments  underpinning  the  extension  addresses  the 
relevant10  CSRs  issued  as  part  of  European  Semester  as  required  by  Article  14(2), 
point  (d)  of  Regulation  (EU)  2024/1263.  In  particular,  the  set  of  reforms  and 
investments underpinning the extension addresses the following CSRs aimed at: 

• 

• 

• 

active  labour  market  policies,  incentives  to  work  &  labour  market 
participation (CSRs issued in 2019 and 2020), through the introduction of the 
Nordic model of employment services and the removal of additional days of 
unemployment benefits; 

healthcare,  long-term  care  and  budgetary  framework  and  fiscal  governance 
(CSRs issued in 2019 and 2020), through the reform of the wellbeing service 
counties and the introduction of digital innovation in healthcare; 

renewable  energy,  energy  infrastructure  &  networks,  energy  efficiency, 
research  and  innovation,  regional  development  &  local  public  services  and 
business environment (incl. SME policies) (CSRs issued in 2019, 2020, 2022 
and 2023) through the different RRP investments in energy technologies and 

10 

CSRs considered ‘relevant’ are recommendations: i) adopted by the Council from 2019 onwards, ii) for 
which the Member State has not yet made ‘full’ or ‘substantial’ progress in addressing them and are not 
outdated (assessed as ‘Not Assessed / No Input to Add ’), as assessed in the latest European Semester 
surveillance exercise (available in CeSaR (europa.eu)), iii) not linked to purely fiscal SGP-related and 
iv) not covering the same challenge but in a rephrased manner. 

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infrastructures,  low-carbon  hydrogen  and  carbon  dioxide  capture  and 
utilisation, recycle of key materials and other RDI funding; 

• 

poverty, social inclusion and social protection (CSR issued in 2024) through 
the  reform  of  social  security  and  the  single  benefit  model  and  of  social 
assistance. 

(32)  The  plan  ensures  that  the  planned  overall  level  of  nationally  financed  public 
investment realised on average over the period covered by the RRP is maintained, as 
required by Article 14(4) of Regulation (EU) 2024/1263. 

Table 5: Nationally financed public investment in the plan (% of GDP) 

Average level over 
the period covered 
by the RRP (2022 
to 2026) (11) 

T+1 

T+2 

T+3 

T+4 

Average over 
the duration of 
the plan 

4.4 

4.7 

4.5 

4.6 

4.4 

4.6 

Source: Medium-term fiscal-structural plan of Finland 

(33)  Finally, the set of reform and investment commitments underpinning an extension can 
be  regarded  as  consistent  with  the  commitments  in  the  RRP  and  the  Partnership 
Agreement agreed under the Multiannual Financial Framework as required by Article 
14(4))  of  Regulation  (EU)  2024/1263.  The  introduction  of  the  single  benefit  model 
and  the  reform  of  the  social  assistance  do  not  contradict  commitments  in  the  RRP, 
while the other measures stem directly from commitments taken under the RRP. 

(34) 

In  conclusion,  the  set  of  reforms  and  investments  underpinning  the  extension  of  the 
adjustment period is assessed as fulfilling, taken altogether, the criteria in Article 14 of 
Regulation (EU) 2024/1263. As a result, the adjustment period can be extended from 4 
to 7 years, as put forward in the plan. 

Other reform and investment  intentions  in the plan  responding to the main challenges 
identified in the context of the European Semester and addressing the common priorities 
of the Union 

(35)  Besides  the  set  of  reforms  and  investments  underpinning  an  extension  of  the 
adjustment period, the plan describes policy intentions concerning other  reforms  and 
investments  to  respond  to  the  main  challenges  identified  in  the  context  of  the 
European Semester, especially the CSRs, and to address the common priorities of the 
EU. The plan includes ten reforms and investments. 

(36)  Concerning  the  common  priority  of  a  fair  green  and  digital  transition,  including  the 
climate objectives set out in Regulation (EU) 2021/1119, the plan includes a reform to 
increase  spending  in  R&D  to  4%  of  GDP  by  2030,  with  one-third  of  the  funding 
coming  from  public  sources,  which  would  translate  an  increase  of  around  EUR  280 
million per year until 2030. The additional public R&D fundings will be allocated to 
the support of corporate R&D, to cooperation between businesses and researchers, to 
funding  of  research  projects  and  to  research  infrastructures,  among  other  items.  The 
measure addresses the 2019 and 2020 CSRs related to research and innovation and is 

11 

It is assumed and accepted that the two periods will overlap. The requirement to maintain the level of 
investment is intended to apply to the years after the end of the lifetime of the Recovery and Resilience 
Facility. 

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consistent with Finland’s Digital Compass and the country’s National Digital Decade 
Strategic Roadmap. 

(37)  Concerning  the  common  priority  of  social  and  economic  resilience,  including  the 
European  Pillar  of  Social  Rights,  the  plan  includes  measures  to  reduce  benefits 
creating  disincentives  to  work  (e.g.  changes  to  unemployment  benefits  expected  to 
increase employment by 40,000 workers during the government term, and index cuts 
in social security benefits expected to increase employment by 18,600 workers in the 
same period), measures to mitigate skills shortages (e.g. increases in both funding and 
available  spots  in  fields  experiencing  labour  shortages  such  as  medicine),  and 
measures to improve access to healthcare and reduce waiting lists (e.g. by increasing 
the  funding  for  reimbursement  of  private  healthcare  expenditure).  The  measures 
address the 2019, 2020, 2022 and 2023 CSRs related to active labour market policies, 
incentives to work & labour market participation, healthcare, and education. 

(38)  Concerning  the  common  priority  of  energy  security,  the  plan  does  not  include  other 

reforms and investments. 

(39)  Concerning  the  common  priority  of  defence  capabilities,  the  plan  does  not  include 

other reforms and investments. 

(40)  The  plan  does  not  describe  other  reforms  and  investments  to  address  the  CSRs  (for 
which  no  substantial  progress  has  been  made  according  to  the  Commission’s 
assessment) on skills, vocational education and training and adult learning, transport, 
long-term care, anti-money laundering (CSRs issued in 2019, 2020 and 2023). 

(41)  The  plan  provides 

information  on 

the  consistency  and,  where  appropriate, 
complementarity, with the cohesion policy funds and Finland’s RRP. The plan makes 
an appropriate reference to Finland’s 2024 National Reform Programme 2024, which 
describes synergies and complementarity with cohesion policy and RRP. 

(42)  The plan provides an overview of the public investment needs of Finland related to the 
common  priorities  of  the  EU.  In  relation  to  the  fair  green  and  digital  transition,  the 
plan  highlights  the  need  for  investments  in  clean  energy  to  reduce  the  dependency 
from fossil fuels, and in disruptive technologies such as artificial intelligence to further 
strengthen the green transition. In relation to social and economic resilience, the plan 
highlights  the  need  for  investment  related  to  increasing  educational  attainment  and 
continuous  learning.  In  relation  to  energy  security,  the  plan  highlights  the  need  for 
investment aimed at reducing the dependence of the EU on third countries. In relation 
to  building  up  defence  capabilities,  the  plan  highlights  the  need  for  investments  to 
strengthen Finland’s defence capabilities, in alignment with NATO commitments. 

Conclusion of the Commission’s assessment 

(43)  Overall, the Commission is of the view that Finland’s plan fulfils the requirements of 

Regulation (EU) 2024/1263. 

OVERALL CONCLUSION 

(44) 

In accordance with Article 17 of Regulation (EU) 2024/1263, the net expenditure path 
as  set  in  the  plan  should  be  recommended  by  the  Council  to  Finland  and  the  set  of 
reforms  and  investments  underpinning  the  extension  of  the  adjustment  period  to  7 
years should be endorsed. 

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HEREBY RECOMMENDS that Finland 

(1) 

(2) 

Ensure  that  net  expenditure  growth  does  not  exceed  the  maxima  established  in 
Annex I to this Recommendation. 

Implement  the  set  of  reforms  and  investments  that  underpins  the  extension  of  the 
this 
fiscal  adjustment  period 
Recommendation, by the indicated deadlines. 

to  7  years,  as  established 

in  Annex  II 

to 

In addition, the Council invites Finland to ensure the delivery of other reforms and 
investments  responding  to  the  main  challenges  identified  in  the  context  of  the 
European Semester, in particular in the CSRs, and addressing the common priorities 
of the Union. 

ANNEX I 
Maximum growth rates of net expenditure 
(annual and cumulative growth rates, in nominal terms) 
Finland 

Years 

2025 

2026 

2027 

2028 

Growth rates 

Annual 

(%) 

Cumulative (*) 

1.6 

5.3 

1.9 

7.4 

2.6 

2.6 

10.1 

13.0 

(*) The cumulative growth rates are calculated by reference to the base year of 2023. 
ANNEX II 
Set of reforms and investments that underpins an extension of the adjustment period to 7 years 
Finland 

Main objective 

the  Nordic 
Introduction  of 
model of employment services 
(Existing 
RRP  measure: 
Reference  in  Finland’s  RRP  - 
P3C1R1) 

the 
The  objective  of 
measure  is  to  reform  the 
public 
employment 
services process. 

Monitoring indicator(s) 

Satisfactory fulfilment of 
relevant RRP milestones 
and targets 77, 78, 79 

Description and timing 
of key steps12 

1.  By Q2 2022: Entry 
into force of the Act 
on Public 
Employment and 
Business Services 
regulating the 
Nordic model of 
employment 
services for the 
jobseeker’s service 
process, as 
referenced in 
Milestone 77 
2.  By Q4 2023: 

Increase in the 
annual number of 
job search 
interviews 
conducted in line 
with the Nordic 
model of 
employment 
services, from 

12 

The  timing  of  RRP  measures  is  indicative  and  corresponds  to  commitments  in  the  relevant  Council 
Implementing Decision.  

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15 

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Removal of additional days of 
unemployment allowance 
(Existing 
RRP  measure: 
Reference  in  Finland’s  RRP  - 
P3C1R2) 

the 

Preparation  of 
social 
welfare and health care reform 
in support of implementing the 
care guarantee 

(Existing 
RRP  measure: 
Reference  in  Finland’s  RRP  - 
P4C1R1) 

to 

the 
The  objective  of 
foster 
is 
reform 
employment 
by 
removing  disincentives 
to  work  for  older  people 
and 
a 
targeting of redundancies 
on older employees 

attenuating 

of 

part 

As 
the 
preparation  of  the  social 
and  healthcare  reform, 
the  objective  of 
this 
measure  is  to  improve 
the accessibility of health 
and  social  services  by 
the 
promoting 
implementation  of 
the 
care guarantee. 

Satisfactory fulfilment of 
RRP 
relevant 
the 
milestone 80 

Satisfactory fulfilment of 
RRP 
relevant 
the 
milestones 133 and 134 

783,070 to 
2,000,000,as 
referenced in Target 
78 

3.  By Q4 2023: All 
five digital 
functionalities 
required by the 
Nordic employment 
service model are 
integrated into the 
public employment 
services’ (TE-PES) 
information system 
and are operational, 
as referenced in 
Milestone 79 

1.  By Q2 2023: Entry 
into force of 
amendments to the 
Unemployment 
Security Act 
concerning the 
phasing out of 
additional days of 
unemployment 
security, as 
referenced in 
Milestone 80. 

1.  By Q3 2021: Entry 
into force of the 
initial legal 
framework 
establishing welfare 
areas (wellbeing 
services counties) 
and reforming the 
social and health 
care and rescue 
services, as 
referenced in 
Milestone 133. 
2.  By Q1 2023: Entry 
into force of the 
additional legal 
framework 
completing the 
establishment of 
welfare areas 
(wellbeing services 
counties) and the 
reform of the social 
and health care and 
rescue services. as 
referenced in 
Milestone 134  

3.  By Q2 2023: 

Operationalisation 

EN 

16 

  EN 

Introducing  digital  innovation 
in social and healthcare 
(Existing 
RRP  measure: 
Reference  in  Finland’s  RRP  - 
P4C1I4) 

in  new  energy 

Investments 
technologies 
RRP  measure: 
(Existing 
Reference  in  Finland’s  RRP  - 
P1C1I2) 

solutions 

this 
The  objective  of 
investment  is  to  deliver 
digital 
to 
support  the  development 
of  social  and  healthcare 
services and promote the 
implementation  of 
the 
care guarantee. 

Contribute  to  Finland’s 
goal  to  achieve  carbon 
neutrality  by  2035  by 
stimulating 
the 
introduction of new clean 
technologies  for  energy 
production and use. 

and 

Low-carbon  hydrogen 
carbon capture and utilisation 
(Existing 
RRP  measure: 
Reference  in  Finland’s  RRP  - 
P1C2I1) 

The investment aims to 
promote the development 
of the production and 
storage of clean 
hydrogen on a 
commercial scale. 

of regional welfare 
areas (wellbeing 
services counties) 
with the capacity to 
take responsibility 
for organising 
social, health and 
rescue services as 
referenced in 
Milestone 134 

1.  By Q4 2025: 

Increase of the share 
of population using 
social welfare and 
health care e-
services from 26% 
(2020 baseline) to 
35% as referenced in 
Milestone 139 

1.  By Q4 2021: 

Publication of the 
first call for 
applications for 
investments in new 
energy technologies 
as referenced in 
Milestone 6 

2.  By Q4 2023: Award 
of all grants for 
energy technology 
investments as 
referenced in 
Milestone 7 
3.  By Q2 2026: 

Completion of at 
least 4 supported 
projects as 
referenced in Target 
8 

1.  By Q4 2021: 

Publication of the 
first national call for 
applications for the 
production and 
utilisation of low-
emission hydrogen 
as well as carbon 
dioxide capture and 
utilisation as 
referenced in 
Milestone M16 

2.  By Q4 2025: 
Implementing 
Agreement  
3.  By Q2 2026: 
Ministry has 

Satisfactory fulfilment of 
the 
RRP 
relevant 
milestone 139 

Satisfactory fulfilment of 
RRP 
the 
relevant 
targets 
milestones  and 
6,7 and 8 

Satisfactory fulfilment of 
RRP 
the 
relevant 
targets 
milestones  and 
16, 17, 18, 18bis. 

EN 

17 

  EN 

completed the 
investment as 
referenced in 
Milestone 17 
4.  By Q2 2026: Legal 
agreements signed 
with final 
beneficiaries as 
referenced in Target 
18 

5.  By Q2 2026: 

Transfer of EUR 
127 000 000 to 
Business Finlandas 
referenced in 
Milestone 18bis 

1.  By Q4 2021: 

Publication of the 
first call for 
applications for 
investment projects 
promoting the re-use 
of waste materials 
and side streams. as 
referenced in 
Milestone 22 
2.  By Q4 2023: Award 
of all grants to the 
re-use and recycling 
projects as 
referenced in 
Milestone 23 
3.  By Q2 2026: 

Completion of 10 
supported projects as 
referenced in Target 
24 

1.  By Q2 2022: 

Publication of a call 
for applications for 
leading companies’ 
projects as 
referenced in 
Milestone 100 
2.  By Q4 2023: Award 
of 5 grants for 
leading companies’ 
projects as 
referenced in Target 
101 

3.  By Q4 2025: 90% of 
projects completed 
of leading 
companies as 
referenced in Target 
102 

Satisfactory fulfilment of 
RRP 
relevant 
the 
milestones  and 
targets 
22, 23, 24. 

Satisfactory fulfilment of 
RRP 
relevant 
the 
milestones  and 
targets 
100, 101, and 102. 

Re-use  and  recycling  of  key 
materials  and  industrial  side 
RRP 
(Existing 
stream 
measure: 
in 
Reference 
Finland’s RRP - P1C2I3) 

a 

The  measure  aims  at 
promoting 
circular 
economy that re-uses and 
recycles  industrial  side 
and  waste  streams  and 
other  key  materials  such 
battery  materials, 
as 
plastics, 
textiles, 
packaging,  electrical  and 
equipment, 
electronic 
construction 
and 
demolition materials. 

funding 

RDI 
package 
promoting  the  green  transition 
– Leading companies 
(Existing 
RRP  measure: 
Reference  in  Finland’s  RRP  - 
P3C3I1) 

The  objective  of 
the 
investment  is  to  support 
(via  scheme  managed  by 
Finland) 
Business 
and 
partnerships 
between 
ecosystems 
other 
companies 
organisations 
research 
the 
that 
competitiveness 
of 
business and enhance the 
effectiveness of Research 
& 
Development 
activities. 

strengthen 

and 

EN 

18 

  EN 

infrastructure 

Energy 
investments 
RRP  measure: 
(Existing 
Reference  in  Finland’s  RRP- 
P1C1I1) 

of 

procedures 

Adjustments  to  the  functions 
and 
the 
established  wellbeing  services 
counties  
(Accompanying  RRP  reform 
P4C1R1) 

in 

investment 
projects 

The  objective  of 
the 
investment  is  to  enhance 
framework 
the 
conditions  for  attracting 
investment 
clean 
energy,  with  a  focus  on 
system 
energy 
energy 
integration, 
transport. 
storage  and 
shall 
The 
that 
support 
promote  the  construction 
of  energy  infrastructure 
with the following focus: 
I)  electricity  grids  and 
transmission 
electricity 
capacity; 
II) 
to 
investments 
integrate  energy  systems 
transmit 
and  produce, 
and  utilise  surplus  and 
waste  heat 
in  district 
heating networks; 
low-
transport  of 
III) 
carbon  gases,  including 
hydrogen,  biogas  and 
biomethane. 

These  measures  are  to 
appropriate 
ensure 
services 
provision  of 
safeguarding 
while 
financial 
sound 
management 

Satisfactory fulfilment of 
RRP 
relevant 
the 
milestones  and  targets  3, 
4, and 5. 

Steps  1,  2 
i):Reporting 
authorities 

and  4 
the 

by 

Steps  3  and  4  ii):  Entry 
into  force  of  relevant 
legislative amendments. 

1.  By Q4 2021: 

Publication of the 
first call for 
applications for 
energy infrastructure 
projects as 
referenced in 
Milestone 3 

2.  By Q4 2024: Award 
of all grants for 
energy infrastructure 
investments as 
referenced in 
Milestone 4 
3.  By Q2 2026: 

Completion of 4 
supported at least 
projects as 
referenced in Target 
5] 

1.  By Q2 2024: 
Stakeholder 
consultations 
concerning relevant 
measures allowing 
in particular: i) 
adjustments in 
staffing levels in 
residential care and 
changes to the 
specialisation of 
staff; ii) adjustments 
in customer fees for 
healthcare, and iii) 
clarification of the 
scope and impact 
assessment of the 
Disability Services 
Act; 

2.  By Q4 2025: Setting 
up of plans by each 
wellbeing services 
county, including: i) 
better use of 
premises and service 
network; ii) a wider 
use of centralised 
procurements; iii) an 
enhancement of 
competition in 
public 
procurements. 

EN 

19 

  EN 

 
 
 
3.  By  Q4  2025:  Entry 
of 
legislative 

force 

of 

the 
the 
services 

into 
relevant 
amendments 
concerning 
duties 
wellbeing 
counties, such as 
•  minimum 
levels 
staffing 
residential 
in 
care 
and 
changes  to  the 
specialisation of 
staff 
customer 
for healthcare 

fees 

• 

4.  By Q4 2026: i) 
correction of the 
deficits of wellbeing 
services counties 
accumulated since 
2023, and ii) 
increase of the 
effectiveness of 
services by 
streamlining the 
range of services in 
specialised medical 
care. 

1.  By Q3 2025: Impact 

assessment 
completed. 
2.  By Q3 2025: 
Stakeholders 
consultation 
completed. 
3.  By Q4 2025: 

Legislation voted  

1.  By Q3 2025: Impact 

assessment 
completed. 
2.  By Q3 2025: 
Stakeholders 
consultation 
completed . 
3.  By Q4 2025: 

Legislation voted 

Step  1  and  2:  Reporting 
by the authorities 

the 

Step  3:  Entry  into  force 
legislation 
of 
clarifying  the  provision 
of social assistance.  

Step  1  and  2:  Reporting 
by the authorities 

the 

Step  3:  Entry  into  force 
legislation 
of 
establishing 
the  single 
social benefit 

is 
incentives 

to 
The  measure 
improve 
to 
work  by  clarifying  the 
receive 
to 
conditions 
and 
assistance 
social 
adjust  its  size  based  on 
objective  circumstances 
regarding the recipient of 
social assistance. 

is 

The  measure 
to 
introduce a system based 
on a single social benefit 
as  a  way  to  clarify  and 
simplify  the  system  of 
social benefits and better 
identify 
persons 
qualifying for support. 

Comprehensive  
reform of social  
assistance (new measure) 

Comprehensive  
reform of  
social security  
and the single  
benefit model (new measure) 

Done at Strasbourg, 

EN 

For the Council 
The President 

20 

  EN