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"Worst is behind us" as PM Orpo predicts economic growth

Finland's Prime Minister discussed economic challenges, social media disinformation and the imminent launch of an anti-racism campaign during an interview with Yle at his official Kesäranta residence in Helsinki.

Prime Minister Petteri Orpo.
Prime Minister Petteri Orpo was interviewed by Yle on Tuesday afternoon. Image: Henrietta Hassinen / Yle
Yle News

Prime Minister Petteri Orpo (NCP) told Yle he is cautiously optimistic about the Finnish economy's potential for growth over the coming 12 months.

During an interview at the PM's official Kesäranta residence on Tuesday afternoon, Orpo said a lot will hinge on the outcome of the government's budget framework negotiations — due to be held in the first week of September.

"I believe that the worst is now behind us. And if you don't believe me, then quite a few economic forecasters say that the economy will start growing next year at the latest," Orpo said.

However, despite his upbeat outlook, he added that the government may make adjustments to its economic and austerity policies if the current measures do not have the desired effect.

"I hope and believe that we have done enough. If more measures are needed, they will not be anywhere near the scale that was taken in the government programme negotiations or during the government discussion on spending limits in the spring," he said, referring to negotiations he said at the time were "extremely difficult".

The government will await a budget proposal, set to be drafted by the Ministry of Finance this week, before it begins discussing the level of cuts and expenditure for next year.

"Now that this basic work is well advanced, the next step is that we start building the steps needed for future growth, so that Finland will generate economic growth, jobs and livelihoods for people and that we will get rid of this endless cycle of adjustments and savings," he said.

However, one significant challenge will be the spiralling budget deficits reported this week by Finland's regional welfare authorities. Based on figures provided to Yle by the Ministry of Finance on Monday, the authorities — also known as wellbeing services counties — have seen their losses balloon from an estimated 800 million euros this year to 1.25 billion euros.

"We have been giving and we will give billions of euros to the wellbeing services counties every year, but at the same time we have an obligation to encourage the services counties to do things better, more efficiently and more productively, so that we can also make ends meet," Orpo said.

Orpo: Yle must also face cuts

A parliamentary working group tasked with deciding on the extent of funding cuts for the Finnish Broadcasting Company (Yle) failed to reach an agreement before the parliament went on summer recess in July.

Orpo said he found it disappointing that a consensus could not be found before the summer break, but noted that the working group will continue its negotiations in the autumn.

"It is still quite clear to me that when cuts are made in all sections of society, Yle must also participate," Orpo said.

Finns Party backs anti-racism campaign, PM says

Yle reported earlier on Tuesday that Orpo's government is set to launch an extensive anti-racism campaign later this month, aimed at encouraging businesses, organisations and communities to tackle racism and discrimination in Finnish society.

In his interview with Yle, Orpo acknowledged that racism is a problem in Finnish society, but he said that all of the four parties within his government — including the Finns Party — are committed to tackling it.

The campaign has its roots in the wave of racism and far-right scandals that engulfed Orpo's own government during its first few weeks in office last summer.

Need for media literacy skills

Orpo also emphasised the importance of critical thinking and media literacy in the current global environment, adding that he is concerned about how easily fake news and rumours spread on social media.

He cited the situation in the UK, where misinformation circulating on social media about the suspect in the stabbing of 11 children and two adults in the town of Southport last Monday has led to a week of rioting in several cities across the country.

"You have to understand that someone is using it [social media] to cause confusion and mayhem, confrontation. We must always remember that this is the operating environment today," he said.

The Prime Minister's comments on the UK riots differ from those made by some of his coalition colleagues within the Finns Party, with party leader and Finance Minister Riikka Purra linking the knife attack to the issue of second-generation immigration.

"There are problems with integration in different areas, and if you don't integrate, if you don't find a place in society, then it often leads to exclusion or other difficulties, but I wouldn't jump to such a conclusion in this case," Orpo said.

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