Sunlight illuminated the facade of the Government Palace in Helsinki on 16 January 2025. Officials and politicians in the capital city have voiced their dismay at a government proposal to cut social and health care funding allocated for the city, saying it goes against the stated objective of encouraging well-being services counties to look after their finances. The 21 counties reported a combined deficit of 1.2 billion euros in 2024, with Helsinki the only to post a surplus. (Teemu Salonen – Lehtikuva)
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MAYORAL HOPEFULS in Helsinki have expressed their shock and dismay with a government proposal to slash social and health care funding for the capital city.
Helsingin Sanomat on Wednesday revealed that the central government is considering making a one-time cut of 35 million euros in its funding for the city in 2026–2027, justifying the proposal with the surplus reported by the city in both 2023 and 2024.
Daniel Sazonov, the mayoral candidate of the National Coalition, stated to the newspaper that he was stunned that the proposal was put forward given that it contradicts the stated desire of the government to promote the cost-efficient organisation of social and health care services in Finland.
Helsinki is the only municipality that is responsible for organising its social, health care and rescue services. Elsewhere in Finland, the responsibility was transferred to the 21 well-being services counties established as part of the sweeping social and health care reform that came into effect on 1 January 2023.
The finances of the counties has been a thorn in the side of the government ever since, with newly published data showing the counties ran a total deficit of 1.2 billion euros in 2024, a slight improvement from the previous year’s deficit of 1.4 billion euros. The City of Helsinki was the only bright spot last year, with its surplus of almost 30 million euros.
The central government had to decide on additional cost-saving measures in its framework session last spring largely because of the widening deficits of well-being services counties.
“If a proposal like this moved forward, it’d destroy incentives for counties to balance their economies. It’d send the very odd message that instead of responsible management of finances, you’re encouraging budget deficits. It’s truly irresponsible for the county minister to present for comments a proposal like this that singles out one well-being services county because its finances are in balance,” stated Sazonov.
“Whatever your party affiliation, a proposal like this is impossible and irresponsible,” he reiterated. “The government has consistently sent the message that counties must take care of their finances.”
Both Sazonov and Minister of Local Government Anna-Kaisa Ikonen represent the National Coalition. Ikonen in her proposal also laid out other alternatives, including ones where the desired funds would be drawn more evenly from well-being services counties.
Sazonov’s dismay was shared by his two biggest challengers in the mayoral race, Atte Harjanne of the Green League and Eveliina Heinäluoma of the Social Democratic Party.
Harjanne in a press release described the idea as “foolish” and evidence of “open hostility” toward Helsinki.
“You talk about encouraging [counties to manage their finances], and then you punish a county for balancing its finances. It is hard to see any other rationale for this than open hostility toward Helsinki. The Finns Party and Christian Democrats’ resentment for the capital city is not particularly surprising, but why is the National Coalition doing something like this?”
He also admitted that the social and health care system created by the previous government, which included the Greens, has undeniably some flaws that necessitate adjustments, including – he believes – granting counties the right to levy taxes.
“Numerous economists are also supportive of it, but the National Coalition and its tax populism cannot do it.”
Not one of the leaders of the four largest parliamentary parties voiced their support for the idea of allowing well-being services counties to levy taxes to finance their operations in a county and municipal election debate held on Tuesday by Ilta-Sanomat.
Heinäluoma, the mayoral candidate of the Social Democrats, said Prime Minister Petteri Orpo (NCP) and Minister of Finance Riikka Purra’s (PS) desire to reward Helsinki for successfully balancing its social and health care budget by sending it “an invoice” for another 35 million euros is “unbelievable”.
She also criticised the outgoing mayor, Juhana Vartiainen (NCP), for failing to address the issue at a meeting of the Helsinki City Council on Wednesday.
“Mayor Vartiainen did not make a statement or tell what he thinks of this cut. We need the kind of mayor who stands up for Helsinkians,” Heinäluoma stated to Helsingin Sanomat on Wednesday.
Officials at the City of Helsinki have similarly drawn attention to the tension between the proposal and the stated principle of encouraging well-being services counties to manage their finances responsibly.
“Helsinki’s well-balanced economic situation is resulting in us facing cuts. That’s really wrong given that this system should specifically encourage well-balanced finances,” Juha Jolkkonen, the director of social, health care and rescue services at the City of Helsinki, told Helsingin Sanomat on Wednesday.
Jolkkonen acknowledged that the government is right in estimating that a funding cut of 35 million euros – even though it is a considerable sum also for the capital – over a two-year period would not endanger the organisation of services in Helsinki.
It is rather a question of principle and sending the right message.
“Incentives should contrastively be increased, rather than undertake this kind of balancing that punishes those who somehow manage to make it,” he said. “This is the first step toward the government, when faced with a funding shortage, not taking evenly from all well-being services counties but looking at who’s doing the best and taking from it.”
“It leads to a cycle where it isn’t worthwhile to have a balanced economy. It’d be a fateful spiral.”
“We aren’t talking about additional money given to Helsinki, but about funding that belongs to us under the funding scheme. Besides, Helsinki’s funding is the second lowest per capita out of all the counties. We aren’t swimming in money, but we’re strictly managing our finances.”
Aleksi Teivainen – HT
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Source: www.helsinkitimes.fi
