Minister of Finance Jyrki Katainen (Nat. Coalition Party) sharply criticised views held by the European Commission on economic stimulus measures enacted by the Finnish government.
Last week the Commission criticised Finland for putting 80 per cent of stimulus funds into tax cuts.
“This is not the case in any kind of mathematics”, Katainen said on Tuesday at a press conference in Brussels after a meeting of EU finance ministers.
Finland is using 3.2 per cent of its GDP - about six billion euros - on stimulus. Katainen maintains that there is no way that tax cuts could account for 80 per cent of this, which would be EUR 4-5 billion. He says that the total is well below three billion.
Katainen also criticises the Commission for making contradictory claims.
On the one hand, the Commission praises the rise in consumer confidence and increasing buying power.
On the other hand, EU civil servants have warned that exports alone will not be enough, and that Finland should put more efforts into encouraging domestic demand.
“I doubt that this means a call for massive pay hikes”, Katainen commented.
The Ministry of Finance is set to correct the figures put out by the Commission, as well as its views on Finnish stimulus.
