SDP will not join government that raises retirement age

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Social Democratic Party chairwoman Jutta Urpilainen declared on Monday that there are “three commitments” that the party considers deal-breakers for its participation in the next Finnish government.
      “If the SDP is in the next government we will increase funding for employment”, Urpilainen said at a meeting of the party’s Parliamentary group in Tampere. Another condition is raising the tax on capital gains, saying that it is a “matter of fairness”.
      Third, Urpilainen says that the SDP will commit to not cutting pension benefits.
     
After her speech Urpilainen added that not cutting pensions also means that the retirement age will not be raised if the SDP is in the government.
      Does this mean that the SDP will not join a government that raises the retirement age beyond 63?
      “It can be interpreted that way”, Urpilainen answered.
     
National Coalition Party deputy chairman Sampsa Kataja expresses wonder about the SDP’s attitude: “The fact that all means are ruled out before they are discussed together - that is quite a bizarre bit of policymaking.”
      “As I understand it, no Finnish party and no participant in societal debate has proposed cutting pensions. The SDP is debating with itself”, Kataja says.
      According to Kataja, the National Coalition Party supports extending working careers, for which cutting pensions would not be a solution.
      Raising the retirement age is something that Kataja will not rule out. He feels that all means should be kept available.
     
A threshold issue set for the next government by the National Coalition Party is that it must not increase taxation of labour. Kataja emphasises that the party would not enter into government talks with another party that does not understand economic realities.
      “Before labour market organisations and pension insurers, pension companies, or working groups take a stand on retirement issues, one of the large parties takes the line that they do not want to talk about the whole matter, then I have to ask if they understand or recognise economic reality.”
     
Centre Party deputy chairman Timo Kaunisto finds the SDP’s statement “rather extraordinary” and “strange”.
      “The opposition has also spoken about lengthening working careers from the beginning, middle and end. No solutions should be ruled out. Let’s listen to the labour market groups”, he said.
      Last week the Confederation of Finnish Industry (EK) proposed raising the retirement age to 70.
      On Sunday Prime Minister Mari Kiviniemi (Centre) hoped that a decision on extending working careers from the end could be made already before the elections.


Previously in HS International Edition:
  SDP not sure of government berth even if party finishes second in 2011 election (31.5.2010)
  National Coalition Party would reject SDP as possible government partner (17.5.2010)
  OECD urges Finland to raise retirement age to 65 (3.3.2010)

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