DEBT-FILLED BUDGET: The government has presented the proposal for its first budget. The process has been led by Finance Minister Riikka Purra, this being her first major task that doesn’t involve navigating the racism scandal or internal government squabbling
The increase in government debt is indeed a bit of egg on the face of PM Orpo and his government, but then again there was quite a bit of egg on it already.
With interest rates having gone up, the cost of servicing government debt rises. In the past year, the yield on Finland's 10-year government debt has gone from just below 2% to just above 3% now. So that's an over 1% additional cost on the debt (quick napkin calculation).
By highlighting the 10 billion euros in debt, you're right on the hot subject, which (alongside the racism issue) will be one of the main themes throughout this government's tenure.
The increase in government debt is indeed a bit of egg on the face of PM Orpo and his government, but then again there was quite a bit of egg on it already.
With interest rates having gone up, the cost of servicing government debt rises. In the past year, the yield on Finland's 10-year government debt has gone from just below 2% to just above 3% now. So that's an over 1% additional cost on the debt (quick napkin calculation).
By highlighting the 10 billion euros in debt, you're right on the hot subject, which (alongside the racism issue) will be one of the main themes throughout this government's tenure.