As the pandemic continues to affect economies around the world, joint debt is becoming an increasingly important topic for discussion at the Market Council. The EU’s decision to implement a stimulus package funded by joint debt has led to increased pressure for a new package, with Ukraine also receiving support through this method. While views on taking on joint debt vary widely among Finns, with the right opposing it and the left supporting it, Antti Ronkainen of the University of Helsinki notes that Finland has a long history of fearing debt that is deeply rooted in its national identity.
The Confederation of Finnish Business has proposed a new fund for digital, green, and defense projects, preferring a fund financed by collective debt over national state subsidies. Timo Vuori, director responsible for trade policy at EK, argues that if normal market conditions cannot be restored without state subsidies, then joint actions at the EU level must be considered. He emphasizes the need for EU countries to work together to compete with global economic powers like the United States and China.
Vuori calls for a reevaluation of the distribution of funds in the EU budget to prioritize renewal and long-term planning. He sees the EU as a collective entity similar to a housing association where members must contribute to meet growing needs and expenses. Vuori stresses the importance of joint action and financial cooperation in addressing new challenges and ensuring future viability.
Finally, he urges Finland to play a proactive role in finding solutions and embracing collective responsibility as they navigate these times together as part of their commitment towards building a better future for themselves and their fellow Europeans.
