Finlandia Afflicted by Economic Crisis Could Lead to Recession Finland is suffering from an economic crisis that could lead to a recession. Finland, the happiest country in the world, has seen its happiness decrease over the past few years. Another cause of moral dehydration was the economic crisis, which led to the creation of a strict and rigid budget. Local elections took place in April, and now the main issue is how to cover healthcare costs, pensions, and social benefits. Finland suffered a severe blow after the Russian-Ukrainian war with significant increases in energy and security costs.

The economic weakness is also due to the fact that Finland became a member of NATO just one year after Russia's invasion of Crimea, thus increasing the need for military protection. The Finnish government has invested heavily in its armed forces, often at the expense of saving on energy dependencies. Helsinki had to pay much more than it did before, especially for Russian natural gas imports. The Finns have initiated an enormous debt, exceeding their ability to pay, mainly due to aging population growth and slow economic growth. Data provided by the Finnish National Statistical Institute confirms that the country's debt reached 90.3% of GDP.

In June, a figure that had already risen to around 65% before the pandemic. Until now, Finland has refused to follow EU norms, which require member states to have a debt below 3% of GDP, but the Orpo government promised to reduce the deficit to 2% of GDP during its term. Reducing the debt is also an obligation for the social democratic parties, but Orpo stated it could achieve this goal without increasing taxes. Local elections were won by the Center Party, promising significant economic reforms if they win again in the next battle. The Orpo policies include reducing healthcare and pension costs with the elimination of social benefits as necessary, while the social democrats will plan a combination of spending cuts and tax increases.

Kivisto, a Finnsia Bank consultant, has highlighted that 'current estimates range from €8 to €11 billion', but he warned: 'It is still unclear how to address healthcare and pensions costs'. Finland is going through a difficult period, but there is no doubt that human happiness depends on many factors, including climate, economic security, and quality of life.