Finns Told Pay Cuts Only Way to Rescue Economy From Failure

Finnish Prime Minister Juha Sipila wants Finnish labor to cost 5 percent less by 2019, a proposal unions already rejected in May.

Photographer: Henrik Kettunen/Bloomberg
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One of Germany’s staunchest allies in backing euro-zone austerity is about to feel some of the pain the policy brings with it.

Finnish Prime Minister Juha Sipila will this month battle unions to reduce the cost of labor. Without the measure, he says Finland will need a 1.5 billion euro ($1.6 billion) austerity package to meet budget goals.