Finland to Set Up Debt Brake to Mend Ailing Public Finances

Finland will introduce a parliamentary debt brake, aiming to fix the worsening public finances of the northernmost euro area member.

Under the rule that’s due to be implemented from 2027, the political parties will agree before each general election on the maximum level of public deficit allowed for the upcoming government term, the groups said in news event in Helsinki Tuesday. The incoming government will then decide on the specific measures to reduce borrowing.