Call for sustainable fiscal policy and stronger growth
The finance ministers met in Copenhagen on 1 November 2011 and discussed, from a Nordic perspective, the economic and political challenges threatening stability in the EU.
- Photographer
- Johannes Jansson/norden.org
The lack of an upswing in the world economy has slowed down the expected return to growth, as well as the recovery of Nordic public finances. Problems in the Eurozone and in the USA have a direct impact on Nordic economic recovery.
"The Nordic economies may be strong but the international crisis proves the need for credible fiscal policies and for assuming political responsibility. Stabilising the global economy will require stronger international leadership than ever before. Initiatives that further stimulate growth, create jobs and improve prosperity in the Nordic Region are also needed," the ministers point out in a joint statement.
On average, Nordic GDP is expected to grow faster than in the Eurozone in 2011-2012. Unemployment in the Nordic Region fell in 2011 and is expected to be lower than in the Eurozone and the United States in 2012-2013. (See table)
The Danish Presidency of the EU during the first six months of 2012 will play a key role in the recovery process. The meeting discussed priorities for the Presidency as well as the scope for national action when implementing the EU's new international regulatory framework for banks, the Basel III Accord
Combating tax evasion
Since 2006, the Nordic Council of Ministers has negotiated 33 information-exchange agreements designed to help put an end to tax evasion, a record that puts the Region at the forefront of international efforts to deal with the problem.
The agreements allow the Nordic tax authorities to request information from the jurisdictions concerned. The impact has been noticeable and more people are now paying taxes and surtaxes. The number of Nordic citizens voluntarily correcting their tax returns has also risen, and is expected to continue to do so. There are also indications of indirect effects, e.g. the authorities report that the net inflow of payments from certain countries has increased in recent years. The preventative effect also means that fewer people are expected to take the risk of not declaring income in the future. More similar agreements are expected to be signed in the future.
For further information, please contact:
Ola Yndeheim, Senior Adviser, Finance, Nordic Council of Ministers
oy@norden.org
Tel.: +45 21 71 71 16
|
Key Data |
|
|
|
|
|
|
|
-09 |
-10 |
-11 |
-12 |
-13 |
|
|
|
|
|
|
|
|
GDP |
Annual change (%) |
||||
|
Denmark |
-5.2 |
1.7 |
1.1 |
1.1 |
- |
|
Finland |
-8.2 |
3.6 |
3.5 |
1.8 |
2.3 |
|
Iceland |
-6.7 |
-4.0 |
2.5 |
3.1 |
2.8 |
|
Norway (mainland) |
-1.8 |
2.1 |
2.8 |
3.1 |
- |
|
Sweden |
-5.3 |
5.7 |
4.1 |
1.3 |
3.5 |
|
|
|
|
|
|
|
|
Inflation |
Annual change (%) |
||||
|
Denmark |
1.3 |
2.3 |
2.8 |
1.8 |
- |
|
Finland |
0.0 |
1.2 |
3.5 |
3.3 |
2.1 |
|
Iceland |
12.0 |
5.4 |
4.0 |
3.7 |
2.6 |
|
Norway |
2.1 |
2.5 |
1.5 |
1.6 |
- |
|
Sweden |
-0.5 |
1.2 |
3.0 |
1.2 |
1.8 |
|
|
|
|
|
|
|
|
Unemployment |
% of workforce |
||||
|
Denmark |
3.4 |
4.0 |
3.8 |
3.7 |
- |
|
Finland |
8.2 |
8.4 |
7.9 |
7.6 |
7.4 |
|
Iceland |
8.0 |
8.1 |
7.1 |
5.7 |
4.3 |
|
Norway |
3.2 |
3.6 |
3.3 |
3.3 |
- |
|
Sweden |
8.3 |
8.4 |
7.5 |
7.8 |
7.7 |
|
|
|
|
|
|
|
|
Budget balance |
% of GDP |
||||
|
Denmark |
- |
- |
- |
- |
- |
|
Finland |
-2.7 |
-2.8 |
-1.1 |
-0.8 |
-0.6 |
|
Iceland |
- |
- |
- |
- |
- |
|
Norway |
10.7 |
10.8 |
13.6 |
11.5 |
- |
|
Sweden |
-0.9 |
-0.2 |
0.1 |
0.0 |
0.7 |
|
|
|
|
|
|
|
|
Current account |
% of GDP |
||||
|
Denmark |
3.6 |
5.2 |
4.7 |
4.1 |
- |
|
Finland |
2.1 |
1.9 |
0.7 |
1.2 |
1.1 |
|
Iceland |
-11.7 |
-10.2 |
2.2 |
2.8 |
-1.0 |
|
Norway |
11.8 |
12.4 |
14.0 |
11.5 |
- |
|
Sweden |
7.0 |
6.3 |
9.2 |
6.2 |
5.8 |
Source: The Nordic ministries of finance.
