Fiscal policy and priorities in a time of uncertainty
Financial resilience and Nordic competitiveness topped the agenda at today’s meeting of finance and economy ministers, hosted by the joint Finnish and Åland Presidency of the Nordic Council of Ministers.
“The global economy is marked by increasing uncertainty, and the Nordic Region is facing a new security policy reality that will require significant national commitments to defence and security. It is crucial that we have a responsible fiscal approach to these challenges, one which paves the way for enhanced Nordic competitiveness,” says Riikka Purra, Finland’s Minister of Finance.
Resilient financial markets are vital for the Nordic Region
The Nordic financial markets are among the most integrated in the world. Guaranteeing that the financial markets and payment methods are stable and work well – especially in times of crisis – is crucial for the overall resilience of the Nordic economies and societies. The ministers discussed how the changing security situation is challenging the stability of the Nordic financial markets, for example, due to hybrid threats. They agreed that the situation requires both national and Nordic approaches to boost financial preparedness in the region and discussed tangible measures that can be taken.
“The Nordic countries are affected by the economic and geopolitical circumstances in the world around us. We have different prerequisites and starting points, but it is in all of our interests that we make sure that the Nordic economies are strong and competitive, and that we have robust financial markets – especially in times of crisis,” says Mats Perämaa, Åland’s Minister of Finance.
Geopolitical uncertainty calls for new fiscal priorities
Rising economic uncertainty, geopolitical changes and a new security situation are imposing new demands on fiscal policy, particularly due to significantly higher spending on defence and security. The ministers agreed that fiscal policy plays an important role in ensuring that improvements to defence and security in the Nordic Region are effective and sustainable. They also highlighted the importance of fiscal policy initiatives and reforms for improving the Nordic countries’ long-term growth potential and international competitiveness.
