Finland Country Risk Report - Business Monitor International - Industry Reports

Finland Country Risk Report

Finland Country Risk Report - Business Monitor International - Industry Reports
Finland Country Risk Report
Published Jul 23, 2015
29 pages — Published Jul 23, 2015
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Although support for nationalist parties in Finland has fallen in recent years, typified by the decline in backing for the euro- sceptic, right-wing Finns party, a stagnating economy could see nationalist forces resurge. Finland has a largely homogenous population, with the main ethnic minorities being Swedes or Russians. However, there is significant public resentment to- wards Finland s role in bailing out indebted eurozone partners, particularly Greece. If we see Finland forced to participate in another bailout, we would expect to see support for the Finns party rise significantly, as was the case in the April -- ---- parliamentary election fol- lowing the bailout of Portugal via the European Financial Stabil- ity Facility just -- days previously. A position of prominence for the Finns would risk not only souring the relationship with other eurozone states, but perhaps even a Finnish withdrawal from the currency union altogether. ...

...The composition of the new Finnish government is the best possible outcome from a structural reform perspective. Nonetheless, implementing the reforms required to reduce unit labour costs will be challenging, and success is far from assured at this juncture. ...The government headed by Centre party leader Juha Sipila is a coalition comprising the centrist Centre party, the far-right Finns party and the centre- right National Coalition party. While the incorporation of the Finns party into government poses some challenges on the foreign policy front (National Coalition party is strongly pro EU, while the Finns are strong euroscep- tics), the government is the most positive outcome for Finland from a fiscal/economic stability perspective . As we previously noted, this combination in government is most likely to push for structural reform measures while maintaining a hawkish stance towards public finances (see Election Preview: Finns Party Could Join Coalition , April --). ...The previous government headed by Alexander Stubb embarked on several ill-fated healthcare and social reforms, and his failure to push through the structural reforms ultimately - Business Monitor International Ltd finland Q- ---- taBle: Political oVerVieW System of Government Parliamentary Democracy, Universal Suffrage; ----seat parliament (members elected by popular vote based on proportional representation and serve four-year terms).

...Source: BMI fatally undermined the disastrous six-party coalition. The new government represents the best possible chance to implement these reforms, given that with only three parties it is a relatively small coalition by Finnish standards and all coalition partners are broadly in agreement over the scope of reforms needed to be implemented. However, there is still a reasonable possibility that the government will fail to reach an agreement with the unions. The growing challenges facing Finland and the failure of the previous government to reform were highlighted by Standard & Poor s after it stripped Finland of its AAA rating in ----, while Fitch and Moody s both have Finland s AAA rating on a negative outlook, although Moody s noted that if the govern- ment is able to push through the planned fiscal and structural reforms, it would consider moving Finland s outlook back to stable. The threat of a further downgrade should help to keep reform momentum steady over the coming quarters, despite the considerable challenges ahead. ...

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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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Business Monitor International - Industry Reports. "Finland Country Risk Report" Jul 23, 2015. Alacra Store. Oct 27, 2016. <>
Business Monitor International - Industry Reports. (2015). Finland Country Risk Report Jul 23, 2015. New York, NY: Alacra Store. Retrieved Oct 27, 2016 from <>
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