Finland, the World's Happiest Nation, Faces a Glum Winter
Finland, traditionally ranked as the world's happiest nation, is facing economic hardship due to high debt, a sluggish economy, and increased defense spending following its NATO accession. The government is implementing strict austerity measures to meet EU deficit requirements ahead of upcoming elections.
Why it matters
The economic strain on a top-tier welfare state highlights the broader fiscal challenges facing European nations balancing security costs and social spending.
TEMPO.CO, Jakarta - There's an uneasy mood in Finland, the country that's ranked the world's happiest for nine consecutive years. A colder-than-usual winter is on the way and so is the toughest austerity budget in years. With an election due in April, the argument is no longer how much to cut, but which services, benefits and pensions will face the biggest cuts.Finland's debt and deficit levels are in their worst state since the 1990s, when a banking crash and the collapse of the Soviet Union — a key export partner — pushed the Nordic nation into its own Great Depression. Finland's debt ratio climbed sharply since the COVID-19 pandemicLast month, Finland's national statistical institution confirmed that the national debt had reached 90.3 percent of gross domestic product (GDP) in the second quarter.
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