Finland's government revealed the details of a "difficult but necessary" austerity budget earlier this week, as the country grapples with escalating state debt, sluggish economic growth and a challenging global environment.
All Points North combs through the government's plans and finds that building the blocks of economic recovery represents a precarious balancing act.
"These measures might jeopardise growth because most of the spending cuts and tax increases are taking effect next year, so that might cause the recession to continue," Patrizio Lainà, chief economist at the trade union confederation STTK, told the show.
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While the spending cuts and tax rises grabbed most of the headlines, there was also an interesting political sideshow as voters — and opposition parties — reacted to the government's decisions.
Teivo Teivainen, professor of world politics at the University of Helsinki, noted Finland's scissors-wielding Finance Minister may be channeling her inner 'Iron Lady'.
"It seems [Finns Party leader and Finance Minister] Riikka Purra has been able to play a hardliner like a Finnish Margaret Thatcher kind of figure, 'I cut hard and it may hurt but it's necessary'," Teivainen observed.
With Finland firmly in an age of austerity, personal finance expert Michael Lutzeier offered APN listeners his advice on how to weather the fiscal storm.
"I think it all starts with knowing what you spend, and then set targets, make a budget, and leave some room for saving," Lutzeier said.
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This week's show was presented by Ronan Browne and Zena Iovino. The sound engineer was Mikko Kymäläinen.
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