STTK rejects additional budget cuts

The government should postpone budget cutbacks rather than plan additional cuts, the Finnish Confederation of Professionals STTK concluded on Wednesday. The same logic should be applied to taxes. Tax rises should be postponed to a later date. Budget cuts and tax rises will only have a negative impact on domestic demand and thus weaken employment, STTK warns.
 
As economic growth seems to be slowing down it is important to support domestic employment and growth, STTK argues. It says that European debt crisis stresses good management of the public economy.
 
- An increase in Finland’s state or national debt must be avoided.
 
STTK wants the government to create a long-term programme to stabilize the public sector economy and to promote growth and employment. The programme should consist of an extension of working careers at all levels and a labour market solution that would increase stability and predictability.
 
- Now it is most important to defend national interests. Therefore the government and labour market organizations must cooperate closely in coordinating economic and labour market solutions.