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• Björn Wahlroos: SWEDEN WILL STAY AFLOAT, FINLAND WILL SINK
Finland should follow the example set by Sweden, where financial growth has been promoted through many reforms, says Björn Wahlroos, Board Chairman of Nordea and Sampo. He finds that Finland will sink if nothing is done to prevent it.
”I believe that Finland will also start to discontinue incentive models that have a negative impact on employment and entrepreneurship," says Wahlroos in an interview of Prima, published on Thursday, 8 September 2011.
"Finland must also be capable of paying for valuable things, such as basic social welfare, public healthcare and education. This requires successful companies and growth."
Economic growth in Sweden was slower than in Finland for 30 years. A change took place when the government led by Göran Persson started to discontinue the negative incentive models created in the welfare state, which slowed down the development of employment and entrepreneurship.
Wahlroos finds that Finns have become similar to Swedes 15 years ago, a people that complains and mumbles about everything.
Finland also has a hope for a better day because, according to Wahlroos, we have followed the example set by Sweden for the last 50 years.
"Our social welfare, income transfer mechanisms, labour market and institutes have mainly been established on the basis of the example set by Sweden. Sweden has been 10–20 years ahead of us in positive and negative things. When Sweden started rising to the surface in the late 1990s, we continued, and still continue to sink."
"The Swedish government finds that a permanent improvement of employment rates requires reforms that affect labour market participation and the number of work hours performed. The results are good," says Juhana Vartiainen, Head of Macroeconomic Research at the National Institute of Economic Research.
The Swedish government has promoted willingness to work and opportunities through changes related to income deduction, unemployment insurance, stricter sickness insurance policies, renovation deductions, discounted social welfare fees, labour market policy reforms and changes related to income taxation. It is also important to note that the daily unemployment allowance limit has not been changed since 2006.
• Ole Johansson, Chairman of the Confederation of Finnish Industries EK: TAX CUTS TO ADDRESS THE ECONOMIC CRISIS
“We need to face the facts and stop having any dreams that Finland's sustainability deficit would resolve itself," says Ole Johansson, Chairman of the Confederation of Finnish Industries EK. In EK's Prima magazine, Johansson says that politicians should immediately make decisions to rescue the Finnish economy.
The Finnish government cannot resolve the issues of the global economy, but Finnish politicians have a key role in rescuing the national economy of Finland.
The business sector is particularly concerned over the high raise demands by employees. Raises decrease the level of competitiveness and they would be a poor match to the grim financial situation where demand decreases in many sectors.
"The government should support a moderate salary policy by cutting income tax rates," says Johansson.
Income tax cuts should also encourage employee organisations to seek moderate contracts. "This would increase employment rates, which is important with respect to Finland's sustainability deficit," says Johansson.
”Growth has slowed, and the government platform should be immediately revised in regard to corporate taxation, for example. In addition to companies, rapid measures also build consumer confidence, which is directly or indirectly important to all companies," says Harri Kerminen, Chairman of the Chemical Industry Federation of Finland, and CEO of Kemira.
Sulphur dioxide restrictions planned for sea traffic are the biggest individual question related to logistics. The government has promised to work actively to prevent the restrictions from causing unreasonable costs to export companies.
”In this billion-class matter, the clock is five minutes to midnight," says Kari Jordan, Chairman of the Finnish Forest Industries Federation, and President and CEO of Metsäliitto Group.
• Mikko Pukkinen, Director General of the Confederation of Finnish Industries (EK): GROWTH IS OF THE ESSENCE
Director General Mikko Pukkinen says that EK is ready to negotiate the combining of economic and labour market policy. This is based on ensuring predictability, growth, competitiveness, and purchasing power as well as investments and employment.
The labour market parties will continue the discussions to reach a mutual consensus over future labour market policies. During the early autumn, the parties will investigate the preconditions for finding new methods to combine financial and labour market policy.
However, Pukkinen finds that old-fashioned income policy solutions are from the era of a regulated economy, not today. Such solutions will not ensure moderate salaries, labour peace and not even profitability.
"We have notified the government at a general level that labour costs need to be restrained. The worst scenario would be that we also cause salary inflation by our own action in addition to all these international problems," says Pukkinen. in EK's Prima magazine
• Antti Zitting of the EK Delegation for Entrepreneurs: THERE ARE NO JOBS IF THERE IS NO INDUSTRY
Finland urgently needs new production-related investments. Outdated capacity must be replaced to keep production up to date, diverse and most of all, internationally competitive, says Antti Zitting, Chairman of the EK Delegation for Entrepreneurs, and CEO of Sacotec Oy, in the editorial of Prima.
According to an investment survey conducted by EK and published in June, corporate investment in 2010 was at the same level as it was in 2009. The growth was only 1.5%. During 2011, the uncertainty in the global economy has further discouraged investments.
Now it is time to encourage private investors to invest in Finland and growth. We need quick and effective action to increase the amount of fixed investments in Finland.
Finland, not Greece, makes the decisions on double depreciation regulations of investments and ensuring export tools that bring more money to society. It is important to immediately, and not sometime next year, launch Finnvera's credit-format export funding, which was discontinued in June 2011.
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