Extensive reforms of the Finnish social and health care system, known colloquially as sote, cost taxpayers billions of euros. Eero Laesterä, Director of Finnish Consulting Group (FCG). The company is owned by the Association of Finnish Municipalities (AFLRA).
The implemented reforms will change the organization and provision of social and health care services in Finland. Responsibility for the services will be transferred from the current 293 municipalities in the country to 21 regional authorities and the City of Helsinki by the beginning of 2023.
Laesterä said that in the first eight years after the implementation of the reforms, additional costs of about 6.4 billion euros will be incurred.
"You have to believe the numbers once the officials have calculated," Laester said.
According to his calculations, this amount of EUR 6.4 billion corresponds to a five percentage point increase in the municipal tax.
At the same time, according to the Finnish Taxpayers’ Association, a tax increase of five percentage points would cost the average income recipient EUR 1,800 per year, while it would cost taxpayers about EUR 3,400 per year.
Equitable services?
Jukka Lindberg, which is leading the military reform work in the Kanta-Häme region and has been working on military issues since 2006, agreed that the additional costs would eventually be collected from taxpayers.
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He said reforms could save money, but that doesn’t seem to be a priority for policymakers.
"The ideas of the current government seem to be related to securing services, not costs. Finding savings in the process would require work and political courage, which is a rather expensive resource," Lindberg said.
One of the key promises for social reforms has been that social and health services are the same, equally high, throughout the country.
"I can’t believe anyone seriously believes in this promise. Maybe a minimum level of service is available everywhere, though [total] equality cannot be achieved," FCG’s Laester said.
25.9: Added consulting firm, clarified title.
Source: The Nordic Page