https://sputnikglobe.com/20221221/finland-dangles-massive-power-aid-package-as-energy-crisis-worsens-recession-looms-1105656782.html
Finland Dangles Massive Power Aid Package As Energy Crisis Worsens, Recession Looms
Finland Dangles Massive Power Aid Package As Energy Crisis Worsens, Recession Looms
Sputnik International
As Finns are saddled with huge energy bills and galloping inflation as the economic outlook becomes increasingly dire, the government pledged to step in and... 21.12.2022, Sputnik International
2022-12-21T12:33+0000
2022-12-21T12:33+0000
2022-12-21T12:33+0000
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The Finnish government has announced a three-pronged plan to help its citizens battle with sky-high energy bills this winter as Europe remains in the grip of an energy crisis.Prime Minister Sanna Marin of the ruling Social Democrats said the goal was to ensure reasonably priced electricity through the difficult winter months. The Nordic nation is facing an uphill battle as it decided to wean itself off Russian energy. Its woes come as a pan-European crisis and exorbitant prices have been exacerbated by local glitches such as further delays at the vaunted Olkiluoto 3 reactor that left the Finnish market power hungry. With a shortage of gas and electricity, the nation’s authorities have warned of possible rolling power cuts this winter.Prime Minister Marin herself admitted that new electricity subsidies would cost the state a lot of money, with the price tag potentially exceeding a billion euros. One of the ways of funding the support is the new windfall tax levied on energy firms making excess profits. However, that revenue will not be available until 2024.Finnish opposition parties and even the government sidekicks, the Left Alliance, said these measures should have been planned and implemented much earlier, without waiting for the crisis to get as bad as it has. Furthermore, subsidy models have been slammed as largely beneficial for wealthier households that use electricity more lavishly than poor ones.This comes after the Finnish Finance Ministry marked down its economic forecast for 2023, now predicting a 0.2 percent GDP decline and indicating a recession in 2023. The nation’s GDP began to slide in autumn, and weak economic performance is expected to continue over the winter.A broad rise in prices has cut families' purchasing power as incomes have fallen behind. Although the Finnish economy is now expected to recover from inflation, it will not return to the previous growth track because of the conflict in Ukraine, the ensuring massive sanctions and Finland’s own trade decisions, as the loss of neighboring Russian markets will leave a permanent gap in exports.Finland’s sprawling crisis, which largely echoes that of the eurozone, has been driven by Helsinki’s self-crippling “reprisals” against Russia and its energy over its special operation in Ukraine. Helsinki also made a point of refusing to comply with Moscow's demands to pay for gas in rubles, with senior politicians claiming that the conflict in Ukraine, in which Finland resolutely supports Kiev with arms, training and financial assistance, rendered cooperation with Russia impossible. As as result, a number of Finnish companies have left Russia, at a loss. Furthermore, according to various estimates, the Nordic nation may annually lose more than 2Bln euros ($2.1Bln) in revenues from Russian tourists, a welcome source of income for a slew of communities on the border area.
https://sputnikglobe.com/20221125/one-in-three-finns-cannot-get-by-on-current-salary-survey-finds-1104670470.html
https://sputnikglobe.com/20221118/finnish-food-prices-hit-record-highs-as-economy-tightens-1104356416.html
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europe's energy crisis, finland's energy crisis, looming recession, electricity aid package, galloping inflation, soaring prices
europe's energy crisis, finland's energy crisis, looming recession, electricity aid package, galloping inflation, soaring prices
Finland Dangles Massive Power Aid Package As Energy Crisis Worsens, Recession Looms
As Finns are saddled with huge energy bills and galloping inflation as the economic outlook becomes increasingly dire, the government pledged to step in and offer some respite in the form of one-off payments and extended payment periods — measures expected to leave an even larger dent in the state coffers.
The Finnish government has announced a three-pronged plan to help its citizens battle with sky-high energy bills this winter as Europe remains in the grip of an energy crisis.
Prime Minister Sanna Marin of the ruling Social Democrats said the goal was to ensure reasonably priced electricity through the difficult winter months. The Nordic nation is facing an uphill battle as it decided to wean itself off Russian energy. Its woes come as a pan-European crisis and exorbitant prices have been exacerbated by local glitches such as further delays at the vaunted Olkiluoto 3 reactor that left the Finnish market power hungry. With a shortage of gas and electricity, the nation’s authorities have warned of possible rolling power cuts this winter.
First, the plan includes a one-off lump sum reimbursement of a proportion of electricity bills paid in November and December. Second, extended payment periods will be provided for electricity bills. Third, a price cap, which would limit how much households can be charged for their power, is planned.
Prime Minister Marin herself admitted that new electricity subsidies would cost the state a lot of money, with the price tag potentially exceeding a billion euros. One of the ways of funding the support is the new windfall tax levied on energy firms making excess profits. However, that revenue will not be available until 2024.
Finnish opposition parties and even the government sidekicks, the Left Alliance, said these measures should have been planned and implemented much earlier, without waiting for the crisis to get as bad as it has. Furthermore, subsidy models have been slammed as largely beneficial for wealthier households that use electricity more lavishly than poor ones.
25 November 2022, 06:19 GMT
This comes after the Finnish Finance Ministry marked down its economic forecast for 2023, now predicting a 0.2 percent GDP decline and indicating a recession in 2023. The nation’s GDP began to slide in autumn, and weak economic performance is expected to continue over the winter.
A broad rise in prices has cut families' purchasing power as incomes have fallen behind. Although the Finnish economy is now expected to recover from inflation, it will not return to the previous growth track because of the conflict in Ukraine, the ensuring massive sanctions and Finland’s own trade decisions, as the loss of neighboring Russian markets will leave a permanent gap in exports.
Finland’s sprawling crisis, which largely echoes that of the eurozone, has been driven by Helsinki’s self-crippling “reprisals” against Russia and its energy over its special operation in Ukraine. Helsinki also made a point of refusing to comply with Moscow's demands to pay for gas in rubles, with senior politicians claiming that the conflict in Ukraine, in which Finland resolutely supports Kiev with arms, training and financial assistance, rendered cooperation with Russia impossible. As as result, a number of Finnish companies have left Russia,
at a loss. Furthermore, according to various estimates, the Nordic nation may annually lose more than 2Bln euros ($2.1Bln) in revenues from Russian tourists, a welcome source of income for a slew of communities on the border area.
18 November 2022, 11:04 GMT
