According to Finance Minister Annika Saarikko’s speech on Friday, February 18, the Finnish government wants to address growing energy prices through subsidies and tax cuts.
Saarikko proposed 17 initiatives, including temporarily raising commuter subsidies, deferring property taxes for farmers, and, in the future, subsidizing loans for projects that increase family energy efficiency, Reuters reported.
“The toll has been comparably smaller on us than on many other EU countries, for instance, in heating and electricity rates, since we are not as dependant on natural gas as many others,” she stated during a news conference.
Fuel prices have surpassed 2 euros per liter for the first time, putting the center-left government under pressure to reduce the impact of rising energy costs on Finnish consumers.
According to Statistics Finland, consumer price inflation jumped to 4.4 percent in January from 3.5 percent the previous month, with rising energy and fuel prices cited as the primary reasons.
According to Nord Pool figures, Finnish energy costs have grown progressively since a drop in the spring of 2020 caused by pandemic-linked lockdowns, mirroring trends elsewhere in the Nordic region.
Increased power prices have compelled neighboring Sweden and Norway to subsidize household energy expenditures.