Petteri Orpo has been appointed as the new prime minister of Finland's ruling coalition, which has pledged to address the country's declining public finances while also improving economic growth. The former finance chief and head of the conservative National Coalition Party was approved by the Finnish parliament as the head of the new government, which also includes the far-right Finns Party. The coalition aims to implement austerity measures, create jobs, and tighten immigration policies, having won the April general election on a platform of addressing public debt.
Following his appointment, Orpo acknowledged the need to abide by national and European legislation, particularly with regards to the central bank's autonomy. The government's economic program was recently criticized by the central bank, with Governor Olli Rehn stating that it violated existing laws and regulations that protect central bank independence. Orpo commented, "We have to act according to the law and regulations in everything. Let’s figure it out calmly and if there’s a mistake, we’ll fix it.”
Due to its position as the northernmost euro area member, Finland has been particularly vulnerable to economic challenges such as those posed by the ongoing COVID-19 pandemic. Nonetheless, the new coalition government has committed to implementing policies aimed at addressing the country's debt, while also pursuing initiatives that promote economic growth and job creation.