Debt will not be halted even when the economy begins to grow again. Moreover, the sustainability gap is now larger. A post-crisis change of direction in the public finances is required.

The corona pandemic has seriously weakened the euro area economy and the outlook remains uncertain. Recovery will be affected by e.g. how successful the balance between the virus and the economy turns out to be, and how quickly confidence improves.

Healthy public finances provide an irreplaceable shield when we hit hard times. It is important to focus the fiscal policy stimulus effectively and take forward structural reforms. Finland’s labour market, too, has a vital role to play as the economy enters the recovery phase.

The European Commission, on Wednesday, published its proposal for a European recovery fund to help restart the economic engines in a Europe shaken by the coronavirus.

COVID-19 spreads in India.

After a sharp decline in January and even sharper decline in February, the Chinese economy started to recover in March.

The Finnish economy is still going through a period of transition in which it has to adjust to two large structural realignments.

Population ageing will push up public expenditure at the same time as the contraction in the working-age population reins in economic growth. The sustainability will remain around 3% of GDP.