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Although there seems to be enough support by MPs for basic income so that it realistically could be trialled, I wouldn't be holding my breath. The government has too many other things on its plate.

Finland is suffering from a period of slow growth and rising unemployment. The three immediate reasons are the economic troubles of euro area, the decline of Nokia, and the trade sanctions against Russia, one of Finland's largest trading partners. Add to that the quick rise of wages until 2008, the aging population, an expensive social welfare system, and the inability to devalue the local currency, and the troubles seem very hard indeed.

The government's main goal is to adapt the Finnish economy to the new reality, by spurring growth and improving state fiscals. It has many options on its plate, basic income being one of them.

Currently, however, the government's focus seems to be in short-term. The current hot topic is the so-called "social contract", which is essentially government trying to make a deal with labor unions to increase the length of work week from 37,5 hours to 40 (or a similar reduction in wages). This plan, perhaps not so surprisingly, seems to be failing. After it is buried (probably within the next few days), the government may try "fiscal devaluation", i.e. moving tax burden from companies to citizens. And then some painful public finance cuts. And after that, who knows what?

Regarding long-term efforts, other pending reforms have more support than basic income, but still not enough agreement to be hammered out quickly. The two most important ones are health care reform and the change of municipality responsibilities. Both of these have been in talks for years without signs of being resolved.

All this is made more difficult by the fact that the rising populist party 'The Finns' is in government for the first time, still learning how it wants to play the game.

In summary, it isn't clear when the government will move from short-term considerations to longer-term restructuring, and if the basic income will still be on the plate then.

Edit: grammar.




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