The Finnish government plans to cut pensions and tax hikes to fill a hole in the 2025 budget

The Finnish government has no choice but to cut pensions in order to improve public finances, Finance Minister Riikka Purra has said in an interview with Helsingin Sanomat, a local newspaper.

According to the minister, cuts to occupational pensions are inevitable as part of the government austerity package. Purra said that the government could freeze the annual cost of living-based increases in pensions or raise taxes on some pensions.

The Finnish government earlier introduced cuts to basic social security benefits such as housing support and unemployment allowances for low-income groups. Several human rights groups sounded the alarm over the cuts, warning that they could lead to a rise in relative poverty among young adults, single parents and elderly