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Workers, pensioners and companies hit hardest if labour accord is not reached

PM Juha Sipilä has pledged to deal out an additional 1.5 billion euros worth of austerity measures if an agreement between the government and labour market organisations is not signed. Those hit hardest include working adults, pensioners and companies.

Eläkeläinen Reisjärvellä.
Image: Yle

The Ministry of Finance has published its estimate on which demographics the government's added austerity plans would target the most, should a so-called social contract between government and labour market organisations fall through.

The Ministry reports that the measures would be aimed mostly at working adults, pensioners and companies. Workers would bear the brunt of some 34 percent of all austerity measures, pensioners hit with 20 percent and companies with 13 percent of the planned cuts and policies.

11 percent of all actions would also affect families with children, another 10 percent going towards the unemployed and social security. The rest of the efforts would fall on the public sector, education and students.

The Ministry's assessment bears a note that the classifications are illustrative and that the categories are not mutually exclusive.

The government has adopted a carrot and stick approach: if the talks bear fruit, it has promised to introduce tax breaks worth one billion euros. But if they flounder, it says the country could face further belt-tightening amounting to 1.5 billion euros.

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