The Finnish government’s mid-term policy review session, which ended yesterday and has also been cited as a “growth review session”, ultimately did not produce the growth measures that students were seeking.
The government plans to reduce labor taxation for low- and middle-income earners by 525 million euros in 2026 and 650 million euros in 2027. The government also plans to reduce corporate income tax from 20 % ➡️18 %, which is believed to improve the competitive position of Finnish companies and encourage investment in Finland. At the same time, taxation for high-income earners will be reduced by 335 million euros when marginal taxes are reduced by 52%. The tax cuts are justified by promoting economic growth, improving the purchasing power of employees, but above all by encouraging them to work more. Although tax cuts increase the purchasing power of employees, they do not warm students who are not working.
The tax cuts proposed by the government in an already difficult economic situation show that the ruling parties are not interested in improving the situation of students or education. The government’s message to students is clear: study more effectively and go to work.
“The growth review session was a perfect situation for the Finnish government to show faith in the economic growth that Finnish higher education enables. However, instead of faith, higher education funding is being cut and students are being offered a “tax hammer”, says Joel Kangasmaa, chairperson of the board of the Student Union of Haaga-Helia – Helga.
The report prepared by Risto Murro’s Growth Working Group was said to be utilized at the growth review session. The report lists raising the level of higher education as one of the most important prerequisites for economic growth. Raising the level of higher education refers to the goal of having 50 % of the young generation attend higher education by 2035. To achieve this goal, the government has already decided to increase the number of entry-level places in higher education and has invested 3.8 million euros in this. Now the government has decided to increase the number of entry-level places even further, but will allocate them to degrees that support economic growth. The goal is becoming a perpetual goal, because the basic funding of universities will be reduced by a total of 65 million euros between 2026 and 2028. The number of students will therefore be increased, but the basic funding will be cut. The government is thus giving with one hand and taking from higher education with the other.
Both the National Union of Students in Finnish Universities of Applied Sciences – SAMOK and the National Union of University Students in Finland (SYL) have called on the government parties to ensure the funding of higher education and the importance of students’ livelihoods. On 1st of August, university students will switch from general housing allowance to the housing supplement of the study grant, which is estimated to further weaken the financial situation of students. The growth review session would have been an excellent opportunity for the government to present investments in students’ livelihoods, for example by deciding to implement a comprehensive reform of study grant, which would increase the amount of study grant and months of support while tying euros to a suitable index.
“It is sad to note that investing in education and students is seen as a target for cuts rather than investment. Real gestures of growth from the student’s perspective have remained few in this growth review session”, Kangasmaa says.
More information
Joel Kangasmaa
Chairperson of the Board
joel.kangasmaa@helga.fi
