Finnish Commerce Federation: In the next electoral term, we need measures for strengthening purchasing power and employment

Economic growth in Finland has been slow for a long time, unemployment is exceptionally high and consumer confidence is weak. At the same time, the structure of our economy has changed, as more than half of our GDP and jobs are already generated from private services.

Commerce is the largest employer in the economy: as many as 267,000 people work in companies in the commerce sector. The sector is also the most significant  employer of young people under 25 in the private sector, and more than 40,000 companies operate in the sector.

”The keys to growth in Finland are services and commerce. When purchasing power and consumer confidence are strengthened and the operating environment of companies is kept competitive, the prerequisites for growth and new jobs can be created quickly,” says Kari Luoto, Managing Director of the Finnish Commerce Federation.

”It is also important that the prerequisites of companies in the commerce sector for employing flexibly are not weakened,” says Luoto.

Four key objectives of the commerce sector for the Government Programme

The Finnish Commerce Federation proposes solutions to the Government Programme that strengthen purchasing power and domestic demand. According to the Finnish Commerce Federation, the reduction of labour taxation must continue in all income brackets. In order to stimulate the demand and purchasing power of households, the simultaneous tightening of labour and consumption taxation must be prevented. Strengthening consumption and increasing employment will also increase the state’s tax revenue. The taxation of transport must also remain reasonable and support business operations.

In order to accelerate productivity and growth, the Finnish Commerce Federation emphasises increasing the innovation funding for service sectors and investing in intangible value creation, such as branding and the use of artificial intelligence. At the same time, the exports of digital commerce must be strengthened and competence developed so that education better meets the needs of working life.

According to the Finnish Commerce Federation, a functioning market requires the same rules and obligations, especially in international distance selling. The regulatory burden on companies must be lightened, markets must be opened up to competition and EU regulations must be applied uniformly in Finland.

”The performance of Finnish commerce in the international competition requires ensuring fair rules. The market distortions caused by cheap imports and the unsustainable volume of junk must be tackled decisively both in the EU and nationally,” says Luoto.

In addition, the Finnish Commerce Federation emphasises sustainability and safety as prerequisites for growth. The circular economy and sustainable consumption must be promoted, the safety of commerce must be improved and the increase in disruptive behaviour must be addressed. At the same time, it is important to ensure that the operations of retail and wholesale trade, which are important for the functioning of society, continue uninterrupted even during crises.

Growth in Finland requires services and domestic demand

In the next electoral term, Finland must start growing strongly in order to keep state finances sustainable. By investing in sustainable and internationally competitive commerce, we can bring growth to Finland.

”We need effective decisions that will strengthen domestic demand and develop the competitiveness of companies, thereby improving employment. The keys to growth in Finland are services and commerce. Taking advantage of these opportunities will largely determine what kind of trajectory our economy and employment will be on in the coming years,” says Luoto.

Read more about the election objectives of the commerce sector:

Commerce is the key to growth – the objectives of the commerce sector for the electoral term 2027–2031

For further information, please contact:

Kari Luoto, Managing Director, Finnish Commerce Federation, tel. +358 (0) 400 688 708, kari.luoto(at)kauppa.fi