Freezing the university index sounds like a small measure, but as costs increase, it means that universities must cut their operations. Finland has clearly fallen behind competitors in the number of highly educated people. In practice, this index decision would stop the possibility of increasing the intake at universities and, at worst, it would mean reducing the intake.
In the current employment situation, many people might hope the intake were reduced, but in practice, this would make it more difficult for young people to find places of study and would increase unnecessary gap years. When the employment situation starts to improve, we will have no employees for the jobs being created. As a result, investments will head elsewhere instead of Finland.
Purra also proposes that the growth of RDI funding be slowed down and that the statutory target of 4% of GDP in RDI expenditure in 2030 be postponed to 2035. This change would significantly weaken future growth, as Finland’s success is based on our expertise being at the global forefront. The increase in RDI funding has been a welcome stimulus in this declining economy. If it is now abandoned as well, one may ask, what will be the legacy of this government?
The proposal also reflects a favourite theme of the Finance Minister’s party – that is, making immigration more difficult. Purra proposes that integration compensation for municipalities and wellbeing services counties be discontinued. Finland needs new skilled workers from outside its borders and we need to ensure their integration as quickly as possible. Although there are problems with the current integration model, it is absolutely unsustainable to abolish the entire system and slash funding.
A small flicker of light in the flood of opinion following the proposal was the fact that the Minister’s proposal was practically rejected by the other governing parties. It remains to be seen whether this was only a trick of a party facing low support or a real attempt to find common solutions for the government as a whole. For the sake of Finland’s growth, I truly hope it was the former.
