DirectDemocracyS

Global direct democracy movement

FINLAND'S POLITICAL, ECONOMIC, SOCIAL AND ENVIRONMENTAL PROGRAMME

From analysis of the current situation to concrete solutions

Version 1.0 | May 2025

directdemocracys.org | public.directdemocracys.org

INTRODUCTION: WHY FINLAND NEEDS A NEW POLITICAL VISION

Finland has long been one of the happiest countries in the world, with a strong education system, low corruption and an equal society. Yet in 2025 the country stands at a crossroads: two consecutive years of recession, rising unemployment, growing public debt, deteriorating social services and rising populist forces threaten the foundations of that reputation.

DirectDemocracyS (DDS) is a global political organization built on the principles of direct democracy, collective ownership, logic, common sense, and mutual respect. We offer neither ideological promises nor empty rhetoric: we offer a concrete, actionable program based on facts, data, and consistent cause-and-effect analysis.

This document analyzes the current state of Finland honestly and constructively, points out structural problems, and presents a detailed, feasible action plan at the political, economic, social, and environmental levels.

Core principles of DDS in the Finnish context:

• Logic and facts before ideology
• Direct participation of citizens in decision-making
• Open-mindedness and responsibility in all public activities
• Collective ownership of critical resources
• Mutual respect: individual rights and community responsibilities

PART I: CRITICAL ANALYSIS OF THE CURRENT STATE

1.1 State of the Economy: A Hidden Crisis

Macroeconomic facts

Finland's GDP contracted by 1.2% in 2023 and 0.5% in 2024. This makes Finland one of the worst-performing economies in the eurozone, which is a marked contrast to the country's previous reputation as a Nordic economic miracle.

Indicator	Value (2024-2025)
GDP growth 2024	-0.5% (second consecutive contraction)
Unemployment rate 2024	8.4% (highest in the euro area)
Unemployment rate 2025	Almost 9% since the beginning of the year
Public sub-station	4.4% of GDP in 2024
Public debt	About 82% of GDP in 2024
Inflation	Decreased, but consumer confidence weak
Construction sector	Historically low activity
Export growth	Weak due to falling demand in Germany and Sweden

Structural problems

The problems of the Finnish economy are not only cyclical but also structural. Exports are too dependent on a few sectors (forestry, technology, defense) and trading partners (Germany, Sweden). Domestic investment has been fragmented, and the construction sector - one of the country's largest employers - has collapsed.

The aging population poses serious challenges for public finances: pension, healthcare and care costs are growing faster than the tax base. The OECD warns that without structural reforms, public debt will continue to grow even in boom times.

DDS's criticism of current economic policy

The current Orpo government's austerity program is based on the false assumption: that economic stability will be achieved by cutting social spending and weakening workers' rights. DDS rejects this logic for several reasons:

• Social benefit cuts reduce households' purchasing power, deepening the decline in consumption
• Weakened labor market rights increase uncertainty, which slows down consumption and investment.
• Cuts shift costs, not eliminate them: e.g. homelessness increased by 20% since 2024
• The weight loss model does not support productivity growth or innovation

1.2 The crisis in the labor market

Finland has had the highest unemployment rate in the euro area since 2024. However, unemployment is not evenly distributed: unemployment among young people (15-24 years old) is clearly higher, the employment rate of immigrants is significantly below the threshold, and regional differences are increasing.

The current government's labor market reforms - tightened dismissal protection, limited right to strike, shortened unemployment benefits - have weakened employees' bargaining power without significant positive employment effects. Shop stewards and trade unions have had a particularly difficult year.

Special problems

• Construction sector: construction at a historic low, workers have to be recruited from abroad
• Digital transformation: many traditional jobs are disappearing, replacement jobs are not being created fast enough
• The low productivity trap: many new jobs are short-term or part-time
• Geographical imbalance: Helsinki is growing, the countryside is withering away

1.3 Social crisis: The collapse of the welfare state

Homelessness

Finland was the only EU member state where homelessness had been consistently decreasing for decades. This historic achievement is at risk: homelessness increased by 20% in 2025 compared to the previous year, and the number of homeless people living alone increased by 773 people. Approximately 4,579 people were homeless in 2025.

The reasons are identifiable: rising rents, cuts to social benefits, a lack of affordable small apartments, and weakened social services. This is a direct consequence of political choices, not incompetence.

Health care

The welfare regions, which took over responsibility for social and health care from the municipalities in 2023, faced financial difficulties in 2024. The government made cuts to social and health services, and the number of hospitals was proposed to be significantly reduced. Waiting times are increasing, staff shortages are deepening, and low-income people are suffering the most.

Training

Finland is known for its PISA results and free higher education. Yet the OECD notes that higher education graduation rates are lower than Nordic peers, and university funding has tightened. The cuts are translating into a decline in quality that will show up with a delay - but surely.

Challenges to democracy

Finland received a historically high number of confidence votes in parliament in 2024 - eight confidence votes, which is equivalent to the preliminary list of 2012 and 2014. The government's right to close down the trade unions aroused deep disagreement. Citizens' political frustration is growing at the same time as opportunities for participation are shrinking.

1.4 Environmental crisis: The gap between climate promises and reality

Finland has an ambitious goal of becoming carbon neutral by 2035. However, the OECD warns that forest land use is a significant obstacle to achieving this. Forest land - one of Finland's most important natural resources - has changed from a net source of carbon to a net sink in certain areas.

• Peat production and its gradual cessation require an effective transition policy
• Transportation is one of the most important sectors of the economy in a sparsely populated area.
• Mining is expanding, but environmental regulations are criticized as insufficient
• Biodiversity loss is documented: many endangered species do not receive adequate protection

PART II: DirectDemocracyS' OVERALL PROGRAM FOR FINLAND

The following program is based on the global principles of DDS, adapted to the specific context of Finland. Each proposal is realistic, measurable and feasible. We also present concrete examples and anticipated consequences.

2.1 POLITICAL REFORM: Building direct democracy

Problem

Finland's representative democracy functions reasonably well, but citizens' real opportunities to influence decision-making are limited. Parties operate as closed hierarchies, popular votes are rare, and many significant decisions are made without the direct participation of citizens.

DDS's solution: Participatory democracy at all levels

• Mandatory referendum for all laws that change the constitution or affect more than 10% of GDP
• Direct participation at the municipal level: digital platforms where citizens can propose, vote and monitor decisions in real time
• Reduced threshold for citizens' initiative: 10,000 signatures (currently 50,000) are enough for consideration by parliament within two weeks
• Open budget: every euro area spending must be publicly visible, searchable and commentable
• Random parliament: some legislative committees consist of randomly selected citizens (like the model used in Ireland)

Concrete example

The City of Helsinki could start a pilot program where 10% of the city's investment budget (approx. 150-200 million euros) would be distributed through a direct referendum. All Helsinki residents over the age of 16 could vote digitally or physically on their priorities. The model has worked in Paris, Porto Alegre and Madrid.

Anticipated consequences

• Improved legitimacy for political pathos
• Growth in political engagement among citizens
• Less populist protest voting when people enjoy genuine influence
• More efficient public spending because citizens know how to prioritize their own needs

DDS requirement for shoulder girdle flexibility

The salaries, benefits, side jobs and gifts of all MPs, ministers, civil servants and heads of publicly funded organisations must be published in an open register. Meetings with lobbyists must be recorded and published within 48 hours. By law, all government documents are public unless specifically and justifiably classified as secret.

2.2 ECONOMIC PROGRAMME: Fair and sustainable growth

Macroeconomic philosophy

DDS rejects both austerity based on a weight-loss model and irresponsible debt. We encourage investments that reduce future costs and taxation that is fair, simple and efficient.

Tax system reform

Problem:

Finnish taxation places an unreasonable burden on work and consumption, while capital and wealth are taxed very little. Systematically cut social benefits are disproportionate to the tax breaks given to the highest earners.

DDS solutions:

1. More progressive capital income taxation: the capital tax rate will be increased from 34% in stages so that small investors retain the current benefits, but a 42% rate will apply to capital income over 100,000 euros
2. Global minimum corporate tax: strict enforcement of the EU's 15% minimum tax, with no exemptions for large companies
3. Transfer tax on securities markets: 0.1% final tax for financial transactions that do not support real investments
4. Fairer inheritance laws: small inheritances (under EUR 150,000) will be exempted, larger inheritances will be taxed more severely
5. Real estate tax reform: urban land used for housing will be changed according to its intended use - a speculative empty plot costs more than one built for residential use

Concrete example - tax base broadening:

The OECD estimates that Finland has a tax gap of up to 5-8 billion euros per year due to aggressive tax planning and the use of tax havens. DDS proposes a separate 'anti-tax evasion unit' within the tax administration, focusing exclusively on international structures of large companies and wealthy individuals. Preliminary estimate: 1-2 billion euros in additional revenue annually.

Investment program: DDS' five major priorities

Investment area	Annual investment (estimate)
Green infrastructure (energy, transport)	EUR 2.5 billion
Housing policy and affordable housing	EUR 1.5 billion
Education and research & development	EUR 1.2 billion
Structural reform of healthcare	EUR 1.0 billion
Digital infrastructure and AI	EUR 0.8 billion
In total	7.0 billion euros / year

This major investment program will be financed by a combination of new tax revenues, streamlining public procurement (estimated 10-15% reduction), EU structural funds and the so-called 'DDS investment fund' - whose capital consists partly of micro-investments and shares from citizens.

National Development Bank - DDS model

DDS proposes the establishment of a strong national development bank in Finland (the current Finnvera would be significantly expanded), whose task is to finance projects that are still mandated and that the private sector does not undertake due to market failure: affordable housing construction, green transition investments, internationalization of SMEs.

Example: The Dutch Investment Bank (NWB) has provided over €100 billion in loans to the infrastructure and housing sectors at below-market interest rates, without any loss to the state.

2.3 ECONOMIC POLICY: The economy of the future

Finland's economic strengths

Finland has several significant competitive advantages that are not being sufficiently exploited: a high level of expertise, clean nature, a functioning rule of law, excellent digital infrastructure and a strong industrial tradition. DDS's economic policy builds on these strengths.

DDS priorities

• Green industrial policy: Finland's forest and energy sector is partially reorienting towards battery materials, biogas plants and the export of clean hydrogen technology
• Circular economy: Full implementation of the EU's circular economy strategy will create an estimated 50,000-80,000 new jobs in Finland by 2030
• Sharing economy law: clear rules for Airbnb, Uber and other platform operators that guarantee taxability and workers' rights
• Digital export industry: Finland's IT sector needs government support for international education - model from Israel and Estonia
• Small Business and Cooperative Support Program: simplified bureaucracy, fast registration, tax breaks for the first two years

Concrete example: green hydrogen

Finland has the natural conditions (wind, solar, biomass) and industrial expertise (Outokumpu, Valmet, Wartsila) to lead green hydrogen projects. DDS proposes a national 'Green Hydrogen Finland' program that combines research, pilot plants and an export strategy. Goal: 500 million euros in export revenue from hydrogen technology by 2032.

2.4 SOCIAL PROGRAM: A just society

Social security system reform

Finnish social security is a complex, bureaucratic and in places riddled with incentive traps. DDS proposes a gradual shift towards a simpler, more universal and human dignity-respecting model.

Universal basic security (DDS model)

DDS does not promote a blind basic income that eliminates all other benefits. Instead, we propose a two-tier model:

6. Universal basic security: a guaranteed monthly minimum income (approx. EUR 800-900/month) for everyone aged 18 and over, covering a modest cost of living. This replaces the current fragmented basic benefits.
7. Employment supplement: employment, study or community work (family care, volunteer work) brings in additional income. You can get extra income without losing basic security.

Anticipated consequences:

• Bureaucratic costs are cut: one system replaces ten
• The employment supplement model eliminates employment traps, where accepting work reduces benefits by one euro per euro.
• The purchasing power of those with lower incomes will improve, stimulating local consumption
• Social security enables entrepreneurial risk-taking

Housing policy: Home is a fundamental right

DDS position:

Affordable housing is a human right, not a market commodity. Leaving the housing market exclusively to private actors and investors is a political choice that has led to increased homelessness and social segregation.

Concrete actions:

8. Municipal housing construction program: the state guarantees loans to municipalities that build affordable rental housing. Target: 10,000 new homes per year for five years.
9. Vacant housing tax: homes in cities that are kept empty (for more than 12 months) pay a progressive property tax, which encourages them to take the homes into use or sell them.
10. Developing the ARA system: The Housing Finance and Development Center's budget will be doubled and its affordable lease agreements will be extended from 10 to 20 years to increase certainty.
11. The 2027 End Homelessness Agenda: transnational funding and coordination will help achieve the existing goal.

Healthcare: Universal, equal, functional

DDS does not support the privatization of healthcare. The private sector can provide complementary services, but universal, free primary healthcare for all is a public service and a fundamental right.

DDS Healthcare Program:

• Strengthening primary healthcare: increasing the number of health center doctors, general practitioners and nurses. Goal: waiting times for doctor/nurse visits under 7 days in every municipality.
• Mental health as a priority: mental health services will be integrated into primary health care. Therapy guarantee: maximum 4-week waiting time for mental health services.
• Management of welfare regions: the financial management of the regions is strengthened through training and national best practice sharing processes.
• Prevention: a primary health promotion program for each municipality, which includes physical activity, nutrition and substance abuse services. One euro invested in prevention generates five euros in treatment costs.

Education: Equal, innovative, future-oriented

The strength of the Finnish education system lies in its equal school system, where family background does not determine children's opportunities. This should not be compromised.

12. Universal high-quality provision of early childhood education: subjective right to day care for all children, no hour limits. This supports women's employment and children's learning outcomes.
13. Significantly increasing teachers' salaries: Finland is competing with other sectors for the best talent. The attractiveness of the teaching profession must be restored.
14. Vocational education reform: Vocational education (AKE) will be more strongly linked to working life - every student will have a two-year right to on-the-job training.
15. International education: Finnish language teaching for foreign students will be made more effective, and a residence permit after studies will be automatic for five years
16. Digital pedagogy: AI literacy to be a mandatory subject at all levels of education

2.5 MIGRATION AND INTEGRATION: A realistic and humane model

Problems in the current situation

At the beginning of 2024, there were approximately 386,100 third-country nationals in Finland (6.9% of the population). The integration of immigrants into the workforce is weak: unemployment among people with a foreign background is many times higher than that of native Finns. The current government's responses have been largely restrictive - lengthening the waiting period for obtaining citizenship (from five to eight years), tightening the requirements for a residence permit.

Realistic model of DDS

DDS does not consider itself a supporter of either an open border policy or a closed door policy. Our position is simple: Finland needs immigration for economic and demographic reasons, but integration must take place systematically and with respect for values.

Labor immigration:

• Accelerated permit processes in skills shortage sectors (healthcare, technology, construction)
• 'Talent First'-like model: applicants with a university degree or job offer from Finland receive a permit within 30 days
• Making fuller use of the EU Blue Card

Integration program:

• Free Finnish/Swedish language lessons for all new immigrants: intensive courses, no six-month wait
• Recognition system for foreign qualifications: a fast, free process
• Supporting immigrant entrepreneurship: advice in your own language, simplified business establishment
• Mentoring program: every unemployed immigrant receives a personalized guidance plan

Asylum policy:

DDS respects international commitments and EU legislation on asylum. The processes must be made humane and fast: current waiting times for an asylum decision are too long for both the applicant and society. Goal: a decision within 90 days.

2.6 ENVIRONMENT AND CLIMATE PROGRAMME: From ambitious goal to action

Carbon neutrality by 2035: Possible, but requires bold actions

Finland has committed to carbon neutrality by 2035, one of the world's most ambitious targets. However, the OECD warns that deforestation threatens to undermine the goal. DDS supports the goal, but calls for an honest assessment and coherent policy.

DDS's environmental program - five pillars

17. Energy system change: Finland will switch entirely to renewable energy by 2035. Expansion of wind power, solar energy incentives (tax reduction for households), geothermal solutions. The role of nuclear energy is assessed realistically - DDS's position is technology neutral: what matters is zero-carbon, not the ideological choice of technology.
18. Forest policy: The volume of logging will be reduced to meet IPCC standards. The amount of protected areas will be increased to 30% of the land area by 2030. Forest owners will be compensated for carbon sequestration.
19. Circular economy: Single-use plastics will be gradually banned by 2028. Public procurement will favor products made from recycled materials. Producer responsibility will be extended to all product groups.
20. Transport: Public transport will be significantly cheaper - for example, unlimited mobility throughout the country by train for a monthly fee of 50 euros. The purchase subsidy for electric cars will be continued and expanded to also include leasing cars. International air transport: additional tax on long flights.
21. Construction sector: All new public buildings energy neutral or energy producers by 2028. Energy renovation program for the old building stock: state-guaranteed, low-interest loans to housing companies for renovation.

Concrete example - public transport:

The Tallinn model in Estonia (free public transport) has shown that reducing car use and promoting social mobility is possible. On a Finnish scale, national rail transport, which is much cheaper, would reduce carbon emissions, increase regional equality and strengthen public finances in the long term through reduced health and infrastructure costs.

2.7 DEFENSE AND SECURITY: Responsibility without militarization

Finland in NATO

Finland joined NATO in 2023, a significant change from its previously more than 75 years of military non-alignment policy. DDS respects this democratically made pathos. However, defense spending - which includes the acquisition of multi-role fighter jets and warships - must be prioritized in a balanced way in relation to social needs.

DDS position:

• Defense spending must be justified against the grain, not just as an obligation of the alliance
• Reservist training and cybersecurity are more cost-effective than investing in heavy equipment alone
• European Defence Cooperation (developing the EU Defence Union) will reduce costs in the long term
• Civilian crisis management and diplomacy: Finland has a strong reputation in the peacekeeping community - this resource must be maintained and strengthened

2.8 FOREIGN POLICY AND EUROPE

Finland's future is inextricably linked to European integration and international cooperation. DDS supports a strong, reformed EU based on real democratic legitimacy - not just election-time agreements between governments.

DDS's European vision:

• Significantly increasing the power of the EU Parliament in relation to the Council and the Commission
• European citizens' initiative: 1 million signatures trigger binding legislative process
• European minimum wage: taking into account national differences, but a coordinated floor prevents social dumping
• EU tax union: a functioning 15% minimum tax for large companies, automatic exchange of tax information

PART III: IMPLEMENTATION, SCHEDULE AND INDICATORS

3.1 Phased implementation

Short term (0-2 years)

• Open budget platform: all public spending available online
• Citizens' initiative thresholds lowered to 10,000 signatures
• Empty home tax pilot in major cities
• Simplifying basic security: one agency replaces many
• Intensive Finnish language courses for immigrants: within 6 months of arrival in the country
• A tax evasion prevention unit is established.

Medium term (2-5 years)

• Gradual introduction of universal basic security
• 10,000 new affordable homes/year program launches
• Significant denigration of public transport
• National Development Bank becomes operational
• The therapy guarantee is implemented nationwide
• Participatory budgeting pilot in three cities

Long term (5-10 years)

• The Carbon Neutrality 2035 path is strengthened with measurable monitoring indicators
• Universal basic insurance in full use
• The Finnish model of direct democracy integration is a European reference
• The employment rate of immigrants reaches the level of native Finns
• Homelessness at historic low, continuing to decline

3.2 Funding sources and budgetary implications

Financing source	Estimated annual impact
Combating tax evasion	+1.5-2 billion EUR
Wealth tax increase (large inheritances)	+0.8 billion EUR
Streamlining public procurement (10% pollution)	+1.0 billion EUR
EU structural funds and investment funds	+0.5-1.0 billion EUR
Increase in capital gains tax (on income over EUR 100k)	+0.7 billion EUR
Speculative securities market tax	+0.3 billion EUR
Total additional income	+5-6 billion EUR / year

This additional revenue, combined with the cost savings included in the program (bureaucratic costs, prevention in healthcare, reduction in the treatment of homelessness, etc.), makes the program financially viable without irresponsible debt.

3.3 Metrics and monitoring

DDS requires that every political program commits itself to measurable goals. Below are the most specific indicators to be monitored:

Indicator	Goal 2030
Unemployment rate	Less than 5.5%
Homelessness	Less than 2,000 people (2025: 4,579)
Public sub-station	Less than 2% of GDP
Fasting in relation to the 2035 target	At least 65% reduction from 1990 levels
Educational achievement gaps	Year of birth does not predict outcomes (Gini below 0.20)
Employment rate of immigrants	Maximum 5% difference from native Finns
Citizens' political trust	NPS over +30 (currently negative)
Corruption index (Transparency Int.)	Remain in the top 3 in the world

CONCLUSION: ANOTHER FINLAND IS POSSIBLE

Finland stands at a crossroads. Current policies - austerity, weakening workers' rights, restricting immigration without strengthening integration, rolling back climate goals - are not taking the country in the right direction. The results are already visible: the highest unemployment in the eurozone, growing homelessness, and weakened citizens' trust in democracy.

DirectDemocracyS does not promise easy solutions. We promise honest analysis, consistent logic, and concrete proposals that have proven to work elsewhere in the world.

Finland's strengths are unique: high education levels, low corruption, a functioning justice system, strong social institutions. They should not be dismantled - they should be built further. DDS's program is not a revolution but an evolution - a gradual, consistent change towards a more genuinely democratic, just and sustainable Finland.

Real change doesn't come from above, but from citizens. DirectDemocracyS is building just that kind of movement: open, inclusive, logical, and respectful of all.

Finland is doing better. Together.

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