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2003 OECD Economic Surveys: Finland 2003

image of OECD Economic Surveys: Finland 2003

This 2003 edition of OECD's periodic review of Finland's economy examines recent economic developments, policies and prospects and includes special features on the effectiveness of public spending; ageing, pension reform and long-term public finances; and policies to boost potential output growth.

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Ageing, Pension Reform and Long-term Public Finances

Ageing occurs earlier and is more rapid in Finland than in most other OECD countries. Recognising the urgent need to act, Finland is among the few OECD countries to introduce a comprehensive pension reform to address one of the major fiscal pressures resulting from ageing. This chapter first highlights the major features of the reform and assesses its effects. It then considers it in the broader context of the ageing pressures on long-term public finances. In particular it addresses the question of how ageing and the pension reform should influence the setting of current fiscal objectives.

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