- Funding Programme
- Year
- 2022
Delivering Good Governance and Balanced Local Economy in Finland
The European Commission supported Finland in managing its major administrative reform by improving fiscal decentralisation, public financial management, and local governance. Through analysis, policy advice, and capacity-building, it helped national and local authorities adapt to new well-being service counties, ensuring efficient, equitable, and sustainable public service delivery.
Context
Finland faces rapid population ageing and regional disparities, putting pressure on public finances and service delivery. A major reform introduced “well-being services counties” to manage health, social, and rescue services, reshaping governance and fiscal structures. This transition creates challenges in fiscal balance, administrative capacity, and coordination across government levels. The project supports EU priorities on resilience, efficient public administration, and sustainable public finances, as highlighted in the European Semester. It addresses the need to better understand and manage the reform’s impact while ensuring equitable, high-quality public services across regions.
Support delivered
The project was implemented by the European Commission in cooperation with the Council of Europe between 2022 and 2024. It supported the Ministry of Finance and key stakeholders across national, regional, and local levels in Finland. Activities included analytical reports, policy recommendations, and stakeholder consultations on governance, fiscal decentralisation, and spatial planning. The project also delivered targeted capacity-building for civil servants and elected representatives in newly established well-being services counties, alongside guidance based on European best practices to improve coordination, efficiency, and service delivery.
Results achieved
The project improved understanding of Finland’s governance reform, particularly the redistribution of competences and fiscal impacts of the new well-being services counties. It provided concrete recommendations to strengthen fiscal sustainability, intergovernmental relations, and public service efficiency. Capacity-building activities enhanced administrative and governance skills at the regional level. The project also supported better spatial planning and policy coordination, including for metropolitan areas like Helsinki. These results contribute to more efficient public spending, improved service delivery, and stronger governance frameworks, helping Finland address demographic pressures and regional inequalities while ensuring long-term sustainability of public finances.
More about the project
You can read the documents related to the project here: