The decision represents a U-turn for the country – previously a champion of development – with critics warning the cuts will ‘kill the NGO sector’

This article is more than 5 years old

This article is more than 5 years old

The new centre-right Finnish government has decided to cut development aid by 43%, prompting furious reactions from NGOs and fears other EU countries will follow its example.

The new Finnish government, which took power on 29 May and has former EU commissioner Olli Rehn as minister of economic affairs, has decided to reduce the budget for development cooperation by 43%.

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The cuts will start this year. No more revenue from emission allowance auctions will be allocated to development cooperation. Another cut worth €300m ($336m) would come in the 2016 budget. The cuts combined would mean a cut of 43% compared to 2014. The funds available for helping the world’s poor were then €870m.

The decision by the three parties forming the government – Centre party, Finns party and the Coalition party – is a huge turnaround in Finnish foreign policy, where international solidarity has been one of the core elements, said Marko Ulvila, chairperson of the Siemenpuu Foundation in a statement.

Rilli Lappalainen, secretary general to Kehys, the Finnish national platform within the European NGO confederation for relief and development Concord, told EurActiv that the cuts would “kill the NGO sector”.

Lappalainen said the decision had not been unexpected, as it was part of the coalition agreement. He said cuts had been made in all sectors of society, but the biggest cuts were for development aid and for education.

He said the NGO sector had approached the government for further details, but those were still unavailable and would be announced shortly.

“They are really killing the NGO sector, especially the small ones. This is really dramatic. Finland has always been one of the champions of development and a reliable partner,” said Lappalainen.

Finland has always been one of the champions of development and a reliable partner Rilli Lappalainen, Concord

The foreign ministry, which is responsible for the development cooperation budget, has warned NGOs that they should prepare for 30%–40% cuts next year. This will reportedly not only have an impact on new programmes but on existing contracts too.

Representatives of Finnish NGOs and civil society have also published an open letter to Lenita Toivakka, minister of foreign trade and development, reminding the minister that the work that Finnish development organisations do is valuable and benefits the poorest of the poor.

They wrote: “We represent regular Finnish people who want to participate in working for a more just world. Development cooperation has wide support. More than 80% of Finns consider development cooperation important. If you implement the planned 30%-40% cuts, you’re eroding the foundations of the long-term and effective work of our organisations.”

Reetta Helander, communication officer of Kehys, told EurActiv: “We find it shocking that Finland, who has been a stout supporter of civil society, leading by example, decides to deliver a death blow to a number of NGOs, who will be unable to continue their work after these cuts.

“This is a worrying signal to send out, especially now, when the space for civil society is under threat in many countries all over the world.”