Cuts could wreak economic havoc, says report

Budget cuts to Finnish universities risk damaging the country’s economic performance and competitiveness, a report has warned.

A hypothetical 10 per cent cut in universities’ core funding could result in a loss of almost 17,000 jobs and €1.8 billion in gross value added—which measures the value of goods and services produced in an area of an economy—a report conducted by the Scottish consultancy firm BiGGAR Economics has found.

The report, published on 13 June, said that Finland’s 14 publicly owned universities make a “substantial” contribution to the country’s economy. They had a core income of €2.7 billion in 2016 and employed 32,000 people. The report estimated that the multiplier effect of the universities’ activities that year led to a total economic contribution of €14.2bn, and 136,000 jobs, for Finland.