Sipilä Cabinet

Traffic policy

Minister Berner tried to move the decision making of Finnish trafic policy from Parliament to separate organization. Aim was also to remove car tax and gazoline tax. Prime Minister Sipilä supported these changes. Plan was not approved by other government parties. Minister Berner proposed 19.1.2017 annual traffic tax reduction: car tax 1,4 billion (853 + 547) plus petroleum tax €200 million and distribution of the state roads to a company. It came clear Berner proposal was not government proposal. Other parties denied having taken part in the proposal. The proposal was ordered without competition.

Report focus only private car traffic. The private traffic is competitor of the public transport. "The share of public traffic in Finland is one of the smallest in Europe" reported Ministery of Traffic and Communication in 2.9.2004. According to UITP (International Association of Public Transport) upfront costs reduce more the increase of private vehicle traffic than daily collected taxes. Thus, the proposal would increase the number of cars, the driven kilometers, required town space for roads and parking places and other traffic problems. Energy savings of around 400 to 500 kg of fuel per inhabitant annually can be made in cities with a high modal share of public transport, compared with cities relying mainly on the private car. ccording to report GHG decline must be higher in traffic than other sectors. In 2009 the European Parliament called to reduce GHG emissions by 25%-40% by 2020 and by 80% by 2050 compared to 1990 levels.

Terrafame before known as Talvivaara Mining Company

Sipilä government agreed to sell a share of state owned Talvivaara mine to Trafigura. Trafigura managers have dozens of connections in tax havens in Bahama, Malta, Luxemburg, Marshall Islands and Switzerland, in total in more than 150 tax havencompanies According to Finnwatch Finland loses 430-1400 million euros taxes from businesses tax planning. In TV discussion representative of Finnwatch pointed out that the tax payers have right to demand Sipilä to improve the tax collection efficiency.

Trafigura made a 75-million-euro investment via its fund management subsidiary, Galena Asset Management, to own a 15.5 % share in the nickel and zinc mine Terrafame in Talvivaara. Trafigura has joined the Russian energy company Rosneft to buy a share in the Indian company Essar Oil. Finland’s Minister of Economic Affairs Mika Lintilä was closely involved in efforts to attract a private investor to the mine.

Portfolios

There are six ministers from the Centre Party. The National Coalition Party and Finns Party have four ministers each.

Energy policy

Minister Olli Rehn supported in September 2016 the energy subsidy to heavy industry to compensate the EU’s Emissions Trading System expenses of oil and coal use costs to industry. It would cover just under 100 industrial facilities, with the biggest beneficiary being the forestry industry. 70 million of these funds will be taken from elederly care by dropping nurses from 0.5 to 0.4 per old person.

Economic Policy

Sipilä's government has struggled with Finland's poor economic performance, caused according to Paul Krugman and others by the constraints of its eurozone membership and aftershocks from the European debt crisis, but also by the decline of the paper industry, the fall of Nokia and a diminution in exports to Russia. Its attempts to address the problems through policies of spending cuts and reducing labour costs have been controversial, particularly cuts to education spending that are seen as threatening Finland's successful public education system. These austerity measures have partly been implemented due to European Commission pressure, which has urged Finland to improve its adherence to the Stability and Growth Pact and reform its labour market to improve competitiveness. On 22 July 2015, Sipilä announced his government's commitment to reducing Finnish wage costs by 5% by 2019, an internal devaluation caused by Finland's loss of the ability to devalue its currency to boost competitiveness.

There have been protests against the government's austerity measures.

Immigration Crisis

See also *European migrant crisis (Finland)

Mistaken facts in proposal to allow indirect securities holding

In December 2015 Finance minister Alexander Stubb claimed that 90% of civil servants consulted supported a controversial law proposal - while in fact only 10% had done so. 2 of 21 experts asked to give their opinion supported the idea. The law planned by the Sipilä government would have made it easier to hide the ownership of securities. Stubb apologize for his mistake to the parliament. The proposal was later cancelled.

Member of cabinet utilizing tax planning within EU

Foreign Trade and Development Minister Lenita Toivakka is related to a company that has established a Belgian holding company. Toivakka accused Social Democratic MP Timo Harakka of lying when he said in the parliament that the family business of Minister Toivakka had set up the holding company in Belgium for tax planning purposes. Toivakka later had to apologize and admit that some of her previous statements were misleading, although she maintained her hands were clean.

Katera Steel won a bid with state owned Terrafame mining company

Katera Steel Ltd, a company, where Prime Minister Juha Sipilä's two grownup sons held a 5% share, won a public bid from the state-owned Terrafame mining company a month before the Prime Minister approved a €100 million public funding for the mine. The won bid had no connection to new funding to keep the mine running, as the order would have been carried trough also in the case of shutting down the mine. The office of the Chancellor of Justice received over 10 complaints about a possible conflict of interest on Juha Sipilä's part. The Parliamentary Ombudsman ruled February 1st 2017 in favour of the Prime Minister and found no conflicts of interest in the matter.

In January and February 2017 three journalists, Jussi Eronen, Salla Vuorikoski and Susanne Päivärinta, resigned YLE based on disagreements with the editor in chief Atte Jääskeläinen on journalistic decisions. The case concerning Prime Minister Juha Sipilä has been named as one.

Trade promotion to India generated results for Finnish company

On an official trade promotion trip organized by Team Finland in 2016 February to India, one of the joining companies was Chempolis, a company where Prime Minister Sipilä's grown up children holds a 5% stake via their investment company Fortel Invest. Sipilä has founded Fortel investment in 1995 and sold his share to his children in June 2012. Chempolis soon announced a 110 million export contract from an oil company located in India. Finnish Attorney General's Office received four complaints from private citizens regarding the Prime Minister's role in promoting also the company.

Constitution

According to the Chancellor of Justice of Finland in December 2016 the law proposals of Sipilä government have major constitutional problems. According to the Chancellor of Justice criticize the government for attempting to hastily push through a host of new laws, some of which were found to be unconstitutional. None of the ministers have law degree.

According to Helsingin Sanomat the Constitutional problems in the objectives of Sipilä government have included following: Sipilä government aimed to release the tax evasions from responsibility of prosecutions. Sipilä government aimed to raise public funds with higher fines (double size). The intention of fines is not to finance the state expenses. Sipilä government aimed to make work obligations (forced labor) for unemployed persons. Sipilä government aimed obligatory interviews for unemployed persons by commercial companies. Sipilä government aimed to reduce inheritance tax that stumbled in the constitutional aspects.