Council

The task of the Council is to assess the appropriateness of targets set for economic policy, the extent to which those targets have been met, the effectiveness of the policy measures employed, the coordination of various policy areas and how these tie in with other areas of public policy. The Council weighs the success of economic policy with particular reference to economic growth and stability, employment and the long-term sustainability of public finances. The Council also evaluates the quality of the forecasting and assessment methods used in the preparation of economic policy.

Since the beginning of 2026, the Economic Policy Council has served as Finland’s Independent Fiscal Institution (IFI).

As Finland’s Independent Fiscal Institution, the Council is responsible for monitoring compliance with the Act on the Management of General Government Finances. As part of this role, the Council assesses the measures presented in the General Government Fiscal Plan and their adequacy in relation to the Government’s fiscal policy objectives, and endorses the macroeconomic forecasts prepared by the Economics Department of the Ministry of Finance for use in budget preparation. In addition, the Council monitors and assesses compliance with the net expenditure path under the EU fiscal framework and, where necessary, prepares assessments concerning the adequacy of measures related to the Excessive Deficit Procedure.

The Council publishes an annual assessment of economic policy and provides the statutory statements, assessments and reports required as part of its role as Finland’s Independent Fiscal Institution. As a rule, the Council does not comment continuously on economic policy developments during the year, but Council members may participate in public debate and present their own views.

The Council’s assessments of economic policy are mainly based on the analytical work carried out by the Council members and the secretariat. In addition, the Council draws on commissioned research and reports.

The Council consists of a Chair and four other members. The Chair and members must represent high-level academic expertise in different fields of economics or possess significant expertise in economic policy. The Government appoints the Chair and members for a four-year term on the proposal of the Ministry of Finance. Before making its proposal, the Ministry of Finance requests a joint nomination from the economics departments of Finnish universities.

The Council’s secretariat is based at the VATT Institute for Economic Research, which also provides administrative and support services for the Council.