The Nordic model

Finland is one of the few countries to successfully combine extensive welfare system with high competitiveness. The decision-making and deliverance of welfare services are decentralised in order to secure the effectiveness of the public sector. The Finnish public sector is split into central and local governments; the municipalities are highly independent and have an unlimited right to levy taxes on their inhabitants.

Manifold freedoms, joint guarantee

In 2017, there are 311 municipalities in Finland (295 in the continental Finland, excluding the Åland islands). The municipalities have been granted autonomy to develop new ways of providing services to the citizens. Despite the freedoms, the local government in Finland is not free to fail. It is stated in the Act of Bankruptcy that a Finnish municipality can't go into bankruptcy.

MuniFin's funding is guaranteed by the Municipal Guarantee Board. Every municipality in the continental Finland is a member of the Guarantee Board. The Guarantee Board has been established to safeguard the joint funding of municipalities.

Last modified: 
04/05/2017