Political Priorities

The economic and fiscal challenges facing the Nordic countries are closely linked to the structural, economic changes that the Nordic countries will face over the coming years. As small and export-oriented economies, the Nordic countries are affected to a large extent by international economic and fiscal developments, especially those which take place within the EU.

The Nordic countries have set ambitious climate goals. Achieving these goals will require an accelerated green transition across all Nordic economies and societies. A high-priority challenge here is to secure stable fiscal policy frameworks within the Nordic Region and internationally which can, efficiently and in a manner which is fiscally sustainable, encourage a cost-effective green transition that will also create jobs. This will require adaptable economies and labour markets, and the use of economic and fiscal policies as central tools to promote climate-friendly behaviours and the promotion of green solutions, and as a means of helping to ensure the effective allocation of private capital and investments. At the same time, it is also important to ensure that the green transition is implemented in a way that supports the Nordic labour-market model and promotes social cohesion, while also minimising unemployment and economic inequality and creating opportunities for all citizens of the Nordic Region.  

The Nordic countries will be facing large structural changes over the coming years that will create both new opportunities but also new challenges. Demographic changes in the form of ageing populations and a growing preference for working less are the results of greater prosperity in the Nordic countries, but these changes also place greater strain on public finances and necessitate reforms and initiatives that can promote greater participation in the labour market and higher levels of employment, and which can also help to make the Nordic Region even more tightly integrated. In addition, new technologies are developing at rapid pace, including artificial intelligence, which creates both new opportunities but also new threats. Nordic co-operation on economic and fiscal policy can contribute on the promotion of common solutions and policies to boost the resilience of the Nordic countries, and to strengthen the long-term growth potential of the region in a sustainable way.

At the same time, a worsening geopolitical reality and higher levels of strategic rivalry between the world’s countries and regions constitute a particular risk for the Nordic countries. As small, innovative and export-oriented nations the Nordic countries are dependent on stable international economic and financial conditions, as well as open international markets for trade and investment. The increased use of state aid in countries outside of the Nordic Region will weaken international competition, pose a challenge to innovative Nordic companies and potentially put pressure on the Nordic countries to use public funds for similar initiatives. Stronger co-operation and a common approach and understanding between the Nordic countries will be important if we are to address these common economic and fiscal challenges and strengthen the voice of the Nordic Region beyond its borders.

The Nordic economic and fiscal policy co-operation under the Council of Ministers for Finance is the primary framework for the exchange of experiences, co-ordination and promotion of a joint Nordic knowledge base that can bolster the preconditions of the Nordic countries with a view to ensuring economic development and prosperity, strengthen Nordic competitiveness and secure an inclusive green and digital transition of Nordic societies. The focus points for our co-operation in the 2025–2030 period will be on approaching common economic policy challenges, and support projects that can benefit the entire Nordic Region and provide proposals for stronger economic policy in the Nordic countries.

The Council of Ministers for Finance has adopted goals and sub-goals for the work to be undertaken in the 2025–2030 period. The political priorities guide all activities in the policy area of Nordic co-operation. This means that initiatives are to be developed on the basis of these objectives, and that their activities, outcomes and effects must bring about the change desired.