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Finland - Monitoring report

Date of the monitoring visit: 16 to 18 April 2024
Report adopted on: 15 October 2024
Files : Report CG(2024)47 | Recommendation 516 (2024)
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This report follows the fourth monitoring visit to Finland since the country ratified the European Charter of Local Self-Government in 1991.


It notes with satisfaction the overall positive application of the Charter’s principles in Finland, the establishment of a second tier of local government at regional level (“wellbeing services counties”), the extensive responsibilities of local authorities, and the effective collaboration between central and local governments.


At the same time, the rapporteurs express concern about the weak constitutional foundation for the new tier of local self-government, unclear consultation procedures for mandatory municipal mergers or boundary changes of municipalities, limited financial autonomy of wellbeing services counties, and the lack of a special status for Helsinki as the capital city.

The national authorities of Finland are therefore invited to reinforce the constitutional basis for the wellbeing services counties, enhance their financial autonomy, establish clear consultation procedures for municipalities facing compulsory boundary changes, and grant Helsinki a special status reflecting its role as the capital city.

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Article ratified Ratified with reservation Non ratified
Compliance Partial compliance Non compliance To be determined
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Article 2
Constitutional and legal foundation for local self government - Article ratified

The principle of local self government shall be recognised in domestic legislation, and where practicable in the constitution.

71. Article 2 requires the principle of local self-government to be recognized at domestic level in an ‘open’ and ‘express’ manner’, i.e., in written law. The practical and operational consequences of this recognition can be fully understood in the light of Article 11, according to which “the principles of local self-government as are enshrined in the constitution or domestic legislation” shall be protected by judicial
remedies that local authorities can activate. The constitutional entrenchment is considered to be “further desirable” by the Explanatory Report, but it is to be achieved “where practicable”, i.e. where the country has a written constitution and where there is a political consensus about doing so.
72. In Finland, the principle of local self-government is guaranteed under section 121 of the Finnish Constitution. As said above, this section establishes that: “Finland is divided into municipalities, whose administration shall be based on the self-government of their residents. Provisions on the general principles governing municipal administration and the duties of the municipalities are laid down by an Act. The municipalities have the right to levy municipal tax. Provisions on the general principles governing tax liability and the grounds for the tax as well as on the legal remedies available to the persons or entities liable to taxation are laid down by an Act. Provisions on self-government in administrative areas larger than a municipality are laid down by an Act. In their native region, the Sami have linguistic and cultural self-government, as provided by an Act”. Paragraph 1 refers to the municipal autonomy, while paragraph 3 to the self-government administrative areas larger than a municipality.
73. As said above, according to section 74 of the Constitution the Constitutional Law Committee is identified as the authoritative interpreter of the provisions of the Constitution, including section 121, when enacting laws. The Committee has developed an interpretation according to which section 121.1 of the Constitution has a core that consists of the most important aspects of municipal self-government and that cannot be interfered with in the ordinary legislative order. According to the established practice of the Constitutional Law Committee of the Parliament, the following features are considered fundamental characteristics of municipal self-government:
(a) The municipality has the right to take charge of its administration and finances independently. State authorities have no general power to control municipalities or to issue binding directives or administrative orders that may affect them. State authorities may intervene only to a limited extent as specifically provided by law enacted by Parliament.
(b) Municipal decision-making powers are held by the bodies elected by direct and secret ballot in municipal elections. The municipality may delegate these powers within the municipal organisation and for the purpose of inter-municipal cooperation.
(c) Municipal authority is general and broadly-based, but the exercise of public power in individual cases must be specifically contemplated in the law. An act of Parliament is needed to impose new functions and financial obligations on municipalities, and also to relieve them of existing functions.
(d) Municipalities have the right to levy taxes on their inhabitants and other local bodies subject to taxation. Each municipality determines its tax rate independently.
(e) A commensurability requirement is binding for any new legislation in that new responsibilities may be imposed on municipalities only if they are granted the proportionate and appropriate financial resources to carry out the new tasks.
74. With regards to municipalities, Finland complies with Article 2. On the contrary, the Constitution says very little about the status of regions or other territorial units. As it was pointed out by the Recommendation 396 (2017) and by the related Explanatory memorandum, Section 121 foresees the possibility of a second-tier self-government, without establishing any principle that can guide and bind the legislature: “Provisions on self-government in administrative areas larger than a municipality are laid down by Act”. Therefore, the self-government of the wellbeing services counties relies only on legislation, i.e. on the Act on Wellbeing Services Counties (611/2021).
75. Rapporteurs are fully aware that the WSCs reform was carefully elaborated and that amending the Constitution is a very delicate matter. Nevertheless, they encourage the national authorities to reinforce the constitutional basis for the Wellbeing Services Counties.
76. For these reasons, the rapporteurs conclude that the requirements of Article 2 of the Charter are partially complied with in Finland.

Article 3.1
Concept of local self government - Article ratified

Local self-government denotes the right and the ability of local authorities, within the limits of the law, to regulate and manage a substantial share of public affairs under their own responsibility and in the interests of the local population.

77. The main question that must be addressed under this heading is whether, in the present situation, Finnish local authorities regulate and manage a “substantial share of public affairs under their own responsibility and in the interests of the local population”. This provision requires an assessment which takes into account the rather “subjective” and relative nature of such concepts as “ability”, “a substantial share of public affairs”, “under their own responsibility” and “in the interests of the local population” since no official or universal method of measuring such substantial character has yet been developed. The question must be addressed considering the historical evolution, the culture and the constitutional traditions of the country under analysis. It is also closely linked to the assessment of the compliance with other parts of the Charter, such as Articles 4, 8 and 9.
78. In order to assess compliance with this provision, both legislative and factual aspects should be taken into consideration. According to OECD data, Finland is considered one the most decentralised countries in the world. All main social, healthcare and education services are performed by local authorities (municipalities or WSCs). Hence, the overall economic importance of the local sector is considerable. Municipality spending as a share of GDP (23%) and general government (40.1%) is among the highest in the OECD, well above the OECD average where subnational expenditure amounted to 17.1% of GDP and 36.6% of total public spending in 2020. Finland is surpassed only by some federal countries (Canada and Belgium) and by two Nordic unitary countries (Denmark and Sweden). Municipalities employ roughly 20% of the total Finnish workforce. Overall, subnational staff expenditure amounted to 73% of public staff expenditure in 2020, which is also amongst the highest of the OECD members, along with Denmark, Sweden and Japan, as with most federal countries. Staff expenditure represents above 40% of subnational government spending (versus 34.4% in the OECD).
79. At factual level, we could mention the Local Autonomy Index (LAI) country ranking 2014, considering Finland in the top group among European countries.
80. Therefore, Finnish municipalities do not raise any concern under Article 3.1. The situation of WSCs is quite different. As pointed out by the written replies of the Parliament to the questions of the rapporteurs, the Constitutional Law Committee has held that the common feature of all constitutional regulation concerning different forms of self-government is democracy. The Committee has however drawn attention to the fact that State control of the WSCs and the funding model used to finance them de facto narrows the decision-making power of their councils. According to the Committee, due to State control, restrictions concerning the organisation of the social and health services, and the funding model, the self-administration of WSCs remains quite thin. In this respect it should be noted that Articles 4.2, 9.3 and 9.8 do not apply to WSCs.
81. As the 2021 reform is still in its initial phase and the situation with counties may evolve, the rapporteurs would encourage Finnish authorities to move in the direction of making WSCs full self-government units, in complete compliance with the Charter. However, they consider the share of public affairs under the responsibility of subnational authorities as a whole to be substantial.
82. Therefore, the rapporteurs conclude that Finland complies with Article 3, paragraph 1 of the Charter.

Article 3.2
Concept of local self government - Article ratified

This right shall be exercised by councils or assemblies composed of members freely elected by secret ballot on the basis of direct, equal, universal suffrage, and which may possess executive organs responsible to them. This provision shall in no way affect recourse to assemblies of citizens, referendums or any other form of direct citizen participation where it is permitted by statute.

83. Article 3.2 is the main statement of the democratic principle in the provisions of the Charter. The right of self-government must be exercised by democratically constituted authorities. The concept of local autonomy does not involve the mere transfer of powers and responsibilities from central to local authorities but also requires local government to express, directly or indirectly, the will of the local population.
84. In Finland, municipalities are governed by a council which is elected by the local citizens every 4 years in fair and free elections. Executive bodies are elected by the council and are accountable to the council. Finland, as other Nordic countries, is at the very top of several democracy indices, thanks to high scores on electoral process and pluralism, political culture and political participation. The WSCs are ruled by directly elected councils and by an executive board, that is elected by the council and can be dismissed by the council.
85. Direct participation is highly encouraged in Finland. The LGA refers to to several means to allow residents to participate and exert influence in municipal activities (panels, users’ boards, independent planning by residents, etc.), together with youth councils, councils for the elderly and disability councils, which are compulsory bodies at local level from the beginning of the term to the election of the next council.
86. Therefore, the rapporteurs consider that Article 3, paragraph 2 is respected in Finland.

Article 4.1
Scope of local self government - Article ratified

The basic powers and responsibilities of local authorities shall be prescribed by the constitution or by statute. However, this provision shall not prevent the attribution to local authorities of powers and responsibilities for specific purposes in accordance with the law.

87. Article 4, paragraph 1, of the Charter requires that the basic powers and responsibilities of local authorities are prescribed by the constitution or by statute, so as to ensure predictability, permanence and protection for the benefit of local self-government. Therefore, the tasks of local authorities should not be assigned on an ad hoc basis and should be properly enshrined in written parliamentary legislation. Establishing local powers and competences by means of administrative regulation should be avoided and goes against the spirit of the Charter.
88. In Finland, the competences of the municipalities are set out in LGA and in a range of sectoral legislation. They include, as said above, education, children’s day care, culture, youth, libraries, town planning, land use, water and energy supply, waste management, environmental protection. In its written presentation, the Ministry of Finance mentioned 610 statutory tasks and 973 obligations on how to carry out the tasks. The WCSs competences are provided for by the Wellbeing Services Counties Act and by sectorial legislation. The areas of competence are social and health care and fire and rescue services.
89. Therefore, it appears to the rapporteurs that Article 4, paragraph 1, is respected in Finland.

Article 4.2
Scope of local self government - Article ratified

Local authorities shall, within the limits of the law, have full discretion to exercise their initiative with regard to any matter which is not excluded from their competence nor assigned to any other authority.

90. According to Article 4, paragraph 2, local authorities must have the right to exercise their initiative on matters not explicitly excluded from their competence by law. In addition, they must have “full discretion to exercise their initiative”. Restrictions on local bodies’ full discretion can also stem from management, fiscal and budgeting rules that require a sound legal basis for spending.
91. In Finland, the Local Government Act establishes that municipalities may take on any functions not undertaken by other public bodies (in practice State bodies or county councils); this is also a long-standing historical tradition. In addition, a series of special acts makes specific functions mandatory for local government, e.g., education, kindergartens, land use planning, etc.
92. Finnish municipalities provide a wide range of services to their residents. Most municipal tasks are statutory, and municipalities are assigned tasks only by first enacting a law. The statutory tasks of municipalities belong to the so called “specific branch” of municipal activity. Municipalities can also decide to take tasks based on local needs and demand. This is the so called “general branch” of the municipal activity and it is in the core of Finnish municipal self-government. There are no detailed legal criteria on the municipalities´ right to take voluntary tasks, but the municipality may not take over the central government’s tasks. According to the information received by the Ministry of Finance, the voluntary tasks represent about 10-20 % of all municipal tasks. There is the largest amount in municipalities between 40,000-100,000 inhabitants. They mostly concern economic activities, employment promotion, housing, financial support.
93. This paragraph does not apply to WSCs.
94. Therefore, the rapporteurs consider that Article 4 paragraph 2 of the Charter is respected in Finland.

Article 4.3
Scope of local self government - Article ratified

Public responsibilities shall generally be exercised, in preference, by those authorities which are closest to the citizen. Allocation of responsibility to another authority should weigh up the extent and nature of the task and requirements of efficiency and economy.

Article 4, paragraph 3 of the Charter articulates the general principle of subsidiarity. It establishes that “Public responsibilities shall generally be exercised, in preference, by those authorities which are closest to the citizen. Allocation of responsibility to another authority should weigh up the extent and nature of the task and requirements of efficiency and economy”.
In Finland, most of the public responsibilities are allocated at municipal level. The WSCs reform transferred the responsibilities for health, social and rescue services from the municipalities to the upper level of government exactly for providing services in a more efficient and suitable manner. Municipalities remain important service providers for those tasks that need to be exercised closer to citizens.
Therefore, the rapporteurs consider that Article 4, paragraph 3 of the Charter is respected in Finland.

Article 4.4
Scope of local self government - Article ratified

Powers given to local authorities shall normally be full and exclusive. They may not be undermined or limited by another, central or regional, authority except as provided for by the law.

Article 4, paragraph 4 provides that “Powers given to local authorities shall normally be full and exclusive. They may not be undermined or limited by another, central or regional, authority except as provided for by the law”. The law may certainly introduce limitations on the powers given to local authorities, but such limitations should be exceptional, based on objective reasons and interpreted narrowly. In addition, overlapping responsibilities can become a threat to local autonomy.
In Finland, local authorities are responsible for most of the social services, in a system where central government (and Parliament) has the overall responsibility for an equal and sufficient distribution of services all over the territory. In combination with their important share of overall public spending and their general dependence of the transfer of State money, this inevitably creates a level of tension between the ideal of local self-government and the real freedom of choice enjoyed by the municipalities. The increase in statutory provisions of individual rights can result in disproportionately large restrictions on the municipalities' scope of action. The Association of Finnish Local and Regional Authorities is especially concerned by the detailed State regulation: they support a request for deregulation, in the meaning of taking away norms establishing some standards, asking for a result-oriented system.
The rapporteurs consider that Article 4, paragraph 4 of the Charter is respected in Finland.

Article 4.5
Scope of local self government - Article ratified

Where powers are delegated to them by a central or regional authority, local authorities shall, insofar as possible, be allowed discretion in adapting their exercise to local conditions.

 

Article 4, paragraph 5 refers to delegated responsibilities, establishing that local authorities shall, insofar as possible, be allowed discretion in adapting their exercise to local conditions. The delegation of powers between different levels of government is a long-standing tradition in many European States. Central government benefits from the territorial network formed by local and regional authorities: they are closer to citizens and offer local knowledge, they reflect local conditions and provide economies of scale. Local bodies and services therefore discharge delegated functions on behalf of higher-level authorities, most commonly on behalf of the State.
Both during the visit and the consultation procedure, no issues have been raised by the interlocutors on the delegation of competences, which appears to satisfy the requirements of this article in practice.
Therefore, the rapporteurs consider that Article 4, paragraph 5 is respected in Finland.

Article 4.6
Scope of local self government - Article ratified

Local authorities shall be consulted, insofar as possible, in due time and in an appropriate way in the planning and decision-making processes for all matters which concern them directly.

 

Article 4, paragraph 6 of the Charter provides that “local authorities shall be consulted, insofar as possible, in due time and in an appropriate way in the planning and decision-making processes for all matters which concern them directly”.
Consultation is a key principle of the Charter. The Charter does not define or prescribe the forms of consultation or substantially regulate the consultation process. Since its basic function is to establish the general approach and framework for consultations, it may be concluded that the main process of consultation is dependent on three basic conditions: (a) local authorities should be able to obtain full information on decisions and policies that concern them directly, and this information should be available at the initial stage of the decision-making process; (b) local authorities should have the possibility of expressing their opinion on decisions and policies before these become legally binding documents; and (c) local authorities should have the time and ability to prepare recommendations or alternative drafts and submit them for consideration.
In Finland, consultation with the Association of Finnish Local and Regional Authorities is an integral part of the local self-government system. As see above, this role is fully recognized by legislation (sections 11-13 of LGA) and by Parliament’s Rules of Procedure, according to which committees handling government proposals and bills may hear experts’ opinions. This usually means that organizations, bodies or institutions that will be affected by the bill are heard by the committee: this includes the AFLRA and individual municipalities. A special body, the Kuthanek, is in charge of local government participation to the government decision-making. The Board operates in connection with the Ministry of Finance, discussing legislation concerning municipalities, matters of principled importance and far-reaching municipal administration and finances, and the coordination of central and local government. The AFLRA has been fully involved in all the stages of the WSCs reform, including the several working groups, which comprised representatives of local authorities.
Therefore, the rapporteurs consider that Article 4, paragraph 6 is complied with in Finland.

Article 5
Protection of local authority boundaries - Article ratified

Changes in local authority boundaries shall not be made without prior consultation of the local communities concerned, possibly by means of a referendum where this is permitted by statute.

 

This article requires that local communities should be consulted in case of changes of local authorities’ boundaries. It is therefore a mandatory procedural requirement that no change in local boundaries may be adopted without consultation, which must take place at a timely stage before a final decision on the matter is made. Consequently, a boundary change carried out without consulting the local community would be in breach of Article 5.50
In Finland, Section 7 of the Municipal Boundaries Act establishes the obligation of each municipality to take care of the participation of the residents in the preparation of the merger proposal, in case of voluntary mergers. Section 12 provides for residents’ participation in case of transfer of part of a municipality to another municipality. It is up to the municipality to establish in which form to organise the consultation. Referendum can be an option, according to Chapter 5 of the Local Government Act.
A special procedure is provided by Section 16a of the Municipal Boundaries Act, in case of a municipality in a particularly difficult financial position. According to Section 18.3, the government may decide “to change the municipal division concerning a municipality in a particularly difficult economic situation, despite the opposition of the councils of the municipality or municipalities subject to the change, if the change is necessary to secure the statutory services of the residents of the municipality in a particularly difficult economic situation”. This procedure raised several cases in courts, as it was pointed out by the previous monitoring report, which referred to the discussion existing back then on the possibility to reform the system of obligatory mergers and compulsory changes of local authorities’ boundaries.
Although no issues have been raised during the monitoring visit, rapporteurs consider that according to the Charter, no change in local boundaries may be adopted without consultation of local population.
During the consultation procedure, the Ministry of Finance informed the rapporteurs that the process of preparing municipal amalgamations in Finland is complex, especially for municipalities facing significant economic challenges. It involves an evaluation group's report, and if amalgamation is recommended, a special reporter is appointed. The Ministry pointed out that these procedures are transparent, involving consultations and public hearings and that the Municipal Division Act emphasises enhancing services and citizen participation. Furthermore, citizens can initiate a referendum on amalgamation as provided by section 25 of the Local Government Act.
The Contemporary Commentary considers that: “Consultation according to the Charter does not rule out obligatory mergers or boundary changes, but the relevant procedures must be laid down by law”. As stated in the Explanatory Memorandum to Article 5 of the Charter, “Whilst in most countries it is regarded as unrealistic to expect the local community to have power to veto such changes, prior consultation of it, either directly or indirectly, is essential”. This does not seem to be the case for the obligatory mergers and compulsory changes of local authorities’ boundaries in case of a municipality in a particularly difficult financial position, provided for by section 16a of the Finnish Municipal Boundaries Act. In the case of section 16a, the procedure (as it is set out in section 18.3) does not clearly require, unlike what is established by section 18.2 in the case of section 16, a consultation of the local communities concerned.
The rapporteurs consider that this provision can be amended in the forthcoming adjustment measures that have been announced by the government, in order to fully address the impact of the WSCs reform on municipalities and municipal finances.
Therefore, the rapporteurs consider that Article 5 is partially complied with in Finland.

Article 6.1
Appropriate administrative structures and resources for the tasks of local authorities - Article ratified

Without prejudice to more general statutory provisions, local authorities shall be able to determine their own internal administrative structures in order to adapt them to local needs and ensure effective management.

Article 6, paragraph 1 of the Charter provides that local authorities shall be able to determine their own internal administrative structure: the power to organise their own affairs is accordingly a part of the autonomy enjoyed by local entities.
In Finland, the municipalities are free to define their administrative structures, the status of their staff and the arrangements for their training and remuneration. Municipalities may hire their own staff, decide organisational structure, fix salaries, establish legal entities/enterprises.
Therefore, the rapporteurs consider that the requirements of Article 6, paragraph 1 are satisfied in Finland.

Article 6.2
Appropriate administrative structures and resources for the tasks of local authorities - Article ratified

The conditions of service of local government employees shall be such as to permit the recruitment of high-quality staff on the basis of merit and competence; to this end adequate training opportunities, remuneration and career prospects shall be provided.

Article 6, paragraph 2 of the Charter refers to the conditions of service of local government employees: they shall be such as to permit the recruitment of high-quality staff on the basis of merit and competence. The power to hire their own staff and set employee remuneration is a relevant factor highlighting the organisational and institutional autonomy of local governments.
Basically, the municipalities have a large degree of control over employees, but this is reduced through competence requirements and staffing standards, e.g., by not being able to move resources between businesses and sectors. Lack of personnel and/or expertise is one of the major challenges facing the Finnish local authorities, especially in the Northern regions, such as Lapland. This is already, and will become, an ever-increasing challenge in both the short and long term.
In conclusion, the rapporteurs consider that Article 6, paragraph 2 of the Charter is respected in Finland.

Article 7.1
Conditions under which responsibilities at local level are exercised - Article ratified

The conditions of office of local elected representatives shall provide for free exercise of their functions.

Article 7, paragraph 1 seeks to ensure that citizens are free to serve as elected representatives and are not prevented from holding political office owing to financial or material considerations. Nobody should be deterred from standing for election at local level; once elected, local councillors should not be prevented from discharging their duties effectively.
In Finland, local representatives are elected for four years and cannot be recalled. The councils are expected to serve the entire period of four years. Should a need for replacement of a member occur, this would take place within the same electoral list by appointment of the deputy councillor (section 17 LGA).
Finnish legislation provides for the free exercise of the functions of local elected representatives. One element of concern is the practice of multiple mandate. During the monitoring visit, the delegation was informed that many elected representatives hold two or three chairs, as members of the municipal council, members of the WSCs councils and members of the Parliament. Although the multiple mandate cannot be considered as a limitation of the free exercise of the functions, however it can be an obstacle to the suitable exercise of the functions.
During the visit, the delegation was also informed of the growing tendency for hate speech and attacks on local elected representatives, especially women and young people, although, comparing with other Nordic countries, there is probably less harassment in Finland. The Finnish Local and Regional Authorities is especially committed to improve the culture of discussion.
The rapporteurs consider that Article 7, paragraph 1 of the Charter is respected in Finland.

Article 7.2
Conditions under which responsibilities at local level are exercised - Article ratified

They shall allow for appropriate financial compensation for expenses incurred in the exercise of the office in question as well as, where appropriate, compensation for loss of earnings or remuneration for work done and corresponding social welfare protection.

Article 7, paragraph 2 refers to an appropriate financial compensation for elected representatives. The aim of the paragraph, in connection to paragraph 1, is to ensure that local elected representatives receive “appropriate financial compensation” and to avoid the conditions of office preventing, limiting, or even excluding potential local candidates from standing for office because of financial considerations.
In Finland, all municipal councils and county councils are in charge of adopting regulations for remuneration. Persons who have consented to take up the position may be elected to a full-time or part-time position (LGA Section 80). Full-time elected officials are entitled to leave of absence from their jobs for the duration of the full-time position. The local council shall decide on the monthly pay and remuneration of full-time and part-time elected officials. Full-time and part-time elected officials have the right to annual leave, sick leave and family leave, as well as occupational health care services, on the same basis as local government officers. The level of fees and compensation is decided by each municipal council (LGA section 82).
Elected officials shall be paid: 1. meeting fees; 2. compensation for loss of earnings and for costs incurred in engaging a substitute, arranging childcare or for other similar reasons arising from the position of trust; 3. compensation for travel costs and a per diem allowance. Elected officials may also be paid a fee for a fixed period and other separate fees.
The rapporteurs consider that Article 7, paragraph 2 is respected in Finland.

Article 7.3
Conditions under which responsibilities at local level are exercised - Article ratified

Any functions and activities which are deemed incompatible with the holding of local elective office shall be determined by statute or fundamental legal principles.

Article 7, paragraph 3, deals with compatibility between the holding of a representative position at local level and other activities, either public or private, establishing that the “functions” and “activities” that cannot be made compatible with holding a local position once the candidate has been elected shall be determined by statute or fundamental legal principles.
In Finland, the incompatibilities are determined by several legal provisions. Among them, sections 72-73 LGA and sections 77-78 of the WSCs Act.
As mentioned above, multiple mandates are permitted in Finland, allowing elected representatives to simultaneously hold national, county, and municipal elected positions. This practice, however, has raised concerns among some interlocutors, who argued, for instance, that combining county and national (MP) mandates could lead to potential conflicts of interest. Since decisions regarding county financing are made at the national level, county councillors who are also members of Parliament might find themselves in a privileged position. Cotemporary commentary points out that the “practice of simultaneous office-holding might adversely affect the work of the elected representatives, might create a conflict of interest and would not satisfy the principles of good governance”.
Given that the risk of conflicts of interest due to simultaneous office-holding does not appear to have materialised in Finland, the rapporteurs consider that Article 7, paragraph 3 is currently being complied with. Nevertheless, they encourage Finnish authorities to remain vigilant and to engage in discussions about the issue of multiple mandates, with a view to potentially eliminating this practice in the future.

Article 8.1
Administrative supervision of local authorities' activities - Article ratified

Any administrative supervision of local authorities may only be exercised according to such procedures and in such cases as are provided for by the constitution or by statute.

Article 8 of the Charter deals with supervision of local authorities. According to Article 8, paragraph 1, any administrative supervision of the activities of local authorities must be exercised according to such procedures and in such cases as are provided for by the constitution or by statute. The Charter establishes an important principle here in the area of inter-governmental supervision of local authorities: any form of such supervision must be provided for by the constitution or by statute, i.e., the Charter introduces the legality principle into the supervision of a local authority.
In line with the requirements of the Charter, in Finland the rules governing the supervision over local authorities and the powers of the central authorities concerned are determined by the legislation, in Chapter 2 of the Local Government Act (section 10).
Therefore, the rapporteurs consider that Article 8, paragraph 1 of the Charter is respected in Finland.

Article 8.2
Administrative supervision of local authorities' activities - Article ratified

Any administrative supervision of the activities of the local authorities shall normally aim only at ensuring compliance with the law and with constitutional principles. Administrative supervision may however be exercised with regard to expediency by higher-level authorities in respect of tasks the execution of which is delegated to local authorities.

According to Article 8, paragraph 2, of the Charter, the supervision over local authorities can only aim at ensuring compliance with the law and constitutional principles. Expediency control can be used only in cases of delegated tasks.
In Finland, supervision aims at controlling only the legality of municipal decisions and service provision (see above). No issues have been raised during the monitoring visit.
Therefore, the rapporteurs consider that Article 8, paragraph 2, of the Charter is respected in Finland.

Article 8.3
Administrative supervision of local authorities' activities - Article ratified

Administrative supervision of local authorities shall be exercised in such a way as to ensure that the intervention of the controlling authority is kept in proportion to the importance of the interests which it is intended to protect.

Article 8, paragraph 3, deals with the way in which the supervision is exercised in practice, and requires compliance with the principle of proportionality. Under the principle of proportionality, the regional or State body should intervene only to the extent necessary, taking into account the relevance of the public interest at stake, or the seriousness of the legal violation allegedly committed by the local authority.
In Finland, no issues have been raised during the monitoring visit. Nor the financial supervision (see above) raises any special concern by local authorities. In addition, the delegation was told that there have been very few court cases regarding the municipalities’ exercise of their powers. This is a result of the internal audit system and of the interaction with the several State supervision authorities, which include the Parliamentary Ombudsman, the Chancellor of Justice, the National Audit Office, the Ministry of Finance, the Regional Administration Agencies.
Therefore, the rapporteurs consider that Article 8, paragraph 3, of the Charter is respected in Finland.

Article 9.2
Financial resources of local authorities - Article ratified

Local authorities' financial resources shall be commensurate with the responsibilities provided for by the constitution and the law.

Another basic principle, established in Article 9, paragraph 2, requires that local authorities should have sufficient financial resources in proportion to the responsibilities assigned to them by law. This paragraph enshrines the so-called “principle of commensurability” of local authorities’ financial resources. This means that the resources available to local authorities should be sufficient and commensurate with their functions and tasks. To this purpose, any transfer of powers and tasks should be based on careful calculation of the actual service delivery costs to be met by local authorities. The costs of mandatory and delegated tasks might include several factors (such as the socioeconomic structure of residents) in order to produce more precise calculations and avoid arbitrary political decisions.
This paragraph is respected as for municipalities, whereas it is not respected concerning well-being counties, which are fully covered by this paragraph, as no declaration was made by the Finnish government to exclude its application to the WSCs.
The principle of adequate financial resources is included in municipal self-government, which is protected by the Constitution of Finland. According to the principle of adequate financial resources, the statutory duties defined for municipalities shall not undermine the operating conditions of municipalities in a manner that would jeopardise their ability to independently decide on their finances and thereby also their government. Therefore, legal provisions on the duties of municipalities must also ensure that municipalities have adequate and commensurate financial capacity to cope with these duties.
The principle of adequate financial resources is laid down in the LGA, section 12, which provides that a programme for local government finances shall be prepared as part of the negotiation process between central and local government. Preparation of the programme shall form part of the preparatory work for the General Government Fiscal Plan and the central government’s budget proposal. Section 12, subsection 3 provides that the programme for local government finances shall include an assessment of the adequacy of funding for meeting the duties of municipalities (principle of adequate financial resources). The programme shall contain an assessment of changes in the municipalities’ operating environment and demand for services, and in the functions of local government, and shall provide an estimate of the trend in local government finances. Local government finances shall be assessed as a whole, as part of general government finances and in terms of different groups of municipalities. The assessment shall distinguish between the statutory and other functions of municipalities and shall assess the cost-effectiveness of the activities of municipalities.
The delegation was informed that there is a structural imbalance in revenue and expenditure in municipal finances. Ministry of Finance public finance forecast (finances according to national accounts) from spring 2024 states that there is some 0.5-0.7 % deficit in ratio to GDP in municipal sector. Following the social and health care reform (which meant a reduction in the range of tasks of municipalities), municipalities have fewer opportunities to adjust the expenditure, so imbalance means possible tax increases and strict budget discipline in the municipal finances in the coming years. Divergence between municipalities is also increasing. All new or extended duties and obligations must be compensated with a 100% central government transfer.63 Also, according to the Government Programme, the central government undertakes to compensate municipalities for all new functions and obligations imposed on them.
According to the Government Programme, the system of municipal financing and central government transfers to municipalities will be overhauled to reflect the municipalities’ new role and the situation following the completion of the health and social services reform and the reform of public employment and economic development services.64 The intention is that the new legislation could enter into force on 1 January 2026.
As for the WSCs, the first year of operation of the wellbeing services counties was challenging and the counties were significantly in deficit. According to the Finnish government, one reason behind the deficit was the fact that the net costs of health, social and rescue services transferred from municipalities to WSCs counties were in final financial statements of municipalities more than was estimated in the original transfer. The final correction of financing was done in 2024. In addition, the wellbeing services counties’ expenditure grew very quickly in 2023. In 2024 the wellbeing services counties will remain significantly in deficit. The financial situation will be improved by the adjustment measures they take and, in addition, the increase in prices will slow down. In 2025, the deficit will decrease as the ex-post revision increases central government funding.65 Ministry of Finance public finance forecast (finances according to national accounts) from spring 2024 states that there is some 0.6 % deficit in ratio to GDP in wellbeing services counties in 2023-2024. In 2025-2027 the deficit is some 0.1-0.2 %.
According to the information received by the delegation, need for adjustment measures is considerable in WSCs, as the financial plans of the counties must be prepared in accordance with the Act on Wellbeing Services Counties (611/2021) in such a way that the finances are in balance or in surplus at the latest at the end of the year following the second budget. In the next few years, the wellbeing services counties will be subject to many changes in tasks and obligations. The adjustment measures decided on by the Government will reduce central government funding for the wellbeing services counties in line with the reduction in expenditure but, on the other hand, the changes may ease the wellbeing services counties’ expenditure pressures as the need for personnel decreases.
During the consultation procedure, the Ministry of Finance emphasized that deficits at the municipal and county levels are managed through legislative measures. The Ministry of Finance is responsible for ensuring sufficient economic balance to provide vital services to all residents nationwide. This will be achieved in close cooperation with municipalities and counties, based on the Local Government Act and the Act for Wellbeing Services Counties, particularly in sections addressing specific economic challenges.
In the light of the above, the rapporteurs consider that Article 9, paragraph 2, of the Charter is partially respected in Finland.

Article 9.8
Financial resources of local authorities - Article ratified

For the purpose of borrowing for capital investment, local authorities shall have access to the national capital market within the limits of the law.

Article 9, paragraph 8, refers to the access to the national capital market for the purpose of borrowing for capital investment. Access to national capital markets is important for local authorities to finance investment projects necessary for the further development of the local area because in many cases the amount of their own “ordinary” resources is not sufficient to cover all the projects and plans decided on by local authorities to satisfy local needs. However, like other rights enshrined in the Charter, this is not absolute and must be reconciled with the general policy on public sector spending and debt. This is why the Charter clarifies that the access must take place “within the limits of the law”. Moreover, as a result of the recent economic crisis, many countries have introduced austerity measures to deal effectively with public deficits, so access to the national capital market should be analysed in the context of national fiscal policy and the governance of public debt.
In Finland, municipalities can take out loans, and legislation establishes certain requirements for responsibility. Municipalities are free to borrow through bonds and loans to finance any type of operation. Local debt is below the OECD average (27.9% of GDP and 20.2% of public debt in 2020) but on par with the average for OECD unitary countries (14.5% of GDP and 10.5% of public debt).69 In 2020, local debt was made up of financial debt (73%) and other accounts payable (27%). Most municipal loans are granted by MuniFin (Municipality Finance Plc), which is one of Finland’s largest credit institutions. The company is owned by Finnish municipalities, the public sector pension fund Kevaand the Republic of Finland.
This paragraph does not apply to well-being counties.
Therefore, the rapporteurs consider that Article 9, paragraph 8, of the Charter is respected in Finland.

Article 9.7
Financial resources of local authorities - Article ratified

As far as possible, grants to local authorities shall not be earmarked for the financing of specific projects. The provision of grants shall not remove the basic freedom of local authorities to exercise policy discretion within their own jurisdiction.

Article 9, paragraph 7, of the Charter establishes that “As far as possible, grants to local authorities shall not be earmarked for the financing of specific projects. The provision of grants shall not remove the basic freedom of local authorities to exercise policy discretion within their own jurisdiction”.
Central transfers to municipalities are formula based and the system consists of revenue equalisation and cost equalisation. Revenue equalization is based on tax capacity and not actual tax revenue. Furthermore, revenue equalisation equalises transfers, not actual tax revenues. Cost equalisation takes into account differences in service needs and other factors affecting the cost of service provision (population, geographic remoteness, number of pupils, age-specific cost coefficients for services, etc.). Equalisation transfers are non-earmarked block grants, i.e. municipalities are free to allocate the total amount of grants as they wish. As for WSCs, the grants they receive are aimed at fulfilling their specific duties in the fields of social, health and rescue services. Nevertheless, they cannot be considered as earmarked, as the WSCs decide on the allocation of the State funding they receive, as stated in section 4 of the Act on the Funding of Wellbeing Services Counties (617/2021).
Therefore, the rapporteurs consider that Article 9, paragraph 7 of the Charter is respected in Finland.

Article 9.6
Financial resources of local authorities - Article ratified

Local authorities shall be consulted, in an appropriate manner, on the way in which redistributed resources are to be allocated to them.

Article 9, paragraph 6 of the Charter refers to a general principle of consultation, as enshrined at Article 4.6. In this case, consultation is required on the way in which redistributed resources are to be allocated to local authorities by other levels of government. Under Article 9.6, consultation is not merely a compulsory procedure that has to take place in a timely manner before a final decision is made. It must also cover the manner in which a decision is made and the criteria for doing so, not only the decision itself.
 As see above, consultation between the national institutions and the Association of Finnish Local and Regional Authorities (Kuntaliitto) is the pillar of the local self-government system. A special Advisory Board for Local Government Finances and Administration (Kuthanek) is in charge of local government participation to the government decision-making. The Board operates in connection with the Ministry of Finance. According to section 13 of the LGA, the negotiation procedure between the State and municipalities includes the handling of matters concerning the finances of municipalities. The task of the Board is to monitor and evaluate the development of the municipal economy and to ensure that the municipal economic program is taken into account in the preparation of legislation and decisions concerning municipalities.
Therefore, the rapporteurs consider that Article 9, paragraph 6 of the Charter is respected in Finland.

Article 9.5
Financial resources of local authorities - Article ratified

The protection of financially weaker local authorities calls for the institution of financial equalisation procedures or equivalent measures which are designed to correct the effects of the unequal distribution of potential sources of finance and of the financial burden they must support. Such procedures or measures shall not diminish the discretion local authorities may exercise within their own sphere of responsibility.

Article 9, paragraph 5 addresses the question of the financial situation of municipalities that are financially disadvantaged due to their being located in economically or geographically weak areas (transition, mountain or island regions), or simply because they are too small to obtain the amount of resources needed to perform their tasks.
172. In Finland, the equalisation system is regulated by section 26 of the Act on Central Government Transfers to Municipalities for Basic Public Services (618/2021). The equalisation mechanism equalises the differences in the municipalities' tax revenue base in order to secure the financial conditions for all municipalities to provide equal basic services to their residents with a reasonable municipal tax burden and payment level. A municipality is granted an increase in the state share based on tax revenues (equalisation allowance) if the municipality's calculated tax income per inhabitant is lower than the amount obtained by dividing the total calculated tax income of all municipalities by the total number of inhabitants of the municipalities (equalisation limit). The municipality receives an equalisation supplement of 80% of the difference between the equalisation limit and the municipality's calculated tax income per inhabitant. If the municipality's calculated tax income per inhabitant exceeds the equalisation limit, an equalisation deduction is made to the municipality's state share. The equalisation deduction is 30% of the euro amount per inhabitant that exceeds the equalisation limit, plus the natural logarithm of the said excess. Equalisation factors are also taken into account in the Act on the Funding of Wellbeing Services Counties (617/2021).
During the meetings, most interlocutors both from local governments and national government agreed on the fairness of the equalisation system.
Therefore, the rapporteurs consider that Article 9, paragraph 5 of the Charter is respected in Finland.

Article 9.3
Financial resources of local authorities - Article ratified

Part at least of the financial resources of local authorities shall derive from local taxes and charges of which, within the limits of statute, they have the power to determine the rate.

Article 9, paragraph 3, requires that at least part of the financial resources of local authorities must derive from local taxes of which, within the limits of statute, they have the power to determine the rate. The Charter does not state that a local authority’s own resources must contain a uniform proportion of local taxes, but it does make it mandatory for “at least” part to derive from local taxes and charges. This part should be large enough to ensure the greatest possible financial independence of local authorities.
As see above, own-source revenues (taxes, tariffs and fees, property income) of municipalities account for nearly 70% of subnational revenue, and 15% of GDP, giving municipalities considerable autonomy over their revenue. Most municipal taxes are own-sourced, except the corporate income tax (CIT), which is shared with the central government. The CIT share redistributed to municipalities is regularly readjusted to adapt to the municipal sector economy. In 2020, it accounted for 8.7% of subnational tax revenue.
The main source of own tax revenue is the municipal income tax (83% of subnational tax revenue and 8.7% of GDP in 2020). The central government determines the municipal income tax base, but municipalities have full control over the rate. Municipal income tax is a flat rate tax, although central government policy for tax allowances for persons with low incomes has made the local tax a progressive tax. The revenue losses of these allowances are compensated to municipalities through the grant system.
Municipalities also levy property taxes, which consist of five taxes: the general real estate tax, the tax for permanent residential buildings, the tax for other residential buildings, the tax for power stations and tax for nuclear power stations (the most important being the general real estate tax and the tax for permanent residential buildings). Recurrent property taxes amounted to 8.0% of subnational tax revenue and 0.8% of GDP in 2020. In addition, municipalities can put a special tax on unbuilt land. This tax is voluntary except in the 14 municipalities of the Helsinki metropolitan region, where the municipalities are obliged to apply.
This paragraph does not apply to well-being counties.
Therefore, the rapporteurs consider that Article 9, paragraph 3, of the Charter is respected in Finland.

Article 9.1
Financial resources of local authorities - Article ratified

Local authorities shall be entitled, within national economic policy, to adequate financial resources of their own, of which they may dispose freely within the framework of their powers.

Article 9, paragraph 1, of the Charter establishes two basic principles in the area of finance. First, local authorities should have their own financial resources; the right to “adequate” resources is not absolute but has to be exercised “within national economic policy”. Second, they should be free to decide how to spend those resources.61 This freedom takes the form of various spending decisions, the most important being the adoption of an annual budget. Any limits and restrictions imposed by higher authorities on local authorities should be specified and justified and aim at ensuring macroeconomic stability and sound.
This paragraph is respected in Finland as for municipalities, whereas it is not respected concerning well-being counties, which are fully covered by this paragraph, as no declaration was made by the Finnish government to exclude its application to the WSCs.
As see above, the financial resources of the municipalities are adequate, an important part comes from local taxes and the municipalities may decide their allocation.
According to the information provided by the Finnish government, the wellbeing services counties finance their activities mainly with central government universal funding (90%). In addition, the counties receive central government transfers, client fees and other operating income as well as financial income. At the national level, central government universal funding to wellbeing services counties totals EUR 24.6 bn in 2024. Annually the funding is affected by rising costs (index adjustment), the anticipated increase in the need for services, and changes to tasks.
During the consultation procedure, the Ministry of Finance agreed that some economy-driven challenges were facing new counties. In this respect, it pointed out that reform's preparation was highly complex, and the financing formula, along with prolonged periods of special circumstances, proved as challenging as anticipated. Although the calculations have been open and transparent, they are still striving to achieve balance and normality following the initial phase of the reform and the aftermath of COVID-19, which introduced specific exceptions and impacted the calculations. It added that the ministries have endeavored to build trust during negotiations with the counties, achieving notable success and that there is strong confidence that economic balance will improve in a few years. A thorough evaluation of the reform is essential, and readiness to take corrective measures has been demonstrated, relying heavily on the well-established dialogue between key stakeholders.
In the meantime, the rapporteurs consider that Article 9, paragraph 1, of the Charter is partially respected in Finland.

Article 9.4
Financial resources of local authorities - Article ratified

The financial systems on which resources available to local authorities are based shall be of a sufficiently diversified and buoyant nature to enable them to keep pace as far as practically possible with the real evolution of the cost of carrying out their tasks.

Article 9, paragraph 4, refers to the need for the resources available to local authorities to be of a sufficiently diversified and buoyant nature to enable them to keep up as far as practically possible with the actual changes (increases) in the costs for carrying out their tasks.
In Finland, the revenues of municipalities may come from different sources (own taxes and fees, transfers, other sources). Municipalities may adapt their own income to the different circumstances: for instance, if the local tax intake goes down for general economic reasons, the local authority may decide to increase local fees and charges paid by local service users (especially in urban areas) as a way to offset the decline.
As for well-being counties, the picture is completely different, as almost all their funding comes from State transfer, as mentioned above.
During the consultation procedure, the Ministry of Finance agreed that that municipalities have a broader revenue base compared to counties. It pointed out that both revenue structures require careful evaluation and periodic updating, with necessary adjustments to certain elements. It informed the rapporteurs that the review of the State Grant system for municipalities was underway, and the proposals would address aspects of the municipal revenue structure, potentially leading to some limited adjustments. A parliamentary report on regional taxation was previously conducted, but it did not garner significant political support. This was primarily due to the need to consider public taxation as a whole and control the overall tax rate of public finance. During the early phase of the reform implementation, regional taxation was viewed as too complex and risky. In the current phase, the Government is focused on achieving better balance in public finance. The reform implementation is being evaluated, using standard economic forecasting tools to define any necessary adjustments.
In the light of the foregoing, the rapporteurs consider that Article 9, paragraph 4, of the Charter is partially respected in Finland.

Article 10.1
Local authorities' right to associate - Article ratified

Local authorities shall be entitled, in exercising their powers, to co-operate and, within the framework of the law, to form consortia with other local authorities in order to carry out tasks of common interest.

Article 10 of the Charter covers the possibility of co-operation between local authorities and their right to associate, at both national and international level.
Article 10, paragraph 1, refers to types of cooperation aimed at carrying out tasks of common interest. Under Article 10.1, local authorities firstly have a general right to co-operate with one another in order to deliver local services or discharge their responsibilities. Inter-municipal cooperation (or cooperation at other levels of local government) is a fundamental tool for local authorities in terms of delivering services, in view of the fact that many of them are too small or too weak (financially speaking) to deliver all the services they are supposed to or to carry out any meaningful local strategy or policy.
This general entitlement to cooperate with other local entities is supplemented by a more specific right, namely the right to “form consortia”, i.e. to create separate organisations. Although the Charter only mentions “consortia”, the specific right to create joint institutional structures, separate from the participating local authorities, may take various forms.
As Finland’s regional government structure has historically been weak, inter-municipal collaboration has been an essential part of municipalities’ activities for decades. Municipalities often seek economies of scale by establishing inter-municipal utility companies and joint municipal authorities to provide services ranging from water management and public transport to education and – before the establishment of the WSCs – healthcare. Intermunicipal cooperation has been a common way to arrange public services in particular in case of the smallest municipalities. While most inter-municipal cooperation is voluntary, cooperation is mandatory in regional development and regional land use planning, where municipalities must form joint authorities (regional councils).
Therefore, the rapporteurs consider that Article 10, paragraph 1 of the Charter is fully respected in Finland.

Article 10.2
Local authorities' right to associate - Article ratified

The entitlement of local authorities to belong to an association for the protection and promotion of their common interests and to belong to an international association of local authorities shall be recognised in each State.

In this paragraph the Charter clearly recognises and sets out another right of local authorities: that to belong to (a) a national association for the protection and promotion of their common interests; and (b) an international association of local authorities.
The “associations” referred to in paragraph 2 are different from those mentioned in paragraph 1. Those mentioned in Article 10.1 are set up for the delivery of local services, plans or projects and are instruments for discharging duties and responsibilities. Conversely, those referred to in Article 10.2 are instruments for the promotion of common interests. These associations play a fundamental role in representing and defending the rights, powers and interests of local authorities and they carry out many activities on behalf of them all (not only in favour of their members).70
In Finland, the Association of local and regional authorities (Kuntaliitto) is one of the most powerful interest organisations. The membership consists of Finland’s 309 cities and municipalities. Other parties involved in the activities include regional councils, other joint municipal authorities, as well as limited companies that are under local government control. The Association employs 130 highly qualified experts in the fields of legal affairs, finances, economic vitality, democracy, the environment, information society, education, culture. The core tasks of the Association are interest representation, development and services.
Wellbeing services counties do not have an association yet, but they do have a company, Hyvinvointialueyhtiö Hyvil Oy - HYVIL, whose board is made up by representatives of well-being services counties. The company serves WSCs in matters of social, health and rescue operations.
Therefore, the rapporteurs consider that Article 10, paragraph 2 of the Charter is respected in Finland.

Article 10.3
Local authorities' right to associate - Article ratified

Local authorities shall be entitled, under such conditions as may be provided for by the law, to co-operate with their counterparts in other States.

Article 10, paragraph 3, addresses the cooperation of local authorities with their counterparts in other States. The right to engage in cross-border cooperation is also protected.
Finland has a long tradition of cross-border cooperation. It has ratified the European Outline Convention on Transfrontier Cooperation between Territorial Communities or Authorities (ETS No. 106) on 11 September 1990.
During the visit in South Karelia, the delegation was informed of the cross-border collaboration previously existing with Russian municipalities. Before the war, 95% of external relations were with Russia. After the aggression of Ukraine by Russia, these programmes have been stopped and the regional government is building new international cooperation with similar regions of Baltic States.
Therefore, the rapporteurs consider that Article 10, paragraph 3 of the Charter is fully respected in Finland.

Article 11
Legal protection of local selfgovernment - Article ratified

Local authorities shall have the right of recourse to a judicial remedy in order to secure free exercise of their powers and respect for such principles of local self-government as are enshrined in the constitution or domestic legislation.

Article 11 of the Charter refers to an effective judicial remedy to ensure respect for local self-government. It stresses the requirement that local authorities should have the right to invoke and to defend in the courts the principles of local self-government, especially in the context of lawsuits in which their rights and powers are challenged or curtailed, or when those rights are endangered by the higher (central or regional) levels of government. “Recourse to a judicial remedy” means access by a local authority to either a properly constituted court of law or an equivalent, independent, statutory body.
Finland has no constitutional court and acts of the parliament are not justiciable in abstracto. Therefore, and contrary to other European countries, there is no specific constitutional appeal or procedure designed to challenge an Act of Parliament, if the act is thought to be in contradiction with the general principles of local autonomy laid down by article 121 of the Finnish Constitution.
Both civil and administrative courts, however, have the power to analyse the constitutionality of legislation enacted by the Parliament, if this legislation is to be applied in an actual case. If they find that a statute or a provision thereof is in evident conflict with the Constitution, the courts may decide not to apply the suspect legal provision in that specific case, but they lack the power to set aside the said provision. Also, a specific feature of the Finnish legal system is the constitutional supervision exercised by the Constitutional Committee of Parliament. All major government bills may be analysed by the Committee, which decides on their constitutionality before they eventually become binding statutes.
Municipalities can challenge any administrative decision through an administrative appeal. Accordingly, the municipalities have recourse to administrative courts whenever an administrative decision is directed to them, insofar as it affects their rights or obligations. According to information provided by the Supreme Administrative Court of Finland, municipal appeals mostly deal in practice with various internal disagreements or individual claims. Disputes between municipalities also occur, e.g. with regard to various costs or intermunicipal cooperation. As a rule, however, appeals aimed at protecting municipal self-government rarely occur. Nevertheless, some cases have been mentioned during the meeting with the delegation: for example, the annulment of a governmental decision on forced amalgamation of municipalities, or the decision on the discretion of the municipalities in shaping the organisation of the personnel.
Therefore, the rapporteurs consider that Article 11 is respected in Finland.

ACCESSION

to the Council of Europe 5 May 1989

RATIFICATION

of the European Charter of Local Self-Government 3 June 1991

CONSTITUTION | NATIONAL LEGISLATION

The principle of local government is explicitly recognised in the Finnish Constitution. In Section 121, para. 1, it is provided that “Finland is divided into municipalities, whose administration shall be based on the self-government of their residents”, while para. 2 stipulates that municipalities “have the right to levy municipal tax”.



30Ratified provision(s)
0Provision(s) with reservation(s)
0 Unratified Provision(s)
25Compliant Provision(s)
5Partially Compliant Articles
0Non-compliant Article